The countdown to graduation is on for the class of 2025. For college graduates, that means it's time to decide what's next and that includes where to live — should they stay local? Move back home? Or head to an entirely new city in search of more opportunity? A new report from Apartment Advisor might help new grads better make a decision.
The report, released in April, evaluated and ranked 98 cities to determine the best places for recent college grads.
Apartment Advisor gave each one a final score based on the following categories:
- Opportunity score (35%): the year-over-year population change from 2022 to 2023, the size of the young adult (residents in their 20s) population, the percentage of bachelor's degree holders who are unemployed and the percentage of the population with a bachelor's degree or above.
- Cost of living score (25%): median individual yearly earnings for bachelor's degree holders, a rent-to-earnings ratio based on the median monthly rent over the last three months, and the cost-of-living index.
- Mobility score (15%): "bikescore", "walkscore", and "transitscore"
- Entertainment score (25%): the densities per capita of: active life, nightlife, restaurants, shopping locations and arts and entertainment venues,
While many new grads might be looking to move to places like Boston or New York City, Lilly Milman, editor at Apartment Advisor, tells CNBC Make It that it might be better to think twice and do your research.
"The numbers don't quite add up for [New York City or Boston] being a 'high economic opportunity' for recent college grads." she says.
No. 1 U.S. city for recent college graduates: Salt Lake City
Salt Lake City ranked as the best city for college graduates.
It has the third-largest percentage of young adults and is one of the fastest-growing cities in the country, coming in second on the list for population growth.
Milman says Salt Lake City's No. 1 spot is part of a rising trend in the West Mountain region of the U.S. where there are fast-growing cities where rent is decreasing.
"It's kind of an interesting inverse relationship and that's because of a boom of new construction projects during the covid years," she says. "It's a city where people are moving to. It has affordability, great opportunity, lots of young people and lots of new development."
The median rent for a one-bedroom apartment in Salt Lake City is $1,298. It also has a 1.18% percentage of unemployment for bachelor's degree holders and a income-to-rent ratio of 24.7%, according to Apartment Advisor.
Salt Lake City offers residents close proximity to several national parks. It is also one of the sunniest cities in the country and is considered to be very "bikeable."
Top 10 U.S. cities for recent college graduates
- Salt Lake City, Utah
- Washington, D.C.
- Portland, Maine
- Seattle, Wash.
- Charleston, S.C.
- Madison, Wis.
- Atlanta, Ga.
- San Francisco, Calif.
- Chicago, Ill.
- Tampa, Fla.
Washington, D.C. is the No. 2 city for young college graduates.
According to Apartment Advisor, the nation's capital is the second-most educated place in the country, with 65.9% of D.C. residents having at least a bachelor's degree, the second highest on the list.
"There's this aspect of it being really easy to get around without a car, which we figure is a positive for a lot of college grads and there is a very high density of entertainment," Milman says. "It's not necessarily what everyone would call an affordable city, but the higher rent prices are offset by the fact that people there tend to have higher earnings."
Washington, D.C. ranked No. 3 for the highest median earnings for those with a bachelor's degree. The median rent for a one-bedroom apartment is $2,215.
Washington, D.C. offers young people an extensive public transit system and access to many museums, cultural sites, and public parks.
The District is also close to Maryland and Virginia, giving residents an easy way to escape the immediate metro area when needed.
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