After donning the iconic graduation cap and gown, recent graduates are packing up all their belongings and shipping out to better out-of-state job opportunities (USA Today). Professional growth and job opportunities are among the main reasons college graduates are moving around the nation, and leaving behind their alma mater. Even the disadvantage of higher rent prices or trading-off to smaller accommodations is not deterring this generation from choosing to work in bustling cities that have a higher job demand, over areas with lower housing prices.
According to a recent study by Credible, the top cities college graduates are flocking to are: Dallas, New York, Portland, Oakland, Washington, D.C., Charlotte, San Francisco, and Denver. Not surprisingly, Charlotte is at the top of the list, a city we’ve noted as a top SFR market for 2016. Charlotte and Washington, D.C., had the most out-of-state graduates relative to in-state graduates, at 2.2 for every one in-state graduate.
Many of the cities on this list by Credible are among the nation’s most expensive to buy a home, which further supports the current trend of millennials preferring to rent over own. Where previous generations were looking to save their capital and own a home, the younger generation is choosing to rent properties instead. There are multiple reasons for this shift, such as generational delay in entering the workforce, higher college debt, and an aspiration to marry later in life. Whatever the reason, the consensus is that this recent trend is going to continually supply the renter market.
With an abundance of renters, now is an ideal time to start investing in residential housing. Dallas, Denver, and Charlotte have relatively lower home prices in comparison to other cities on the list where demand has pushed home prices up astronomically. To learn more about important economic factors of each market, schedule a consultation with one of our Solutions Managers.