If you’re deciding where to move after you graduate, Rove Lab’s new study can give you a framework for deciding, plus plenty of tips on what to look for and how to apply them to a successful move.
Check the rent-to-income ratio. The standard advice is to keep housing costs under 30% of your income. Pittsburgh has a 17.6% average rent-to-income ratio, Toledo has 18.2%, and Cleveland has 18.3%, so they all easily meet that guideline. Las Vegas, at 30.9%, does not.
Don’t stop at considering rent costs. Consider the cost of living, too. Wichita’s average rent of $1,010 a month looks pretty good on paper, but with a cost of living that’s 11.05% below the national average, you’re saving a lot of money.
Verify that there will be plenty of jobs to choose from before moving. New Orleans might rank 13th on the list for affordability, but it’s struggling with -15.9% employment growth. Cheap rent in a shrinking job market is an illusion of affordability.
Look at housing vacancy rates as well. Baton Rouge has 10.7% rental availability. Albany has 2.1%. That difference determines whether you can choose a place you like and shop for what’s affordable, or if you’ll have to take whatever you can get.
