Top Cities for Grads to Launch Careers Despite Market Slowdown
As the hiring surge post-pandemic cools, the Class of 2024 graduates face a stable yet less heated job market in the U.S. The career and quality of life they experience after graduation can greatly depend on their choice of location.
To aid in this decision, Realtor.com recently revealed a list of top rental markets for new grads, factoring in job opportunities, rental availability and affordability, the presence of fellow graduates, and cultural amenities.
Austin, Texas, takes the top spot, followed by Bloomington, Minnesota, and Pittsburgh.
Danielle Hale, Chief Economist at Realtor.com, advises, “Grads who are still exploring their options and interested in new areas should consider this curated list of cities when searching for jobs and homes.”
According to the National Association of Colleges and Employers, hiring for 2024 graduates is projected to dip by 1.9% compared to the previous year. This is due to tech and finance companies cutting jobs after excessive pandemic hiring and the impact of the Federal Reserve’s high-interest rates on financial firms’ profits.
Additionally, consulting firms like EY are delaying new grad start dates due to a service demand slowdown, and there are currently two applicants for every job vacancy, up from one in 2022.
In March, job openings in the U.S. fell to 8.5 million, the lowest since February 2021, and hiring dropped below pre-pandemic levels. Job gains averaged 269,000 per month in Q1, but only 175,000 jobs were added in April, indicating a potential slowdown.
Realtor.com analyzed 313 cities and towns in the 50 largest metro areas with populations over 75,000 to determine the best job markets for grads. Key findings include affordable Midwest markets, higher vacancy rates in the South due to multifamily construction, and numerous entry-level jobs in tech hubs like Austin.
“The top rental markets for college graduates are not in the largest urban areas,” Hale notes.
Key averages for the communities include a rent-to-income ratio of 29.7%, rental vacancy rate of 6.3%, 23.9% share of entry-level jobs, 3.4% share of recent grads, 4.2% unemployment, a job posting index of 121, a 30-minute average commute, and 23.9 entertainment, shopping, and lifestyle establishments per 1,000 households.
Here are the top seven cities for recent college grads according to Realtor.com:
Austin, Texas
◾ Rent-to-income ratio: 21.4%
◾ Share of graduate-friendly occupations (no prior experience required): 29.6% (tops in category)
◾ Share of recent college grads: 3.3%
◾ Average commute time: 26 minutes
◾ Yelp culture and lifestyle business per 1,000 households: 21.5
◾ Rental vacancy rate: 9% (tops in category)
◾ Unemployment rate: 3.3%
◾ Job postings index (based on average of 100): 125
Bloomington, Minnesota
◾ Rent-to-income ratio: 19.9% (most affordable in category)
◾ Share of graduate-friendly occupations (no prior experience required): 26.7%
◾ Share of recent college grads: 2.5%
◾ Average commute time: 23 minutes
◾ Yelp culture and lifestyle business per 1,000 households: 22.4
◾ Rental vacancy rate: 7.9% (tops in category)
◾ Unemployment rate: 3.1% (Lowest in category)
◾ Job postings index (based on average of 100): 125
Pittsburgh
◾ Rent-to-income ratio: 21.7%
◾ Share of graduate-friendly occupations (no prior experience required): 26.7%
◾ Share of recent college grads: 4.4% (tops in category)
◾ Average commute time: 25 minutes
◾ Yelp culture and lifestyle business per 1,000 households: 24.6
◾ Rental vacancy rate: 6.3%
◾ Unemployment rate: 3.5%
◾ Job postings index (based on average of 100): 131
Raleigh, North Carolina
◾ Rent-to-income ratio: 21.4%
◾ Share of graduate-friendly occupations (no prior experience required): 28.8%
◾ Share of recent college grads: 2.9%
◾ Average commute time: 25 minutes
◾ Yelp culture and lifestyle business per 1,000 households: 17.1
◾ Rental vacancy rate: 8.7%
◾ Unemployment rate: 3.4%
◾ Job postings index (based on average of 100): 119
Overland Park, Kansas
◾ Rent-to-income ratio: 20.7%
◾ Share of graduate-friendly occupations (no prior experience required): 24.5%
◾ Share of recent college grads: 3.3%
◾ Average commute time: 22 minutes (lowest in category)
◾ Yelp culture and lifestyle business per 1,000 households: 18.1
◾ Rental vacancy rate: 7.5%
◾ Unemployment rate: 3.4%
◾ Job postings index (based on average of 100): 124
Richmond, Virginia
◾ Rent-to-income ratio: 24.6%
◾ Share of graduate-friendly occupations (no prior experience required): 25.8%
◾ Share of recent college grads: 3.7%
◾ Average commute time: 24 minutes
◾ Yelp culture and lifestyle business per 1,000 households: 24.4
◾ Rental vacancy rate: 4.9%
◾ Unemployment rate: 3.4%
◾ Job postings index (based on average of 100): 127
Scottsdale, Arizona
◾ Rent-to-income ratio: 24.4%
◾ Share of graduate-friendly occupations (no prior experience required): 22.1%
◾ Share of recent college grads: 2.9%
◾ Average commute time: 23 minutes
◾ Yelp culture and lifestyle business per 1,000 households: 25.2
◾ Rental vacancy rate: 8.1%
◾ Unemployment rate: 4%