Phoenix is named Zillow's best market for the class of 2024

Rhea-AI Summary

Zillow's latest analysis highlights Phoenix as the leading market for new college graduates in 2024. This ranking is based on factors including rent affordability, job prospects, and the number of residents in their twenties. Phoenix's strong job market and generous rental concessions make it the top choice, with graduates expected to spend 34.5% of their median entry-level income on rent. Albuquerque, Colorado Springs, San Antonio, and Portland, Oregon, also make the top five. Conversely, Miami and the New York City metro area rank low due to high rental costs. Des Moines offers the most affordable rents, with graduates spending less than a quarter of their income on rent. Charlotte stands out for offering the highest percentage of rental concessions. Zillow's data aims to help new grads find affordable living options while starting their careers.

Positive

• Phoenix ranks as the best market for 2024 college grads based on rental affordability, job prospects, and young resident population.
• Phoenix's job market ranks second among the analyzed markets, enhancing its attractiveness.
• 50.5% of Phoenix rental listings offer concessions, aiding in rent affordability.
• Des Moines ranks highest for rent affordability, with grads spending less than 25% of their income on rent.
• Charlotte features the highest percentage (57%) of rental listings offering concessions.

Negative

• Phoenix's rents are relatively expensive, requiring 34.5% of a typical grad's income.
• Miami and New York City metro areas rank low due to significant rent affordability challenges.
• Portland's job market ranks 80th, posing potential challenges despite other strengths.

Zillow analyzed rent affordability, job openings and the number of residents in their 20s to come up with this year's ranking of the best markets for new college grads

• Phoenix, Albuquerque, Colorado Springs, San Antonio and Portland, Oregon, are Zillow's best markets for new college graduates.
• Miami and the New York City metro area are at the bottom of Zillow's rankings, largely due to affordability challenges.
• Rent affordability is tight in much of the country, which may make renting an individual room a savvy option for grads striking out on their own.

SEATTLE, May 30, 2024 /PRNewswire/ -- College seniors who visited Phoenix for last month's NCAA basketball championship might consider staying and putting down roots. Phoenix is the best market for this year's college grads, boasting the best combination of rental affordability and concessions, job prospects and neighbors in their 20s for the class of 2024 to start life's next chapter on a high note.

Albuquerque, Colorado Springs, San Antonio and Portland, Oregon, round out Zillow's top five markets for new college grads.

"The first move after college is an exciting milestone. Zillow's best markets for new grads are great places to kickstart a career and take the first steps of adulthood," said Anushna Prakash, economic research data scientist at Zillow. "Rents won't take up too much of a new grad's paycheck, leaving money to explore a new city or start saving up for a down payment. For renters who don't mind a housemate or two, renting a room can help save some extra cash and might even introduce lifelong friends."

Zillow's best markets for new college grads offer promising career opportunities as well as relatively affordable rentals. The analysis looks at rent affordability,¹ the share of rental listings on Zillow® offering a concession, job growth² and the share of the population ages 21–29.

Phoenix rose to the top largely on the strength of its job market, which is the second-strongest among the markets Zillow analyzed. Phoenix also ranked within the top 10 for the share of rental listings on Zillow offering a concession, such as a free month of rent or free parking (50.5%), helping to overcome relatively expensive rents. A college grad making Phoenix's median entry-level income would spend 34.5% of that on the typical Phoenix rental.

For new grads who consider affordable rent their top priority, Des Moines, Iowa, is the place to be. Des Moines placed No. 11 overall in Zillow's ranking, and took the top spot for rent affordability. A typical college grad can expect to spend less than a quarter of their income on the typical rental there.

New grads looking to score a deal on a rental can focus their search on Charlotte, which comes in at No. 14 overall. Fifty-seven percent of Charlotte rental listings on Zillow are offering a concession, more than any other market Zillow analyzed.

Zillow Rentals provides new grads with a wide range of rental options to suit every lifestyle and budget, from apartment buildings with a doorman to single-family rentals with private backyards. Additionally, Zillow recently introduced the option to search for individual rooms for rent, perfect for those looking to split costs with roommates and ease the financial burden as they enter the rental market.

Zillow's Top 10 Markets for New College Grads
Metro Area	Overall Rank	Rent Affordability*	Rent Affordability Ranking	Share of Pop. Ages 21– 29	Share of Pop. Ages 21–29 Ranking	Share of Rental Listings Offering a Concession (April 2024)	Concessions Ranking	Job Market Ranking
Phoenix, AZ	1	34.5 %	61	13.0 %	18	50.5 %	7	2
Albuquerque, NM	2	28.9 %	25	12.2 %	41	25.4 %	54	4
Colorado Springs, CO	3	32.9 %	55	13.9 %	6	36.5 %	29	12
San Antonio, TX	4	28.8 %	22	12.9 %	21	48.0 %	11	30
Portland, OR	5	29.0 %	26	12.0 %	46	39.3 %	23	80
Dallas, TX	6	31.6 %	42	12.9 %	20	48.7 %	9	54
Raleigh, NC	7	30.9 %	38	12.1 %	44	53.1 %	4	72
Denver, CO	8	34.0 %	60	13.5 %	8	46.9 %	13	71
Spokane, WA	9	28.2 %	16	11.8 %	57	30.4 %	39	18
Austin, TX	10	32.0 %	47	13.9 %	5	54.4 %	3	64

*Share of median entry-level income spent on typical rent

About Zillow Group:
Zillow Group, Inc. (Nasdaq: Z and ZG) is reimagining real estate to make home a reality for more and more people. As the most visited real estate website in the United States, Zillow and its affiliates help people find and get the home they want by connecting them with digital solutions, dedicated partners and agents, and easier buying, selling, financing and renting experiences.

Zillow Group's affiliates, subsidiaries and brands include Zillow®, Zillow Premier Agent®, Zillow Home Loans℠, Trulia®, Out East®, StreetEasy®, HotPads®, ShowingTime+℠, Spruce® and Follow Up Boss®.

All marks herein are owned by MFTB Holdco, Inc., a Zillow affiliate. Zillow Home Loans, LLC is an Equal Housing Lender, NMLS #10287 (www.nmlsconsumeraccess.org). © 2023 MFTB Holdco, Inc., a Zillow affiliate.

¹To determine rent affordability estimates, Zillow used each metro area's typical rent according to the Zillow Observed Rent Index and an estimate of recent college graduate wages using the Bureau of Labor Statistics' Occupational Employment and Wage Statistics dataset. Zillow analyzed jobs that require a bachelor's degree but no prior experience and took the 25th percentile of wages weighted by the employment of those jobs in the geographic area.

²Job growth data is provided by the Indeed Hiring Lab. It gives the percentage change in seasonally adjusted postings since February 1, 2020 for total job postings in U.S. metropolitan areas with a population of at least 500,000 people.

 

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SOURCE Zillow

FAQ

Why is Phoenix the best market for new college graduates in 2024 according to Zillow?

Phoenix offers a strong job market, relatively affordable rents, and a high percentage of rental concessions, making it ideal for new grads.

How much of their income do new grads in Phoenix spend on rent according to Zillow's analysis?

New grads in Phoenix spend approximately 34.5% of their median entry-level income on rent.

Which cities rank among the top five markets for new college graduates in 2024 according to Zillow?

According to Zillow, the top five markets are Phoenix, Albuquerque, Colorado Springs, San Antonio, and Portland, Oregon.

Which market offers the most affordable rent for new grads according to Zillow?

Des Moines, Iowa, offers the most affordable rent, with new grads spending less than a quarter of their income on rent.

What percentage of rental listings in Charlotte offer concessions according to Zillow?

In Charlotte, 57% of rental listings offer concessions, the highest percentage among the analyzed markets.