Austin, Texas, is the best city for recent graduates this year, thanks to high beginning salaries, an abundant supply of apartments and a vibrant social scene, according to a new report from Zillow.
The real estate website’s 2025 list of the best cities for college graduates had a strong Sun Belt theme. Texas dominated the top five choices of the survey, with first-place Austin being followed by Dallas at No. 3 and San Antonio at No. 4. Rounding out the top five are Albuquerque, N.M., in second place and Charlotte, N.C., in fifth place.
Zillow’s rankings combine rental affordability and the share of rental listings on Zillow offering concessions. The report also considers the strength of the local job market and the size of the local population in their 20s.
Austin rose nine spots this year to No. 1, and Zillow writes that the city continues to be a “magnet for young professionals.” The survey found that typical monthly rents in Austin are $1,767, while the average annual salary for recent graduates is $70,602.
About 61% of rental listings in Austin were offering some form of concession. The city, known for its music scene and as a technology hub, ranked fourth overall in the share of residents in their 20s. While rents are not cheap, more than 6 out of 10 rental listings are offering a concession, the second most of the markets analyzed.
Albuquerque, which was also in second place on last year’s list, was considered a “sleeper favorite” for new graduates, offering relatively affordable monthly rents at an average of $1,614, and an average starting income of $67,391. Dallas rose from sixth place last year to the third spot this year, in part because of its 55% of rental listings offering concessions. Rents average $1,793 and starting incomes are strong at $69,559.
San Antonio offers the cheapest average rents among the top five cities at $1,503. Nearly 13% of the city’s residents are in their 20s, the 12th most among the markets analyzed, and the average income for recent graduates is $63,278.
Charlotte moved up nine spots this year to reach No. 5. While rents are the highest among the top five cities at $1,815, slightly more rental listings than Austin were offering concessions — the highest percentage of all markets analyzed — signaling that cheaper rental prices can be negotiated.
