Zillow's latest ranking of top markets for new college graduates points to a quiet but meaningful shift in the apartment business: landlords in many Sunbelt and Western metros are leaning on concessions to win over young renters just as they enter the workforce.
For owners and developers, that means the class of 2026 is stepping into some of the most renter-friendly conditions in years, even in markets known for strong job and population growth.
Zillow's annual winners list this year reveals at least one thing in common — a high share of rentals offering concessions that help new grads stretch their paychecks further.
"The class of 2026 is entering one of the most renter-friendly markets in years," Zillow stated. In eight of the top 10 markets, more than half of rental listings offer concessions and in nine of the 10 markets, rent will consume less than 30% of income.
To determine which markets offer grads the best opportunities to start and build their careers, Zillow weighed rental affordability, the share of rentals offering a concession, starting income, job openings and the share of residents in their 20s. The resulting list is dominated by Sunbelt and Western metros, with only two exceptions.
Seattle topped the list of metros offering the highest starting salaries for grads, at $93,900, followed by Washington, D.C. at $83,900, Denver at $81,100 and Portland, Oregon at $80,700. But when Zillow combined income, rent levels, concessions and other lifestyle factors, Austin, Texas claimed the top overall spot for the second straight year.
In Austin, the typical income for new grads is $74,800. With a typical rent of $1,604, nearly 64% of rentals offer a concession and the metro continues to act as a magnet for 20-somethings, supported by a robust tech and professional services job base.
Denver ranked second overall. Typical rents run $1,887 and 68.3% of apartments offer concessions, while the market's appeal is bolstered by outdoor amenities and a maturing tech sector.
Portland, Oregon, came in third, offering relatively high incomes and a typical rent of $1,789. New grads there can tap into jobs in technology as well as the outdoor and apparel industries.
Seattle, which placed fourth, commands the second-highest rent in the top 10 at $2,208. Even so, the metro also offers grads the second-highest income, thanks to a dense concentration of tech employers and more than half of rental listings include concessions.
Fast-growing Charlotte took fifth place. Rents average $1,733, but two-thirds of rentals offer concessions, bringing the rent burden for new grads down to just 29% of a typical $71,700 income.
Dallas, another Texas metro, ranked sixth. Typical rent is $1,660 and income is $72,500; almost two-thirds of rentals or 64.2%, offer concessions and the region's relatively low cost of living helps attract a large share of those in their 20s.
Washington, D.C., the nation's capital, landed in seventh place. Grad pay there is the second-highest in the country, supported by government, consulting, policy and technology employers, while typical rent is $2,375 and 58% of rental listings are offering concessions — unusually high for that market.
Dayton ranked eighth. Rent consumes just 22% of a typical $72,400 paycheck, the lowest rent burden among the top 10 markets.
San Antonio, yet another Texas city on the list, placed ninth. Typical rent of $1,398 ranks the second lowest in the top 10 and takes up about 25% of a $66,300 income, with more than half of listings offer concessions.
Rounding out the top 10 is Phoenix. There, the typical rent is $1,741 and income is $69,800 and a market flooded with new apartment supply has pushed 60% of landlords to offer concessions.
© Arc, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to TMSalesOperations@arc-network.com. For more information visit Asset & Logo Licensing.