Grad Town USA: Best Cities in 2025 to Start a Career for New Graduates

College towns ooze the good vibes of vibrant downtowns, abundant coffee shops, built-in lecture series, touring music, and theater productions that inspire young adults to explore new ideas, find their passions, and stumble home safely.

But where can new graduates actually afford to build a future that aligns with their values? 

Gen Z factors don’t go away once newly minted BAs turn the tassel. We looked at cities that included young populations with plenty of diversity, entertainment, and high walkability. Although, we also considered factors that help launch new careers (like GDP, job, and growth from new moves) and support entry-level salaries (like high starting salaries and affordability).

So, what are the best cities for new grads? The results might be surprising.

New grads strike the best balance in notoriously high-priced San Francisco.

Key Takeaways

• The San Francisco metro (including Oakland and Fremont) is the new grad capital of 2025. With the top Gen Z factor score of any U.S. metro, the City by the Bay boasts the #4 walk score and comes in #3 for entertainment and #2 for diversity. And it’s surprisingly not bad in affordability (ranking 13th) either.
• Southern states take 15 of the top 25 spots, including 3 cities in Texas and 2 each in North Carolina, South Carolina, Georgia, and Florida.
• With diversity, entertainment per capita, and walking score all within the top 10, San Francisco has the highest Gen Z score.
• For affordability, head to Des Moines, IA, where low costs and high(ish) salaries combine to make your best life more achievable — only 7 U.S. cities offer lower rent.
• Grow faster in Austin, where incoming movers (#4), and new jobs (#3) create bigger opportunities to accelerate new careers.

Lifestyle — and Surprisingly Costs — Favor Gen Z Heading to San Francisco.

 

The number one grad town for 2025, San Francisco, might seem like an anomaly.

After all, it’s an expensive, coastal hub where many Gen Z grads might feel they can’t afford to put down roots without spending their 20s digging through couch cushions for enough change to pay for their $22 burritos.

San Francisco earns much of its top score due to its abundant entertainment, walkability, and diversity, all of which contribute to its dominance in the Gen Z factors category — and also its price tag.

But with an average salary that’s only topped by nearby San Jose, employees in San Francisco can expect to earn 380% more per year than they’d make in last-place McAllen, TX, and more than double their annual earnings compared to the lowest income city in the top 25 — Tallahassee, FL.

Furthermore, San Francisco salaries offset high rents better than in many smaller cities. Savannah, Miami, and Provo actually have worse rent burdens, despite cheaper rents, due to even lower pay.

The South is the Grad-Friendliest Region, While New England Lags Behind

The majority of top cities strike a balance between affordability and job growth. Because traditionally low prices and business-friendliness converge in the U.S. South, many of the top graduate cities are also located in the region. 

From Charleston, SC, to Dallas, TX, a new grad belt shares significant overlap with the cities that moveBuddha users express the most interest in: there are 8 top-25 move destinations in the overall top 25 cities for new grads, and all but Seattle and Madison are in the South: Charlotte, Austin, Raleigh, Dallas, Charleston, and Savannah.

Meanwhile, none of the top 25 are in New England. The closest new grad landing pad, Philadelphia, ranks #19 in attracting new in-moves, although it ranks in the bottom 25% for rent costs, with the average new grad forking over more than $3K monthly for housing. Job growth? That’s also in the negative in the City of Brotherly Love.

Gen Z Factors are Strongest in Big Cities like San Francisco

With just 5.33% of its population 20-24 year olds (the U.S. average is 6.55%), Fog City will never compete with college towns like Tallahassee, Provo, or Madison for the sheer number of 20-somethings who call it home.

However, while these college towns also rank among the top 25, San Francisco outperforms them all in terms of Gen Z appeal. 

How? 

A historic hub for immigrants and a current global talent magnet, it is poised to entice the most diverse generation ever, boasting a more equal mix of racial and ethnic groups.

And its walk score of 89 means it’s one point shy of a “walker’s paradise,” associated with socially vibrant neighborhoods overflowing with independent markets, sidewalk cafes, and chatty neighbors.

Not to mention car-cost savings. Thirty percent of San Francisco households get along without a vehicle, and the number is even lower in central city neighborhoods. In parts of the Tenderloin, for example, car ownership is only 11%.

With plenty of entertainment packed into a tiny peninsula, San Francisco packs big amenities into the kind of cozy neighborhoods new Gen Z grads should check out — in spite of the price.

Des Moines, IA, is the Most Affordable Grad Destination

Although it ranks #42 overall, Des Moines is a stealth win for Gen Z, with the 7th-cheapest rent of any metropolitan area, along with disproportionately high average salaries. 

A 1-bedroom apartment here will set new grads back just under 19% of an average paycheck. That’s less than Little Rock (which has slower job growth), Tulsa (with a smaller talent pool), and San Francisco (with a high cost of living). And for those working remotely, earning a coastal salary but paying rent in the Midwest capital, Des Moines represents an even bigger opportunity to save or pay off student loans while building a career.

What’s the catch? 

Des Moines’ entertainment scene is less dense than that of “sexier” cities, and net migration shows an outflow as young professionals seek their fortunes elsewhere.

Check out Des Moines to adult on a budget — just don’t expect non-stop thrills.

Top 5 Ranked Cities: Rent-to-Salary Ratios

Speaking of affordability, after determining the top cities overall for new grads based on Gen Z factors, affordability, and economic growth, we looked at the rent-to-salary ratios for the top 5. While none matched Des Moines’ impressively low 19% ratio, each city on the list stays below the 30% threshold—while also offering a strong balance of affordability, entertainment options, and long-term growth potential. 

Austin Tops Growing Destinations

Austin’s growth spurt isn’t over yet: it’s the top-ranked city for economic growth for Gen Z grads who want to accelerate their careers the fastest.

While the Texas capital lost population for the first time in 20 years in 2023, it did so while growing its per capita GDP. Further, while Austin rents have soared 17.8% since 2017, they’re still down 14% since July, 2022, when they hit an all-time high. That ability of Austin’s markets to absorb housing demand without skyrocketing prices into San Francisco’s stratosphere is one reason why growth might continue to be strong.

Though rents are steadying, job growth continues unabated, ranking #10 in the nation. That’s a good combination for new grads, who won’t pay as high a premium to access those roles compared to cities where housing markets have struggled to keep up with new demand.

With moveBuddha’s net in-moves holding steady this May at #4 in the nation, we predict that the “Silicon Hills” will be a top destination for the class of 2025.

The Best Grad City? —Your Perfect Balance of Savings and Opportunity 

What’s the right move for new grads? 

It could be settling in the most affordable “starter city” and dipping before things get too boring. But it could also mean basking in the kind of vitality (along with an impressive paycheck) that you won’t find in smaller markets.

Ultimately, hyper-pricy San Francisco and truly-affordable Des Moines can both be great deals — as can any of the cities on our list that share a balance of growth, affordability, and Gen Z factors — if they align with your career goals, lifestyle, and financial reality. 

The best city isn’t the one with the most hype; it’s the one that sets you up for success, no matter how you define it.

Methodology

We examined factors that contribute to a better life for new graduates in three categories across 120 of the largest metropolitan statistical areas (MSAs) in the U.S. Then, we normalized scores and averaged data for a category score in each area (weighing all factors equally). The overall winners were the metros with the highest average scores across all three categories. We also used some of our own moveBuddha data (net moves seeking an inbound vs outbound move to the MSA) from the moveBuddha moving calculator.

Gen Z Factors

• Percentage of the population aged 20-24, from the U.S. Census American Community Survey Data
• Diversity score, from Simpson’s Diversity Index
• Entertainment per capita, based on the U.S. Census County Business Patterns Dataset
• Walkability Index

Affordability

• Rent and Rent Inv, from Zillow MSA averages, May 2025
• Percentage of Entry Level Salary Offers Above the Area’s Median Salary, from Visual Capitalist, January 2024
• Average personal income by county, from the Bureau of Economic Analysis, November 2024

Economic Growth

• Job growth by MSA, based on Bureau of Labor Statistics Data, 2022
• MSA percentage growth change in GDP, 2022 to 2023, from the Bureau of Economic Analysis
• Net moves seeking an inbound vs outbound move to the MSA, from the moveBuddha moving calculator, May 2025