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Rental affordability has significantly improved for recent college graduates across the United States in 2024. Driven by a combination of softening rents and rising wages, the typical graduate can now afford rent with a roommate in most major metropolitan areas without being cost-burdened. This analysis, based on recent market data, reveals a positive shift from the challenging conditions of 2023, though living alone remains financially difficult in many coastal cities.
A common benchmark for housing affordability is the 30% rule, which suggests that a household should spend no more than 30% of its gross income on rent and utilities to avoid being considered rent burdened. Spending above this threshold can strain budgets, limiting funds for other essentials like savings, food, and transportation. The data in this article applies this rule to the estimated incomes of recent college graduates.
Nationwide, the financial pressure has eased for graduates willing to share a two-bedroom apartment. The typical recent graduate would need to spend 20.6% of their income to rent the median-priced two-bedroom unit ($1,725 per month), assuming even rent split with one roommate. This marks a significant improvement from 2023, when the figure was 22.6%.
This positive trend is most notable in previously unaffordable markets. Three major California metros flipped from "rent burdened" to "affordable" for graduates with roommates:
This shift is attributed to high local salaries—San Jose grads have the highest estimated income at $108,499—combined with year-over-year declines in median asking rents.
While the situation is better, living alone remains a financial challenge. The typical recent U.S. college graduate would need to spend 35.7% of their income on the median-priced zero-to-one-bedroom apartment ($1,495 per month), placing them squarely in the rent-burdened category, though this is down from 39% in 2023.
Austin, Texas, stands out as a notable exception. It is the only metro area that became affordable for solo living, with the required income share dropping to 28.3% from 35.2% last year. This is largely due to a substantial 12.6% year-over-year decrease in median rents.
The following table summarizes rental affordability for recent college graduates in major U.S. metropolitan areas, based on an analysis of 33 markets. A green cell indicates the typical graduate is not rent burdened (≤30% of income), while a red cell indicates they are rent burdened (>30%).
| Metropolitan Area | % of Income for 2-Bed with Roommate | % of Income for 0-1-Bed Alone |
|---|---|---|
| Cincinnati, OH | 16.9% | 29.9% |
| Houston, TX | 17.2% | 27.0% |
| Austin, TX | 17.2% | 28.3% |
| Detroit, MI | 17.3% | 27.8% |
| Indianapolis, IN | 18.5% | 31.7% |
| ... | ... | ... |
| Boston, MA | 31.7% | 54.8% |
| Riverside, CA | 32.3% | 54.4% |
| San Diego, CA | 32.6% | 53.7% |
| New York, NY | 35.3% | 56.2% |
| Los Angeles, CA | 35.9% | 54.9% |
The most affordable markets for solo living are primarily in the Midwest and Texas, while the least affordable are concentrated in major coastal cities like New York and Los Angeles, where graduates would need to spend over 50% of their income to live alone.
Based on our experience assessment of the current rental market, recent college graduates can use this data to make more informed decisions. The most impactful way to improve affordability is to consider having a roommate, which makes living in many major metros financially feasible. Furthermore, expanding your job search to include cities in the Midwest and South can significantly increase your ability to live independently without being rent-burdened. While the market has improved, it is crucial to budget carefully and understand that high housing costs in certain regions may require compromises on living arrangements.
