50 Most Affordable Places to Live for Recent College Grads – 2025
October 18, 2024
I鈥檓 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 鈥渢he world isn鈥檛 the way that it was when you and I were younger.鈥� They鈥檙e talking about rent prices. They鈥檙e talking about hiring and employing young people.听 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鈥攂ut new college grads in particular鈥攁re 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鈥檙e out there looking, I don鈥檛 have to tell you that getting your dream job is super competitive.听
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鈥檛 rake you over the coals.听
What鈥檚 up with rent prices?聽
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鈥檙e missing about $11,300 every year that would make their situation 鈥渆conomically healthy,鈥� according to recent data released from the real estate brokerage company .听
It鈥檚 long become a part of commonsense that a person鈥檚 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.听
Earning more and spending (comparatively) less聽
So, how can recent college grads save themselves a buck or two?
If you鈥檙e 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.听
While it鈥檚 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.听
Luckily for us, there are people out there crunching the numbers to help figure out which cities are in that 鈥渙ptimal range鈥� 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.听
The ADP Research Institute鈥攁n arm of the folks who make the payroll management systems鈥攈as created a robust system for ranking cities for new graduates. The system takes into account the following metrics:聽
- Annual wage estimate聽
- Nation-to-metro cost of living ratio聽
- Affordability adjusted annual wage聽
- Hiring rate聽
What do these categories mean? Let鈥檚 break it down.听
Annual wage estimate聽
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鈥檚 degree or equivalent, where the workers are people ages 20 to 29.听
Nation-to-metro cost of living ratio聽
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鈥檚 nation-to-metro cost of living ratio is low, that means your dollar will go a bit further there compared to the national average鈥攅specially if you can pull down a competitive salary.听
Affordability adjusted annual wage聽
ADP divides the city鈥檚 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.听
Hiring rate聽
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.听
It remains to be said that, while some cities fare better than others overall, this doesn鈥檛 mean that a new grad wouldn鈥檛 be able to find a job in one of these towns or metro areas鈥攐r that they would be completely unlivable if they鈥檙e farther down on the list.听
We鈥檝e 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 鈥渂ig cities鈥� on the list next to up-and-coming smaller metro areas with more focused labor sectors. You鈥檒l 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鈥檇 like to move, work, and live after graduation鈥攊n addition to other concerns, like the companies you鈥檇 like to work for, where your friends and family live, and what kind of life you鈥檇 like to lead. If you absolutely cannot see yourself living in Cleveland, Ohio (no shade), then it doesn鈥檛 matter that it鈥檚 8th on the list.听
Most Affordable Places to Live for Recent College Grads (Continued)
As you work your way through the list, you鈥檒l 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.听
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. 鈥�Recent college graduates today will have to search harder than they did a few years ago for jobs that align with their education. They鈥檒l also have to search harder than people the same age who are seeking jobs with fewer requirements,鈥� they . All the more reason to have some data at-hand to help you make the best decision possible.听
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鈥檚 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 鈥淩esearch Triangle,鈥� which makes it comparatively easier to land your first job here.
2)听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)听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)听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鈥檚 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)听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)听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 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鈥檚 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)听San Francisco-Oakland-Hayward, California
- Affordability adjusted wage: $58,221
- Hiring rate: 2.4%
I know what you鈥檙e 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.听
8)听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鈥檚 for sure. If you can land a nice job in healthcare鈥攍et鈥檚 say, at the Cleveland Clinic or University Hospitals, for example鈥攜ou could really save some money in this low cost-of-living city.
Most Affordable Places to Live for Recent College Grads (Continued)
9)听Nashville-Davidson-Murfreesboro-Franklin, Tennessee
- Affordability adjusted wage: $51,771
- Hiring rate: 2.6%
Vanderbilt University Medical Center is Nashville鈥檚 largest employer, followed by Nissan and HCA Holdings. But Nashville has been recently ranked near the top of many lists for 鈥渟mall business friendliness鈥� and 鈥渂est cities for young workers.鈥� This hip, vibrant, musically-driven area connects you to the outdoors while giving new grads their first foot in the door.
10)听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鈥檚 centrally located in the Midwest, so if you鈥檙e 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聽
12) Detroit-Warren-Dearborn, Michigan聽
13) Washington-Arlington-Alexandria, D.C./Virginia/Maryland聽
14) San Jose-Sunnyvale-Santa Clara, California聽
15) Louisville-Jefferson County, Kentucky/Indiana聽
16) Miami-Fort Lauderdale-West Palm Beach, Florida聽
17) Dallas-Fort Worth-Arlington, Texas聽
18) Providence-Warwick, Rhode Island/Massachusetts聽
19) Columbus, Ohio聽
20) Birmingham-Hoover, Alabama聽
Most Affordable Places to Live for Recent College Grads (Continued)
21) Houston-The Woodlands-Sugar Land, Texas聽
22) Boston-Cambridge-Newton, Massachusetts/New Hampshire聽
23) Tampa-St. Petersburg-Clearwater, Florida聽
24) Orlando-Kissimmee-Sanford, Florida聽
25) Milwaukee-Waukesha-West Allis, Wisconsin聽
26) Las Vegas-Henderson-Paradise, Nevada聽
27) Sacramento鈥揜oseville鈥揂rden-Arcade, California聽
28) Jacksonville, Florida聽
29) Tucson, Arizona聽
30) Cincinnati, Ohio聽
Most Affordable Places to Live for Recent College Grads (Continued)
31) St. Louis, Missouri聽
32) Chicago-Naperville-Elgin, Illinois聽
33) Minneapolis-St. Paul-Bloomington, Minnesota/Wisconsin聽
34) Kansas City, Missouri/Kansas聽
35) San Antonio-New Braunfels, Texas聽
36) Tulsa, Oklahoma聽
37) Buffalo-Cheektowaga-Niagara Falls, New York聽
38) Riverside-San Bernardino-Ontario, California聽
39) Richmond, Virginia聽
40) Pittsburgh, Pennsylvania聽
Most Affordable Places to Live for Recent College Grads (Continued)
41) Los Angeles-Long Beach-Anaheim, California聽
42) San Diego-Carlsbad,聽 California聽
43) Philadelphia-Camden-Wilmington, Pennsylvania/New Jersey/Delaware聽
44) Phoenix-Mesa-Scottsdale, Arizona聽
45) Grand Rapids-Wyoming, Michigan聽
46) Salt Lake City, Utah聽
47) Seattle-Tacoma-Bellevue, Washington聽
48) Memphis, Tennessee聽
49) Hartford-West Hartford-East Hartford, Connecticut聽
50) Oklahoma City, Oklahoma聽
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