Finals are in the past and graduation was weeks ago. Now comes the real test – where are you going to live? It’s near impossible to start your full-time job search without knowing exactly where you’re going to land your feet. Even if you plan to take the summer off, now is the time to make plans.
Post-college, most are faced with high student loan debts and little savings left. But don’t jump to the cheapest place quite yet – living in a larger metro might offer more job opportunities and higher wages, which sometimes offsets the high cost of renting. Then again, sometimes it doesn’t.
Trulia teamed up with LinkedIn to help rank the top metros for new grads, using LinkedIn New Grad Job Scores, which ranks metros by share of open positions suitable for new grads, Trulia’s New Grad Affordability Score, or the share of rental units considered affordable based on median salary and, finally, the share of total population between 22 and 30 years old with a college degree.
Here are some of the best, worst and mixed markets for recent grads.
Pittsburgh
As the number one city for recent grads, Pittsburgh has it all. The LinkedIn New Grad Job Score is highest at 1.00, 91.8 percent of homes are affordable and 5.3 percent of the population is new grads. All of these factors give Pittsburgh a Graduate Opportunity Index of 0.85 – the highest in the U.S. Before you make the move, know the Pittsburgh rentals run a median $1,200 per month and the average college grad makes $30,000 per year.
Indianapolis
With an index of 0.8, Indianapolis is the second best city for new grads. LinkedIn’s score for new grad jobs comes in at .94, while the population of 22 to 30 year olds is 4.3 percent. If you’re stuck deciding between the top two, keep in mind the share of affordable homes in Indianapolis is slightly higher than Pittsburgh at 93.5 percent. With a median rent of $1,275 per month, Indianapolis renters find financial relief amidst the costly big cities. The average college grad income is $32,000 per year.
Miami
The allure is strong, but data shows Miami is the weakest market for the Class of 2016. Miami’s Graduate Opportunity Index is a mere .19, comprised of a feeble LinkedIn job score for new grads (.69) plus a low percent of affordable homes (43.4 percent). The population of new grads is only 3.2 percent, so you might find difficulty renting a roommate to offset the median $2,000 per month for Miami rental homes. Plus, the average college grad income is low at just $24,000 per year.
LA
Although there is something to be said about moving to LA to pursue an acting career, many degrees lack opportunities near Hollywood. LinkedIn’s New Grad Job Score for LA matches Miami’s at .69, but affordability tanks with only 17.7 percent of homes. Similar to other major metros, LA’s population is made of 4.2 percent new grads. But, the steep cost of renting in LA at a median $2,695 per month, combined with a low average income of $26,800 per year, might make you think twice.
San Francisco
The Bay Area gets a reputation for being a booming tech field filled with opportunity. While true, living in the City by the Bay doesn’t come cheap. The median rent in San Francisco is exorbitant at $4,500 per month. Nonetheless, high housing prices don’t place San Francisco in the top 10 weakest markets, especially since the income for new grads is highest at $48,000 per year. While only 28.1 percent of homes are affordable, the population of new grads is high at 9.1 percent.
If you’re searching for a new locale after graduation, Pittsburgh and Indianapolis are your best choices while Miami and LA are best to avoid. San Francisco, while costly, provides strong wages and job opportunity. Ultimately, lifestyle factors, family and friends play a large part – but hopefully with opportunity and affordability in mind.
