• Zillow ranks Austin the best city for recent college graduates in 2025, driven by high early-career salaries, a high share of rental listings offering concessions, and a vibrant young adult population.
• Texas dominates the 2025 rankings. Austin, Dallas (No. 3), and San Antonio (No. 4) all rank in the top five. 
• Charlotte saw one of the biggest year-over-year jumps, climbing nine spots to No. 5. Affordable Albuquerque held onto its No. 2 spot.

Zillow’s 2025 list of the best markets for recent college graduates is out, and this year’s top destinations offer a winning mix of affordable living, strong job markets, and vibrant young communities. Leading the pack is Austin, thanks to high average starting salaries and a generous share of rentals offering concessions. Rounding out the top five are Albuquerque, Dallas, San Antonio, and Charlotte. 

These rankings combine several metrics that matter to new graduates navigating the transition from campus to career: rental affordability when considering the average early-career salary, the share of rental listings on Zillow offering a concession, and plenty of peers in their 20s. 

Compared to last year’s list, 2025 sees Austin and Charlotte making major leaps into the top five, each jumping nine spots. Albuquerque and San Antonio held steady at No. 2 and No. 4, respectively, while Dallas crept up a few spots to land at No. 3. 

1. Austin, Texas

• Typical Rent: $1,767
• Average Income for Recent Grads: $70,602
• Share of Rental Listings Offering a Concession: 61%

Austin jumped nine spots to claim the crown in 2025. With starting salaries for recent grads on the high end, Austin continues to be a magnet for young professionals. Austin ranks fourth of the markets analyzed for the highest share of residents in their 20s. More than 6 in 10 Austin rental listings on Zillow are offering a concession, second-most of any market included in the analysis. 

2. Albuquerque, New Mexico

• Typical Rent: $1,614
• Average Income for Recent Grads: $67,391
• Share of Rental Listings Offering a Concession: 41%

Holding steady in the No. 2 spot, Albuquerque remains a sleeper favorite for new grads. It offers affordable rents and one of the most favorable job market scores among all metros. While fewer rentals come with concessions compared to other high-ranking markets, overall affordability helps keep Albuquerque near the top.

3. Dallas, Texas

• Typical Rent: $1,793
• Average Income for Recent Grads: $69,559
• Share of Rental Listings Offering a Concession: 55%

Dallas climbed three spots this year, boosted by a healthy dose of rental listings on Zillow offering concessions to help renters find value. Even with a slightly higher rent burden on average than other top markets, the high share of residents in their 20s helped keep Dallas near the top of the list. 

4. San Antonio, Texas

• Typical Rent: $1,503
• Average Income for Recent Grads: $63,278
• Share of Rental Listings Offering a Concession: 51%

San Antonio stays put at No. 4, buoyed by some of the most affordable rents among top-ranked markets. With nearly 13% of residents in their 20s — 12th most of the markets analyzed — and a moderate average rent burden of 28%, San Antonio can provide a solid foundation for new grads. 

5. Charlotte, North Carolina

• Typical Rent: $1,815
• Average Income for Recent Grads: $68,086
• Share of Rental Listings Offering a Concession: 61%

Charlotte breaks into the top five this year with an impressive nine-spot climb. The average rent burden in Charlotte is highest of any top-five market, but 61% of rental listings on Zillow are offering a concession, the most of all markets analyzed. This signals there are deals to be had for renters, at least in the short term. 

Methodology

Zillow’s ranking of the best markets for recent college graduates is based on five factors: 

• Rent affordability: Determined by using each metro area’s typical rent according to the Zillow Observed Rent Index (ZORI) and an estimate of recent college graduate wages, this represents the share of income a recent college graduate can expect to spend on a new rental.
• Rent concessions: The share of rental listings on Zillow in each metro area that offered at least one concession, such as a free month’s rent or free parking, as of June 2025.
• Recent graduate incomes: Derived using the Bureau of Labor Statistics’ Occupational Employment and Wage Statistics, 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.
• Job openings: The percentage change in seasonally adjusted postings since February 1, 2020 for total job postings in U.S. metro areas with a population of at least 500,000 people. Data is provided by the Indeed Hiring Lab.
• Share of 20-something residents: The share of the population ages 21-29, calculated from data from the American Community Survey (ACS).

The index is a composite measure of these factors, standardized across the available geographies and capping outlier values. Metros with lower rent affordability are upweighted, and the share of 20-something residents are downweighted in the final index.