5 top US cities that recent grads are flocking to

Over the past few years, recent graduates have been entering a job market in constant state of flux. Be it due to economic anxiety, shifting perspectives on remote work, or generational differences, young workers looking to start their careers seem to be having a rougher go than their predecessors. It’s been nearly five years since the pandemic rocked the working world, but it seems the ripple effect has not stopped changing the landscape. Recent graduates are up against class gatekeeping when it comes to unpaid internships, the disappearance of entry-level roles, and intense recruitment processes to sort through the highly competitive talent pool.

Recently, it seemed that the rise of remote work was going to usher in a mass exodus from metropolitan areas as workers traded in long commutes and skyrocketing rents for less urban lifestyles with fewer costs attached. However, that didn’t quite happen. According to JLL’s Talent Hubs survey tracking the migration trends of the Class of 2024, the majority of graduates are still flocking to major urban centers. So, let’s break down some of the most alluring destinations for recent graduates, the factors that draw them there, and most importantly, the reality of life as a young, metropolitan worker.

What are graduates looking for?

Most people don’t choose where they want to start their professional lives on a whim. The cities young workers are moving to aren’t popular by chance, so what is attracting new residents? Whether recent graduates want to stay close to their university, seek out lower costs of living, or improve their quality of life, there are plenty of things to consider when deciding where to live. Let’s take a look at some crucial factors.

Location

Obviously, location is a key part of choosing where to start your career, but it’s more complex than it may appear. Unsurprisingly, proximity to their alma mater was one of the biggest drivers in where recent graduates wound up after earning their diplomas. The research explains this phenomenon using two factors: talent engines and talent magnets. Talent engines are cities or towns with a large university presence, generating graduates ready to enter the workforce. Talent magnets are large metro areas with a robust job market. When these two factors combine it creates a positive feedback loop, attracting and retaining top talent.

Unsurprisingly, the location of family and friends also plays a part in where new workers choose to live. While graduation once marked the beginning of independence for young adults, things are less black and white now. Since the pandemic sent millions of students and young workers back into their childhood bedrooms to ride out lockdown in a more comfortable setting, the stigma around adults living at home has dissipated for younger generations. In fact, 45% of young adults (aged 18 to 29) continue to live at home, the highest percentage since the Great Depression.

Cost of living

In today’s economy, the cost of living is top of mind for most Americans, but especially recent graduates who are often burdened with high debt-to-income ratios. Between massive student debt, runaway inflation, and rising rents, a meager entry-level salary often isn’t enough to cut it, if you’re lucky enough to find a job to begin with. According to JLL, the Class of 2024 is weighing the cost of living more heavily than past graduates, especially when it comes to housing prices.

After following the rulebook and getting their degree, they aren’t reaping the rewards that they were promised, with only 67% of graduates believing that they can find a job in their industry and 59% fearing they won’t be able to cover basic living expenses.

Quality of life

Money is important, but so is culture. People don’t want to live somewhere with no museums, bars, restaurants. More affordable cities that still have cultural things to do. Like-minded people and political views.

Money talks, but it isn’t the only factor when constructing your preferred lifestyle. No US city is a monolith, but it’s obvious that more metropolitan areas will have more variety and opportunity for young workers to live the life that they imagine for themselves outside of the home and the office. It would be great to pay peanuts for housing and put your salary into savings or travel, but that might get old if your city or neighborhood doesn’t have restaurants, museums, arenas, clubs, or parks where you can spend time and build connections with your friends and family.

Sure, you may not need to spend every weekend going to vintage pop-ups or gallery openings, but maybe you’re part of the 75% of Americans who prefer public transport over driving a car. That slashes your relocation options down to about two or three cities.

1. New York

The city so nice they named it twice. Who hasn’t fantasized about working at their dream job in Manhattan before coming home to their charming, affordable brownstone apartment and brunching with friends every weekend? Maybe this was attainable in the 90s, but young New Yorkers face a different reality today.

There’s no denying that NYC is one of the biggest job markets in the United States, if not the world. However, that same appeal is what makes it so highly competitive, not only when it comes to finding work but to carving out a life there. The average salary for workers aged 25 to 34 in New York is around $52,000. Using the rule of thumb that your income should be 40 times your monthly rent, that would give you around $1,300 per month to spend on housing. Hopefully, you don’t mind living with a roommate or three, because the average rent in NYC is over $3,000 per month for a studio and more than $6,500 for a three-bedroom.

2. Los Angeles

Coming in second is the City of Angels. If the cold winters and cramped apartments of NYC aren’t for you, why not enjoy the sunny beaches of LA? Like New York, Los Angeles is also host to a few elite universities and the heart of a large industry. For recent graduates looking to pursue a career in film, production, talent management, entertainment law, or any of the hundreds of professions anchored in Hollywood, there is really no other option when it comes to choosing a city. While workers in other fields can often find smaller markets where they would be doing the same work, the entertainment industry is concentrated in LA, constituting 3% of the city’s entire workforce.

3. San Francisco

While San Francisco may not be as large of a market, it is still situated between two elite universities. It is also the heart of the tech industry, with Silicon Valley just south of the city. While it seemed that the tech industry has been leaving the area in recent years, with a few tech giants moving to new hubs like Austin, the Bay Area is still the place to be for anyone in tech. Being home to nearly 50% of all big tech employees, the industry is still clearly alive and well in the Golden State.

4. Boston

Another smaller city that tops the list, Boston is also nestled among some of the country’s most prestigious universities. With a steady stream of Ivy League graduates and an unemployment rate that falls below the national average, Boston is an attractive option for many young workers. However, despite its smaller size, it still ranks alongside NYC and Los Angeles as one of the most expensive cities in America.

5. Chicago

As the only non-coastal city to top the list, Chicago has much to offer for recent graduates looking to make a start in a big city with a less competitive job market. When it comes to why Chicago attracts top talent, the cost of living is a huge plus. Although Chicago is the third largest city in America after New York and Los Angeles, there is a stark difference in housing prices with the average rental price being nearly half of the cost in NYC, without a decrease in salary. So, for young workers looking to build a career without breaking the bank, the Windy City is the perfect place to work your way up the corporate ladder while building a financial safety net to support your personal and professional growth.

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