Housing Affordability Improves for Recent College Grads

Housing is gradually becoming more affordable for younger generations, particularly recent college graduates. According to housing market platform Redfin, the typical recent U.S. college graduate would now spend 20.6% of their income on renting a median-priced two-bedroom apartment with a roommate, which is down from the 22.6% of their income recorded last year. Similarly, the cost of renting a studio or one-bedroom apartment has dropped, with grads spending 35.7% of their income, compared with 39% in 2023. 

Even in cities with high costs of living—such as San Jose, Calif., San Francisco, and Sacramento, Calif.— affordability has improved, with rent costs dropping below the 30% threshold. Austin, Texas, has seen the most significant improvement in affordability, with grads now spending 28.3% of their income to live alone, down from 35.2% the previous year.

The typical recent college grad in San Jose makes an estimated $108,499—the highest among the metros Redfin analyzed. And the median 2 bedroom asking rent in San Jose fell 1.8% year over year, helping college grads become unburdened by rent. The story is similar in San Francisco, which has the second highest salary for recent grads ($84,388) and saw one of the steepest declines in asking rents (-6.7%).

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