Colorado
Springs and Spokane named
best areas for recent college graduates in new Zillow study
analyzing rent-to-income ratio and job prospects
SEATTLE, May 24, 2023
/PRNewswire/ -- Colorado Springs,
Colorado, has been named Zillow's top market for college
grads in 2023, highlighting how, this year, markets with a smaller
population, relatively affordable rents and lots of career
prospects contribute to a high quality of life for individuals
beginning a new phase in their lives.
Trailing behind Colorado
Springs are Spokane,
Washington, and Des Moines,
Iowa — two relatively small markets with plenty of job
opportunities and lower rents than the national median.
To determine the ranking, Zillow created an index
combining1 each metropolitan area's
rent-to-income ratio, average salary for recent college graduates,
job openings and the share of the population in their 20s. The
analysis identifies cities that not only provide promising career
prospects but also ensure a manageable rent burden for fresh
graduates embarking on their next exciting chapter.
"Graduating from college and moving to a new city to start your
career is a major milestone. For many, it's a reality check when
they realize how much of their hard-earned paycheck goes straight
to rent," said Anushna Prakash, an economic data analyst at Zillow.
"Zillow's top markets for college grads are buzzing with abundant
job opportunities, a chance to connect with fellow 20-somethings,
and rent prices that allow more freedom to spend on nights out or
even start saving for a down payment. They're great places to
kick-start life's exciting next chapter."
Metro
|
Typical Rent
(Zillow
Observed Rent Index –
ZORI)
|
Average Salary
for
Recent College Grads
|
Rent-to-Income
Ratio
|
Colorado Springs,
CO
|
$
1,824
|
$
63,190
|
35 %
|
Spokane, WA
|
$
1,563
|
$
61,162
|
31 %
|
Des Moines,
IA
|
$
1,202
|
$
59,697
|
24 %
|
Phoenix, AZ
|
$
1,918
|
$
62,324
|
37 %
|
Buffalo, NY
|
$
1,257
|
$
59,929
|
25 %
|
Albuquerque,
NM
|
$
1,531
|
$
59,163
|
31 %
|
Bakersfield,
CA
|
$
1,767
|
$
66,195
|
32 %
|
Albany, NY
|
$
1,524
|
$
63,513
|
29 %
|
Portland, OR
|
$
1,856
|
$
71,618
|
31 %
|
Little Rock,
AR
|
$
1,199
|
$
51,294
|
28 %
|
Second-largest markets offer college grads a quality
life
Both Colorado Springs and
Spokane hold the distinction of
being the second-largest markets by population in their respective
states. These vibrant regions offer abundant job opportunities
along with rents that are more affordable than their larger metro
counterparts Denver and
Seattle. In Colorado Springs, the typical rent is
$1,824, compared to $2,031 in Denver. In Spokane, the typical rent is $1,563, compared to $2,223 in Seattle. College graduates flock to these
areas, seeking an excellent quality of life, outdoor recreation and
economic prospects at a reasonable cost. The two are also college
towns, anchored by UC-Colorado Springs and Gonzaga University, respectively, giving them a
head start at attracting 20-somethings when many recent graduates
stick around to start their careers.
Phoenix and Portland are the largest markets on the
list
Among the top metros, Phoenix
and Portland stand out as the
largest markets by population size. While their typical rents rank
highest on our top-10 list, Portland's generous average salary for recent
college grads offsets the higher living costs, ensuring a
relatively manageable rent-to-income ratio. Phoenix, on the other hand, takes the crown
for its abundance of job opportunities, surpassing all other
analyzed metro areas. When combined with factors such as the
vibrant population of 20-somethings and favorable rent-to-income
ratios, both Phoenix and
Portland emerge as exceptional
choices for recent graduates seeking a flourishing start to their
professional journeys.
Peak rental season is in full swing, and new college grads
looking to sign a lease only add to the competition for rentals.
The rental market can be expensive and competitive, but there are
steps first-time renters can take to make the process easier:
- Search smarter, not harder
-
- To save time on in-person tours, renters can take advantage of
virtual 3D Home tours and interactive property maps on many
apartment listings from the comfort of their own couch and avoid
wasting time touring rentals that are not a good fit.
- Once they decide they want to see something in person, renters
can automatically schedule tours in the same way they book
restaurant reservations — no need to wait for a response from the
property manager.
- Create a budget and explore options
-
- Once they land a job and know their salary, college grads
should also do research on their market to better understand what
they can expect to pay and if they should negotiate.
- Zillow has a rental market trends tool showing typical
rents, number of available units and market temperature down to the
ZIP code.
- Know a renter's rights
-
- Zillow's local legal protections tool provides information
about local laws that protect LBGTQ renters from housing
discrimination. It also includes information on local laws that
prevent housing discrimination based on the source of income used
to pay the rent, such as housing vouchers.
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, great partners, and
easier buying, selling, financing and renting
experiences.
Zillow Group's affiliates, subsidiaries and brands include
Zillow®; Zillow Premier Agent®; Zillow Home Loans℠; Zillow Closing
Services℠; Trulia®; Out East®; StreetEasy®; HotPads®; and
ShowingTime+℠, which includes ShowingTime®, Bridge
Interactive®, and dotloop®.
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.
1 In this analysis, Zillow used data
from the Zillow Observed Rent Index, the share of a population ages
21–29 from the Census, average salary for occupations that require
a bachelor's degree but no prior experience from the Bureau of
Labor Statistics, and job openings data from the Indeed Hiring
Lab.
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SOURCE Zillow