Graduation season is upon us, and while this year’s graduates have much to celebrate, they’re also entering adulthood under significant financial pressure.
They have more student loan debt than previous generations, face an unforgiving job market, and are trying to navigate a housing market where high prices and mortgage rates have made homeownership feel unaffordable.
Where graduates choose to live after graduation could make a big difference, and a new report from Redfin and Glassdoor could help with their decision. The companies ranked 10 major metros using 13 indicators related to housing affordability, career opportunities, and urban quality of life.
Across all states, the ranking suggests Texas is a standout destination for college grads. Three of its largest cities — Dallas, Houston, and Austin — round out the top 10. Redfin and Glassdoor highlighted their strong job markets and relatively affordable rent for recent grads.
“These cities in Texas do great on all metrics: robust job markets, good amenities, and relatively affordable housing,” Asad Khan, a senior economist with Redfin, told Business Insider. “Strong housing supply growth in Texas has been key to allowing these cities to grow and attract young professionals from high-cost states around the country.”
“The strong industry mix also makes these cities more resilient and attractive to a wide range of early career workers,” Khan added.
Read on to find out which other cities made the cut. Here are the 10 best big cities for this year’s graduates, according to Redfin and Glassdoor.
10. Austin
- Average early-career earnings: $72,025
- Price of typical starter home: $276,600
- Years to save for down payment: 4 years, 1 months
- Monthly mortgage payment as percent of income: 30.3%
- Monthly rent as percent of income: 35%
9. Miami
- Average early-career earnings: $62,748
- Price of typical starter home: $210,000
- Years to save for down payment: 3 years, 11 months
- Monthly mortgage payment as percent of income: 26.4%
- Monthly rent as percent of income: 33%
8. San Diego
- Average early-career earnings: $74,053
- Price of typical starter home: $615,000
- Years to save for down payment: More than 10 years
- Monthly mortgage payment as percent of income: 65.4%
- Monthly rent as percent of income: 64%
7. St. Louis
- Average early-career earnings: $61,834
- Price of typical starter home: $150,000
- Years to save for down payment: 2 years, 7 months
- Monthly mortgage payment as percent of income: 19.1%
- Monthly rent as percent of income: 23%
6. Houston
- Average early-career earnings: $65,369
- Price of typical starter home: $215,000
- Years to save for down payment: 3 years, 7 months
- Monthly mortgage payment as percent of income: 25.9%
- Monthly rent as percent of income: 18%
5. Chicago
- Average early-career earnings: $72,786
- Price of typical starter home: $202,000
- Years to save for down payment: 3 years
- Monthly mortgage payment as percent of income: 21.9%
- Monthly rent as percent of income: 28%
4. Dallas
- Average early-career earnings: $67,451
- Price of typical starter home: $240,000
- Years to save for down payment: 4 years, 1 month
- Monthly mortgage payment as percent of income: 28%
- Monthly rent as percent of income: 26%
3. Boston
- Average early-career earnings: $80,026
- Price of typical starter home: $460,000
- Years to save for down payment: 6 years, 8 months
- Monthly mortgage payment as percent of income: 45.3%
- Monthly rent as percent of income: 53%
2. Omaha
- Average early-career earnings: $59,123
- Price of typical starter home: $195,000
- Years to save for down payment: 3 years, 8 months
- Monthly mortgage payment as percent of income: 26%
- Monthly rent as percent of income: 28%
1. Washington, D.C.
- Average annual early-career earnings: $79,857
- Price of typical starter home: $320,000
- Years to save for down payment: 4 years, 2 months
- Monthly mortgage payment as percent of income: 31.6%
- Monthly rent as percent of income: 34%
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