More affordable rental options
The rent-to-income ratio for households aged between 25 and 34 represents the portion of their typical gross income allocated to housing expenses. A lower rent-to-income ratio is preferred because it suggests that housing costs are a smaller proportion of a typical monthly paycheck, which can mean more monthly budget is available for other expenses.
The top markets as a group are located in metro areas that have an average rent-to-income ratio of 22.5% for households aged between 25 and 34, suggesting rents made up 22.5% of a typical young household income, on average. This figure is lower than both the town/city average of 29.7% and the average of the top 50 metros, which stands at 26.1%.
Among the top 10 markets, the rent-to-income ratio spans 19.9% to 26.7%. Specifically, Bloomington, MN, located within the Minneapolis鈥揝t. Paul鈥揃loomington metro area (19.9%), emerges as the most affordable top-ranked rental market within the top markets.
Additionally, Overland Park and St. Louis within the Kansas City metro area (20.7%) and St. Louis metro area (21.7%) both rank high for affordability within the top 10 list. This observation aligns with our previous findings indicating that Midwest markets tend to have greater affordability.
Plenty of rental properties to choose from
The rental vacancy rate measures the not-currently-lived-in supply of homes for rent, and can be a proxy for how easily potential renters could find a place to live. A higher rental vacancy rate means renters could have an abundance of rental properties to choose from and may wield greater bargaining power when negotiating with landlords. 听
The top markets as a group are located within metro areas that have an average rental vacancy rate of 7.6%, surpassing both the town/city average of 6.3% and the average of the top 50 metros, which stands at 6.8%.
Among the top 10 markets, the rental vacancy rate ranges from 4.9% to 9.0%. Austin, TX, within the Austin鈥揜ound Rock metro area (9.0%), boasts the highest rental vacancy rate. Additionally, cities in the Southern metros such as Atlanta, in the Atlanta鈥揝andy Springs鈥揜oswell metro (8.7%), and Raleigh, NC, from the Raleigh metro (8.7%), both rank prominently for rental availability.
One possible explanation for the higher vacancy rates in the South could be the surge in new multifamily construction and completion in that region, which expands the overall rental inventory.
Higher share of recent college graduate-friendly occupations
A market with a higher proportion of recent college graduate-friendly occupations implies that new graduates may encounter less difficulty entering the workforce and securing positions that match their skills and qualifications, rendering these markets more appealing.
To define these roles, Realtor.com leveraged data from the , categorizing occupations that require a bachelor鈥檚 degree but no prior experience as recent college graduate-friendly.
The top markets as a group are located within metro areas where an average of 25.8% of occupations are recent college graduate-friendly, exceeding both the town/city average of 23.9% and the average of the top 50 metros, which stands at 24.5%.
In the top 10 markets, the share of recent college graduate-friendly occupations ranged from 22.1% to 29.6%. Austin, TX, part of the Austin鈥揜ound Rock metro area and home to many tech-fueled company offices, including , leads with 29.6% of occupations in this category. Austin is followed by Raleigh, NC, in the Raleigh metro area, with 28.8%, and Bloomington, MN, in the Minneapolis鈥揝t. Paul鈥揃loomington metro area, with 26.7%.
More stable job markets
A lower forecasted unemployment rate suggests that recent college graduates could encounter less competition when seeking employment, and better job security, which will help to launch their careers and achieve their professional goals.
The top markets as a group are located within metro areas that have an average forecasted 2024 unemployment rate of 3.6%, lower than the 4.2% town/city average and forecasted metro average of 4.0%.
Among the top 10 markets, the unemployment rate ranged from 3.1% to 4.2%. Bloomington, MN, within the Minneapolis鈥揝t. Paul鈥揃loomington metro area (3.1%) is forecasted to have the lowest unemployment rate in 2024 among the top 50 metros, followed by Austin, TX, in the Austin-Round Rock metro area with a rate of 3.3%, and Raleigh, NC, Overland Park, KS, and Richmond, VA, whose surrounding metros are all forecasted to have an unemployment rate of 3.4% in 2024.听听
More job opportunities
The online job opening is measured by . The index has been normalized to 100 as of February 2020. As a result, the higher the index is, the faster the job market growth when compared with the pre-COVID-19 pandemic baseline.听
The top markets as a group are located within metro areas that have an average online job posting index of 129, higher than the 121 town/city average and the 124 metro average.听
Within the top 10 cities, the average index ranged between 114 and 166. Specifically, Scottsdale within Phoenix-Mesa-Scottsdale metro (166) experienced the highest increase in job openings when compared with the pre-pandemic period. Additionally, cities in Atlanta, GA, from Atlanta-Sandy Springs-Roswell metro (134) and Pittsburgh, PA, from Pittsburgh metro (131) both rank high for job openings.听
High share of recent college graduates
Living in markets with a high share of recent college graduates can benefit recent graduates by providing a supportive environment, networking opportunities, and access to entry-level jobs. This enhances the transition from college to the workforce and fosters professional and personal growth.听
The top cities on our list boast an average recent college graduate share of 3.4%, higher than the town/city average of 1.9%.听
Among the top 10 cities, the share of recent college graduates ranged from 2.5% to 4.4%. Notably, Pittsburgh, PA (4.4%), boasts the highest share, followed by Atlanta, GA (4.2%), and Richmond, VA (3.7%).听
Shorter commutes to work
Although people may opt for affordable rentals by searching farther from urban areas, the time spent on longer commutes can sometimes outweigh the monetary savings.听
The top cities on our list boast an average expected commute time of 25 minutes in 2024, which is shorter than the city/town average of 30 minutes. This translates to a potential saving of 43 hours per year for a commuter traveling five days a week.
Among the top 10 cities, commute times ranged from 22 to 28 minutes. Notably, Overland Park, KS, boasts the shortest average commute time of 22 minutes. Situated near major highways like Interstates 35 and 425, as well as significant thoroughfares such as Metcalf Avenue and College Boulevard, Overland Park offers efficient transportation options for its residents. Bloomington, MN, and Scottsdale, AZ, were not far behind; both have an average commute time of 23 minutes.听
A fun place to live
The top cities and towns boast a greater abundance of entertainment, shopping, and lifestyle establishments, . These establishments encompass a variety of venues such as restaurants, cafes, bars, shops, theaters, comedy clubs, and art studios.听
As a group, these top cities and towns have 23.9 of these businesses per 1,000 households, surpassing the average for all cities and towns, which stands at 19.3.
Among the top 10 markets, the number of businesses per 1,000 households ranged between 17.1 and 39.5. 听Specifically, Beaverton, OR, claimed the highest position within the top 10 list, boasting a ratio of 39.5. Following closely are Atlanta, GA, with a ratio of 27.5, and Scottsdale, AZ, with a ratio of 25.2.
Data source and methodology
For the purpose of the research, we ranked 313 cities and towns with a population of more than 75,000 that are located within the 50 largest metro areas.
Rent-to-income ratio: Rental data are studio, 1-bedroom, or 2-bedroom units advertised as for-rent on Realtor.com between April 2023 and March 2024 in the top 50 metros. Rental units include apartments as well as private rentals (condos, townhomes, single-family homes). Household income was sourced from听 2024 Claritas estimates based on Census Bureau data.
Rental vacancy rates were the 2023 average vacancy rates calculated from the Census鈥� Housing Vacancies and Homeownership Survey for each city/place鈥檚 surrounding metro area.
Recent college graduate-friendly occupations were those defined by the, requiring a bachelor鈥檚 degree but no prior experience. The share of these occupations were then calculated using 2022 ACS 1-Year individual data for each city/place鈥檚 surrounding metro area. The stated forecasted unemployment rates are Moody鈥檚 Analytics projections of U.S. Bureau of Labor Statistics Local Area Unemployment Statistics for each city/place鈥檚 surrounding metro area.
The metro-level online job posting index was sourced from , and we took the average index between April 2023 and March 2024.听 听
The share of recent college graduates was estimated using 2022 ACS 1-Year individual data. Recent college graduates were individuals who were between 25 and 29 years old, earned a bachelor’s degree, and were not in school.
The average commute time data was sourced from 2024 Claritas estimates based on Census Bureau data.
Counts of culture and lifestyle businesses were aggregated from and are aggregated at the city/place level. The counts were then normalized using 2023 Claritas city/place-level household data.
