Amid a Cooling Job Market, These Cities Stay Top Picks for New Graduates
Navigating the job market as a new graduate can be an exhilarating yet daunting endeavor.
The Class of 2024 is stepping into a job market that is cooling down from the post-pandemic hiring frenzy, although it remains robust.
However, the prospects and quality of life that await young adults post-graduation can heavily depend on the cities they choose to live and work in.
With this reality in mind, Realtor.com recently unveiled a list of top rental markets perfect for recent college graduates, taking into account factors such as job opportunities, rent availability, affordability, the presence of other grads, and cultural amenities.
This curated selection aims to guide new grads in making informed decisions for their job and home searches.
The Job Market Outlook for Recent College
National Trends and Economic Factors
It has been forecasted by the National Association of Colleges and Employers that hiring for the Class of 2024 will decrease by 1.9% compared to their counterparts from the previous year.
This projection can be attributed to various economic forces shaping the job landscape.
Tech and Finance Sector Adjustments
In particular, the tech and finance sectors have seen a surge in layoffs.
Excessive hiring during the pandemic era, coupled with the Federal Reserve’s high interest rates aimed at curbing inflation, has squeezed profits, leading to job cuts.
Companies in the consulting realm, like EY, have also delayed start dates for new graduates due to a slowdown in demand for their services.
Moreover, the competition has intensified, with two applicants vying for every job vacancy, as opposed to the one-to-one ratio observed in 2022.
Analyzing the Cooling Job Market in 2024
Underlining Job Market Dynamics
Across the country, job openings have witnessed a decline, down to 8.5 million in March, which is the lowest since February 2021.
Hiring rates have also dipped below pre-pandemic levels.
After averaging job gains of 269,000 per month in the first quarter, employers added only 175,000 jobs in April, signaling a possible downturn.
Realtor.com’s Research Methodology
Realtor.com assessed 313 cities and towns within the 50 largest metro areas, each with populations over 75,000, to identify the best job markets for recent graduates.
This extensive analysis revealed several overarching themes, such as the affordability of Midwest markets, higher vacancy rates in the South due to multifamily construction booms, and abundant entry-level jobs in tech hubs like Austin, Texas.
Top Cities for Recent College Graduates: Detailed Insights
Understanding the nuances of each top-ranking city can significantly aid new graduates in making well-informed decisions:
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Austin, Texas
- Rent-to-Income Ratio: 21.4%
- Graduate-Friendly Occupations: 29.6%
- Recent College Grads: 3.3%
- Average Commute Time: 26 minutes
- Yelp Culture and Lifestyle Businesses: 21.5 per 1,000 households
- Rental Vacancy Rate: 9%
- Unemployment Rate: 3.3%
- Job Postings Index: 125
Austin stands out with the highest percentage of graduate-friendly occupations and a notable rental vacancy rate, making it a prime location for new grads seeking employment and accommodation.
The city’s vibrant culture, robust job market, and quality of life solidify its top spot.
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Bloomington, Minnesota
- Rent-to-Income Ratio: 19.9%
- Graduate-Friendly Occupations: 26.7%
- Recent College Grads: 2.5%
- Average Commute Time: 23 minutes
- Yelp Culture and Lifestyle Businesses: 22.4 per 1,000 households
- Rental Vacancy Rate: 7.9%
- Unemployment Rate: 3.1%
- Job Postings Index: 125
Bloomington is acclaimed for its affordability and low unemployment rate.
The city’s manageable commute times and substantial cultural amenities contribute to a balanced lifestyle for new grads.
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Pittsburgh
- Rent-to-Income Ratio: 21.7%
- Graduate-Friendly Occupations: 26.7%
- Recent College Grads: 4.4%
- Average Commute Time: 25 minutes
- Yelp Culture and Lifestyle Businesses: 24.6 per 1,000 households
- Rental Vacancy Rate: 6.3%
- Unemployment Rate: 3.5%
- Job Postings Index: 131
Pittsburgh excels with the highest share of recent grads and a strong job postings index.
The city’s cultural richness and reasonable rent-to-income ratio make it an attractive destination for young professionals.
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Raleigh, North Carolina
- Rent-to-Income Ratio: 21.4%
- Graduate-Friendly Occupations: 28.8%
- Recent College Grads: 2.9%
- Average Commute Time: 25 minutes
- Yelp Culture and Lifestyle Businesses: 17.1 per 1,000 households
- Rental Vacancy Rate: 8.7%
- Unemployment Rate: 3.4%
- Job Postings Index: 119
Raleigh is recognized for its high proportion of graduate-friendly jobs and appealing rent-to-income ratio.
Its dynamic job market, combined with a modest commute time, makes it a compelling choice for new graduates.
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Overland Park, Kansas
- Rent-to-Income Ratio: 20.7%
- Graduate-Friendly Occupations: 24.5%
- Recent College Grads: 3.3%
- Average Commute Time: 22 minutes
- Yelp Culture and Lifestyle Businesses: 18.1 per 1,000 households
- Rental Vacancy Rate: 7.5%
- Unemployment Rate: 3.4%
- Job Postings Index: 124
Overland Park shines with the lowest commute time in its category, coupled with a favorable rent-to-income ratio.
The city’s job market and lifestyle amenities support a balanced and fulfilling life for recent grads.
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Richmond, Virginia
- Rent-to-Income Ratio: 24.6%
- Graduate-Friendly Occupations: 25.8%
- Recent College Grads: 3.7%
- Average Commute Time: 24 minutes
- Yelp Culture and Lifestyle Businesses: 24.4 per 1,000 households
- Rental Vacancy Rate: 4.9%
- Unemployment Rate: 3.4%
- Job Postings Index: 127
Richmond’s combination of cultural vibrancy and graduate-friendly job availability makes it a desirable location for new graduates.
The city’s historical charm and modern amenities create a unique living experience.
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Scottsdale,Arizona
- Rent-to-Income Ratio: 24.4%
- Graduate-Friendly Occupations: 22.1%
- Recent College Grads: 2.9%
- Average Commute Time: 23 minutes
- Yelp Culture and Lifestyle Businesses: 25.2 per 1,000 households
- Rental Vacancy Rate: 8.1%
- Unemployment Rate: 4%
- Job Postings Index: 166
Scottsdale stands out with the highest job postings index among the top cities.
The city’s robust array of culture and lifestyle offerings, combined with manageable commute times, makes it an appealing destination for young graduates looking to start their professional lives on a high note.
