Zillow (NASDAQ:Z, ZG) has dubbed Phoenix as the best housing market for this year’s college graduates.
Zillow analyzed the nation’s major metro markets to determine the best combination of rental affordability and concessions, job prospects and a population of twentysomethings. Phoenix topped the list due to a strong job market and a large percentage of rental listings on Zillow offering a concession, such as a free month of rent or free parking. Zillow added that a newly minted graduate making Phoenix’s median entry-level income would spend 34.5% of those earnings on a typical rental.
Anushna Prakash, economic research data scientist at Zillow, advocated rental housing for those transitioning from college to the working world.
“Rents won’t take up too much of a new grad’s paycheck, leaving money to explore a new city or start saving up for a down payment,” Prakash said. “For renters who don’t mind a housemate or two, renting a room can help save some extra cash and might even introduce lifelong friends.”
Albuquerque, Colorado Springs, San Antonio and Portland, Oregon, rounded out Zillow’s top five markets for new college graduates. Des Moines, Iowa, which ranked eleventh on Zillow’s list, was cited as the top spot for rent affordability – a typical college graduate can expect to spend less than a quarter of their income on the typical rental there, Zillow added.
Photo: Sean Pavone / iStock
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