50 Most Affordable Places to Live for Recent College Grads – 2025
October 18, 2024
I’m sitting in a coffee shop in a small town suburb of Pittsburgh, Pennsylvania, listening to two men in their 60s and 70s confirm for one another that “the world isn’t the way that it was when you and I were younger.” They’re talking about rent prices. They’re talking about hiring and employing young people. Yes, I want to tell them: things are very different. Even if Pittsburgh is routinely ranked as one of the most affordable places to live for recent college grads.
All people—but new college grads in particular—are doing some complicated math to figure out where they can live in 2024. Rent is high. The cost of living is high. The post-pandemic job market is pretty stable, but if you’re out there looking, I don’t have to tell you that getting your dream job is super competitive.
That means that, for first-time job-seekers and apartment renters, it can be crucial to optimize for a job that pays you enough and a rental market that doesn’t rake you over the coals.
What’s up with rent prices?
American renters need to earn at least $66,000 annually in order to afford the median price for an apartment. But the typical U.S. renter pulls down only $54,700 every year. That means they’re missing about $11,300 every year that would make their situation “economically healthy,” according to recent data released from the real estate brokerage company RedFin.
It’s long become a part of commonsense that a person’s housing costs should account for no more than one-third of their overall income. Financial experts have been touting that little piece of wisdom for decades. But, unfortunately, only 39% of renters in the United States can afford to keep rent at or below that 30% mark, RedFin notes.
Earning more and spending (comparatively) less
So, how can recent college grads save themselves a buck or two?
If you’re not tied to a specific city or region, you can start searching for jobs in states and cities where the rent is low and the wages are high enough that you can pay a third (or even less!) of your income on rent.
While it’s not always the case, if you can generally keep your rent within that category, you should be able to maintain reasonable levels of spending on your other expenses, like food, transportation, and entertainment.
Luckily for us, there are people out there crunching the numbers to help figure out which cities are in that “optimal range” for high enough wages, low enough rent, and a job market where young professionals can get their foot in the door and start a career.
The ADP Research Institute—an arm of the folks who make the payroll management systems—has created a robust system for ranking cities for new graduates. The system takes into account the following metrics:
- Annual wage estimate
- Nation-to-metro cost of living ratio
- Affordability adjusted annual wage
- Hiring rate
What do these categories mean? Let’s break it down.
Annual wage estimate
The annual wage estimate is how much a person is slated to make in a specific city (or metro area) every year. The wages have been estimated for jobs requiring a bachelor’s degree or equivalent, where the workers are people ages 20 to 29.
Nation-to-metro cost of living ratio
This number takes into account how the cost of living in any particular city compares to the average national cost of living. If a city’s nation-to-metro cost of living ratio is low, that means your dollar will go a bit further there compared to the national average—especially if you can pull down a competitive salary.
Affordability adjusted annual wage
ADP divides the city’s wages by the above figure (nation-to-metro cost of living ratio) and creates an affordability figure that relates how far your dollar will go in any given city.
Hiring rate
How likely are you to get hired in the city of your choice? The higher the hiring rate, the more likely new graduates are going to be able to be employed.
The overall rankings
ADP then analyzed these factors in concert in order to understand how likely it would be for a new grad to get a job, how much money they might stand to gain, and how far their dollar would go, creating a ranking that takes all of these factors into account. The higher the city is on the list, the better it did when all of these factors were weighed against one another.
It remains to be said that, while some cities fare better than others overall, this doesn’t mean that a new grad wouldn’t be able to find a job in one of these towns or metro areas—or that they would be completely unlivable if they’re farther down on the list.
We’ve pulled the to 50 from the ADP rankings in order to showcase just how diverse the options are. You might be surprised to see that there are more obviously expensive, traditional “big cities” on the list next to up-and-coming smaller metro areas with more focused labor sectors. You’ll see quieter, Midwestern towns ranking above and below bustling, coastal cities. The best way to use this information is to add it to your considerations about where you’d like to move, work, and live after graduation—in addition to other concerns, like the companies you’d like to work for, where your friends and family live, and what kind of life you’d like to lead. If you absolutely cannot see yourself living in Cleveland, Ohio (no shade), then it doesn’t matter that it’s 8th on the list.
Most Affordable Places to Live for Recent College Grads (Continued)
As you work your way through the list, you’ll see how the different factors play into the overall ranking of each metro area. Just remember: even if you see a city near the top of the list, a city that ranks differently for you might be better in terms of proximity to family, friends, and the kind of culture in which you want to live.
At the end of the day, ADP confirms what those two guys in the cafe were saying. Things are harder for new graduates these days. “Recent college graduates today will have to search harder than they did a few years ago for jobs that align with their education. They’ll also have to search harder than people the same age who are seeking jobs with fewer requirements,” they write. All the more reason to have some data at-hand to help you make the best decision possible.
Most Affordable Places to Live for Recent College Grads
1) Raleigh, North Carolina
- Affordability adjusted wage: $52,857
- Hiring rate: 5%
With a low cost of living as compared to the national average, Raleigh, NC, is the most workable and livable city for new college grads right now. It’s the capital city of North Carolina and is connected to North Carolina State University. With its proximity to Chapel Hill and Durham, Raleigh makes up part of the “Research Triangle,” which makes it comparatively easier to land your first job here.
2) Baltimore-Columbia-Towson, Maryland
- Affordability adjusted wage: $50,767
- Hiring rate: 3.4%
Your dollar will still go a long way in the most populated city in the state of Maryland. The city plays home to the Social Security Administration, Under Armor, Johns Hopkins University, the University of Maryland, and various financial institutions, along with all of the support businesses that help feed those larger employers.
Most Affordable Places to Live for Recent College Grads (Continued)
3) Austin-Round Rock, Texas
- Affordability adjusted wage: $57,522
- Hiring rate: 2.7%
With employers like H-E-B, Tesla, Dell, Apple, Amazon, and the University of Texas at Austin, this metro area boasts tons of job possibilities for new grads while connecting Austinites to huge cultural events like the SXSW Festival.
4) Atlanta-Sandy Springs-Roswell, Georgia
- Affordability adjusted wage: $50,631
- Hiring rate: 2.9%
There are 17 Fortune 500 companies that make their home in the Atlanta metro area, including AT&T, Children’s Healthcare of Atlanta, and Cox Enterprises. The birthplace of Coca-Cola is known for its diverse arts and music scene, with everything from the Atlanta Symphony Orchestra to some of the freshest hip-hop and R&B.
Most Affordable Places to Live for Recent College Grads (Continued)
5) Charlotte-Concord-Gastonia, North/South Carolina
- Affordability adjusted wage: $51,606
- Hiring rate: 2.8%
Atrium Health, Wells Fargo, Bank of America, and American Airlines are all major employers in the greater Charlotte metro area. With a population of just under 900,000, the city of Charlotte itself ranks as the eighth most diverse city in America.
6) New York-Newark-Jersey City, New York/New Jersey/Pennsylvania
- Affordability adjusted wage: $53,075
- Hiring rate: 2.6%
Okay, we already know that the rent is too damn high in the concrete jungle where dreams are made of. But! If you play your cards right, you still might be able to pull down enough money to make it work (or just live with eight roommates). Jokes aside, there’s still nothing like the opportunities available to young professionals in New York. If you love the city, why not shoot your shot?
Most Affordable Places to Live for Recent College Grads (Continued)
7) San Francisco-Oakland-Hayward, California
- Affordability adjusted wage: $58,221
- Hiring rate: 2.4%
I know what you’re thinking. New York and San Francisco, back-to-back? These are two notoriously expensive places. But again, if you can pull down a solid early career position (think: Silicon Valley), it might come with just enough pay to put you where you need to be to strike out in SF. The area is undeniably gorgeous with access to so much nature, art, culture, music, and food that it would be hard to pass up the opportunity to jumpstart your career in the Bay Area.
8) Cleveland-Elyria, Ohio
- Affordability adjusted wage: $49,166
- Hiring rate: 2.8%
Cleveland seems more like it, right? Your dollar is going to go a lot further in Cleveland, that’s for sure. If you can land a nice job in healthcare—let’s say, at the Cleveland Clinic or University Hospitals, for example—you could really save some money in this low cost-of-living city.
Most Affordable Places to Live for Recent College Grads (Continued)
9) Nashville-Davidson-Murfreesboro-Franklin, Tennessee
- Affordability adjusted wage: $51,771
- Hiring rate: 2.6%
Vanderbilt University Medical Center is Nashville’s largest employer, followed by Nissan and HCA Holdings. But Nashville has been recently ranked near the top of many lists for “small business friendliness” and “best cities for young workers.” This hip, vibrant, musically-driven area connects you to the outdoors while giving new grads their first foot in the door.
10) Indianapolis-Carmel-Anderson, Indiana
- Affordability adjusted wage: $51,052
- Hiring rate: 2.6%
A major hub for logistics, manufacturing, and information technology, as well as life science, agribusiness, and sports, the Indianapolis metro area is not something to sleep on. It’s centrally located in the Midwest, so if you’re from that region, you can easily travel to see family and friends in different cities. Eli Lilly, Cummins, and Salesforce are all big employers that help make this corner of Indiana a powerhouse for new college graduates.
The top 50 cities on the list, including cities in Colorado and Florida, follows below!
Most Affordable Places to Live for Recent College Grads (Continued)
11) Denver-Aurora-Lakewood, Colorado
12) Detroit-Warren-Dearborn, Michigan
13) Washington-Arlington-Alexandria, D.C./Virginia/Maryland
14) San Jose-Sunnyvale-Santa Clara, California
15) Louisville-Jefferson County, Kentucky/Indiana
16) Miami-Fort Lauderdale-West Palm Beach, Florida
17) Dallas-Fort Worth-Arlington, Texas
18) Providence-Warwick, Rhode Island/Massachusetts
19) Columbus, Ohio
20) Birmingham-Hoover, Alabama
Most Affordable Places to Live for Recent College Grads (Continued)
21) Houston-The Woodlands-Sugar Land, Texas
22) Boston-Cambridge-Newton, Massachusetts/New Hampshire
23) Tampa-St. Petersburg-Clearwater, Florida
24) Orlando-Kissimmee-Sanford, Florida
25) Milwaukee-Waukesha-West Allis, Wisconsin
26) Las Vegas-Henderson-Paradise, Nevada
27) Sacramento–Roseville–Arden-Arcade, California
28) Jacksonville, Florida
29) Tucson, Arizona
30) Cincinnati, Ohio
Most Affordable Places to Live for Recent College Grads (Continued)
31) St. Louis, Missouri
32) Chicago-Naperville-Elgin, Illinois
33) Minneapolis-St. Paul-Bloomington, Minnesota/Wisconsin
34) Kansas City, Missouri/Kansas
35) San Antonio-New Braunfels, Texas
36) Tulsa, Oklahoma
37) Buffalo-Cheektowaga-Niagara Falls, New York
38) Riverside-San Bernardino-Ontario, California
39) Richmond, Virginia
40) Pittsburgh, Pennsylvania
Most Affordable Places to Live for Recent College Grads (Continued)
41) Los Angeles-Long Beach-Anaheim, California
42) San Diego-Carlsbad, California
43) Philadelphia-Camden-Wilmington, Pennsylvania/New Jersey/Delaware
44) Phoenix-Mesa-Scottsdale, Arizona
45) Grand Rapids-Wyoming, Michigan
46) Salt Lake City, Utah
47) Seattle-Tacoma-Bellevue, Washington
48) Memphis, Tennessee
49) Hartford-West Hartford-East Hartford, Connecticut
50) Oklahoma City, Oklahoma
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