College graduates embarking on careers and setting up homes in new cities might not think of Austin, TX, as the most affordable place to live, but that would be a mistake.
It has everything a young adult could want, including job opportunities, shorter commutes to work, and plenty of amenities like cafes, restaurants, and nightlife, according to the latest Realtor.com report.
The median monthly rent now stands at $1,450, under the national median of $1,699.
“Austin stands out as the top-ranked city thanks to its strong performance across multiple factors that matter most to recent college graduates—including relatively affordable housing, robust job prospects, a larger peer network, and a lively, culturally rich environment,” says Jiayi Xu, an economist at Realtor.com.
“In addition to affordable living costs, thriving job markets, and vibrant lifestyles, many of these cities are home to prestigious universities and research centers, such as the University of Texas at Austin, Carnegie Mellon University, and Emory University.”
The report analyzed 318 cities and towns with populations of more than 75,000 that are located within the 50 largest metro areas, and took into account these factors important to recent college grads: rental affordability (estimated by rent-to-income ratio for households between 25 and 34 years old); rental availability; share of college graduate-friendly occupations; job stability rates; and job opportunities.
No. 1: Austin, TX
Austin, TX, came out on top, notably because of its 18.9% rent-to-income ratio—the lowest on the list. All of the markets have a lower ratio than the town/city average of 28.3% and the 24.9% average across the top 50 metro areas. The lower the rate, the better.
Additionally, Austin’s local tech-driven companies (among those, the Realtor.com headquarters) promise stable, well-compensated jobs that can pay the rent.
“While it’s true that Austin’s median rent and for-sale prices are not the lowest nationally, Austin remains relatively affordable when compared to other major metropolitan areas, particularly big city/ tech hubs like New York and San Jose, where median rents are more than double those in Austin,” says Xu.
Realtor.com
And while reasonably priced rents are important, so is being able to find a rental. The report took into account how easy that was to do in each place.
The top markets have an average rental vacancy rate of 8.3%, higher than both the town/city average of 6.6% and the 7.2% average across the top 50 metro areas.
Since being able to land a well-paying job after college is so vital to being able to afford rent, even a below-market rent, the report also assigned each metro a number based on the Indeed Hiring Index.
The index has been normalized to 100 as of February 2020. As a result, the higher the index is, the greater the job market opportunities are when compared to the pre-pandemic baseline.
The cities with the highest index numbers on the list were Scottsdale, AZ, and Richmond, VA. Only one area falls below the baseline: Minneapolis, MN, at 96.
1. Austin, TX
Rent-to-income ratio: 18.9%
Rental vacancy rate: 29.4%
Indeed Hiring Index: 114
Home to six colleges, Austin locals can afford a median monthly rent of $2,560, according to Realtor.com data, with an average annual income of $95,475—that’s 15.6% higher than the average across the top 50 U.S. metros.
However, the average rent in this vibrant Texas city is only $1,470.
Austin got its “Silicon Hills” nickname because of its many local tech employers such as Dell, IBM, Google, and Apple. It also has a vibrant nightlife scene, with bars, restaurants, and music venues galore.
2. Raleigh, NC
Rent-to-income ratio: 20%
Rental vacancy rate: 9%
Indeed Hiring Index: 113
Raleigh overtakes Bloomington, MN, for the second spot on the list this year. While locals can afford a $2,453 monthly rent, they only need to pay $1,489 on average. Raleigh also has the highest (30.4%) share of college grad-friendly occupations in the top 10 places.
3. Overland Park, KS
Rent-to-income ratio: 20.6%
Rental vacancy rate: 9.2%
Indeed Hiring Index: 114
At an average of 22 minutes, Overland Park has the shortest commute-to-work time. Longer commutes are not only more expensive, but they also take a toll on work-life balance and mental health. Long, knotty commutes can also signal a city that hasn’t kept pace with its growing populace.
4. Minneapolis, MN
Rent-to-income ratio: 19.7%
Rental vacancy rate: 5.2%
Indeed Hiring Index: 96
Known for being “the city of lakes” and also having the country’s largest shopping mall, The Mall of America, Minneapolis has one of the lowest rent-to-income ratios on the list. But it also has the lowest Indeed Hiring Index, meaning that while the average person will spend less on rent, they may also have a more difficult time finding a job than in the other cities on the list.
5. St. Louis, MO
Rent-to-income ratio: 20.8%
Rental vacancy rate: 8%
Indeed Hiring Index: 114
With a rental vacancy rate of 8.0%, it will be easier to find a rental in St. Louis than most of the other places on the list, but with a rent-to-income ratio of 20.8%, you’ll spend a bit more for it.
6. Richmond, VA
Rent-to-income ratio: 23.2%
Rental vacancy rate: 8.2%
Indeed Hiring Index: 126
Tied with Scottsdale, AZ, for the highest hiring index, Richmond offers better chances at finding a job than other places on the list. But with a rent-to-income ratio of 23.2%, it’s a bit more expensive to rent here than in other towns.
One of America’s oldest cities, Richmond offers excellent proximity to Washington, D.C., and Delaware’s expansive beaches.
7. Pittsburgh, PA
Rent-to-income ratio: 22.3%
Rental vacancy rate: 8.7%
Indeed Hiring Index: 113
Pittsburgh has long played second fiddle to Philadelphia, but recently it is coming into its own as an affordable place to live, and is being recognized for its beauty and vibrancy rather than its past as a steel town.
With an April 2025 median asking rent of $1,459, Pittsburgh offers up reasonable rents and plenty to do.
8. Scottsdale, AZ
Rent-to-income ratio: 22.5%
Rental vacancy rate: 7.9%
Indeed Hiring Index: 126
While Scottsdale might be known for its golfing, retirement communities, and “dry heat,” it’s also a place that is friendly to recent college graduates, with a high hiring index of 126 and a high share (23.0%) of college grad-friendly occupations.
Bonus points: Many apartment complexes come with pools.
9. Richardson, TX
Rent-to-income ratio: 22.4%
Rental vacancy rate: 8.9%
Indeed Hiring Index: 112
New to the list, Richardson certainly isn’t as well-known as Austin, but give it a chance. The city blasts onto the list with a high (25.3%) share of college grad-friendly occupations and a very low (3%) forecasted unemployment rate.
“Richardson not only outperforms in the key metrics mentioned above but also boasts diverse and dynamic economies,” says Xu. “The city benefits from significant cross-sector synergy—particularly between technology, healthcare, finance, and business services.”
10. Atlanta, GA
Rent-to-income ratio: 24.1%
Rental vacancy rate: 9.3%
Indeed Hiring Index: 124
While Atlanta may be a bit more expensive than other areas on the list, it benefits from having the highest rental vacancy rate.
One possible explanation for the elevated vacancy rate is a surge in new multifamily construction, which has expanded the overall supply of rental units. Atlanta-Sandy Springs-Roswell, GA, is among the markets with some of the highest recent multifamily permitting relative to the previous five years.
And, of course, the city isn’t known as “Hotlanta” for nothing. Its location score—a measure of amenities like shopping, restaurants, cafes, and nightlife—tops the list at 4.9.