Business & Finance

One state dominated this list of the best cities for college grads


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 marketand 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


Austin.

halbergman/Getty Images

  • 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


Miami Beach, Florida.

Miami Beach, Florida.

Volodymyr TVERDOKHLIB/Shutterstock

  • 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


Aerial shot of downtown San Diego, California.

San Diego.

halbergman/Getty Images

  • 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


St. Louis, Missouri, USA downtown cityscape on the Mississippi River at twilight.


Sean Pavone/Shutterstock

  • 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


Houston, Texas, downtown park and skyline.

Houston.

Sean Pavone/Getty Images

  • 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


Chicago, Illinois

Chicago, Illinois.

Moses P/Shutterstock

  • 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


Dallas, Texas.

Dallas, Texas.

travelview/Shutterstock

  • 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


Boston, Massachusetts, USA skyline with Faneuil Hall and Quincy Market at dusk.

Boston, Massachusetts.

Sean Pavone/Shutterstock

  • 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


Aerial View of Downtown Omaha, Nebraska in Autumn

Omaha, Nebraska.

Jacob Boomsma/Shutterstock

  • 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.


Washington DC. Aerial panoramic view of Pennsylvania Avenue landmarks and United states Congress view, USA

Washington, D.C.

xbrchx/Shutterstock

  • 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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