Dallas, Houston, and Austin rank among best U.S. cities for college graduates, study says
Three Texas cities rank among the best places in the U.S. for recent college graduates, according to a new analysis from Redfin and Glassdoor.
The list highlights strong job opportunities and relative affordability across the state’s largest metros.
Top Texas metros for new graduates
Students throw their mortarboards in the air during their graduation ceremony. (Credit: Christopher Furlong/Getty Images)
What we know:
Dallas, Houston and Austin all placed in the top 10 of the report. Redfin evaluated the cities based on housing affordability, career opportunities and quality of life for young adults who are looking to plant their roots in a new city.
Based off this ranking, Redfin and Glassdoor place Washington, D.C., at No. 1 overall, citing high early-career pay, strong job availability and favorable work-life balance.
Why Dallas ranks #1 in Texas for graduates
Skyline of downtown Dallas, TX on a partly cloudy day. (Photo by: HUM Images/Universal Images Group via Getty Images)
By the numbers:
Dallas ranked No. 4 overall, making it the highest-ranked Texas city on the list.
The report cites Dallas’ focus of major companies, including 24 Fortune 500 headquarters, as a key driver of job availability for early-career workers. The report noted Dallas' ability to offer a balance of solid starting salaries and moderate housing costs, along with a wide range of entertainment options. Here are the numbers according to Redfin and Glassdoor:
- Average early-career earnings: $67,451
- Price of typical starter home: $240,000
- Years to save for down payment: 4 years, 1 month
- Monthly mortgage payment as % of income: 28%
- Monthly rent as % of income: 26%
Relatively low cost of living in Texas
Dig deeper:
Houston followed at No. 6, with the analysis pointing to the region’s diverse economy and relatively low cost of living.
The downtown skyline is shown from the Chase Tower observation floor Tuesday, Sept. 7, 2021 in Houston. (Photo by Brett Coomer/Houston Chronicle via Getty Images)
The city’s industries range from aerospace and energy to health care, and housing costs remain more manageable than in many other large metros. Monthly rent accounts for about 18% of early-career income in Houston, one of the lowest shares among the top-ranked cities. Here are the numbers according to the report:
- Average early-career earnings: $65,369
- Price of typical starter home: $215,000
- Years to save for down payment: 3 years, 7 months
- Monthly mortgage payment as % of income: 25.9%
- Monthly rent as % of income: 18%
What's next:
Austin ranked No. 10, while supported by strong early-career earnings and a high level of job satisfaction among young workers.
The city’s economy is anchored by technology, health care and education, and it is known for its cultural amenities and outdoor recreation. The list refers to Austin as the "Live Music Capital of the World", and it's not for nothing. The Texas capital is home to music venues and nationally recognized festivals such as SXSW and Austin City Limits.
However, housing costs are higher than in Dallas and Houston, with rent consuming about 35% of early-career income, according to the report. According to Redfin and Glassdoor, here are the numbers:
- Average early-career earnings: $72,025
- Price of a typical starter home: $276,600
- Years to save for down payment: 4 years, 1 month
- Monthly mortgage payment as % of income: 30.3%
- Monthly rent as % of income: 35%
Other cities in the rankings
Why you should care:
Other cities in the top 10 include Omaha, Boston, Chicago, St. Louis, San Diego, and Miami.
Data sources included hundreds of thousands of Glassdoor salaries and employer reviews, millions of job postings and Redfin housing data.
The Source: Information in this article was provided by RedFin and Glassdoor.