6 Cities Too Expensive for College Graduates To Live In
The average U.S. college graduate earns $68 an hour, or $140,766 a year, according to ZipRecruiter. However, salaries can range from about $22,500 to $261,500 a year, depending on experience, industry, location and skill level.
While higher earners are bound to have their pick of where to live in the country — depending on factors like student loan debt — those earning less than the average salary are a bit more limited. Some cities, especially large metropolitan areas along the West Coast and East Coast, have a high cost of living and are simply out of reach.
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Although there are ways to afford even the unaffordable, here are six U.S. cities that are generally considered too expensive for recent college graduates to live in.
San Francisco, California
The cost of living in San Francisco is “among the highest in the country, with median rents for a one-bedroom apartment around $3,000 to $3,500,” according to Alex Coffman, co-owner of Teifke Real Estate. Home prices can exceed $1.3 million in different parts of the city.
The average salary in San Francisco is $95,009 a year, or roughly $46 an hour. While some recent college graduates should be able to afford this, student loan debt and high housing prices can make it unfeasible.
Plus, California is one of the most expensive states in the country. The Missouri Economic Research and Information Center found that the overall cost of living index is 138.5, with everything from groceries and healthcare to utilities and housing being more expensive than almost anywhere else. Only Massachusetts, Hawaii and Washington, D.C., have a higher overall cost of living.
For those who do want to live in San Francisco, there are a few options. Coffman suggested room sharing to cut down on individual costs. College graduates who want a job in tech could also find a lucrative start to their career there, though it’ll likely take some time.
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New York City, New York
Despite being the fifth-most-expensive state to live in — just behind California — New York doesn’t have the wages to compete. The average salary in New York City is just $51,815 a year, less than the national average. But with housing prices through the roof, it can be hard to find something affordable anywhere near the city.
“Notably, cities like San Francisco and New York consistently rank high on the list of expensive places for recent graduates,” said Sean Autry, a CPA with PlushStone who’s experienced in financial consulting. “In New York City, even with a relatively modest lifestyle, the cost of rent combined with daily living expenses like transportation and food can be daunting.”
The cost of living is “very high, with Manhattan rents for a one-bedroom apartment averaging around $3,500 per month,” Coffman said. The median home price in New York City is close to $1 million as well, making it extremely difficult for those who want to make the city their long-term home.
As with San Francisco and other such locations, it’s possible to make the dream of living in New York City come true. It’ll require some flexibility and, in all likelihood, sharing a small apartment with others or moving to cheaper boroughs.
Seattle, Washington
According to Payscale, the average salary in Seattle hovers around $91,000. That being said, the cost of living in the city is higher than most other places on the West Coast.
As a whole, Washington state also ranks as one of the top 10 most expensive states to live in, with an overall cost of living index of 116. Transportation, housing, groceries, healthcare and utilities are all more expensive than the national average too.
The average cost of a one-bedroom apartment in Seattle is $2,227, which can be tough to afford, even with a decent job. Those who want to live there may be better off working for a few years to build up their careers before moving to the city.
Boston, Massachusetts
Massachusetts is the third-most-expensive place in the U.S. to live, with an overall cost of living index of 146.5. Everything is more expensive there, particularly housing, transportation and utilities.
As the capital of the state, as well as its financial and cultural center, Boston is perhaps even more expensive than other parts of the state. Considering salaries range from about $46,654 to $121,520 a year in the city, college graduates could struggle to make ends meet there.
“Boston is ranked as the third-most-expensive city in the U.S. due to its high real estate prices and living expenses, according to Forbes,” said Eleanor Campbell, a senior realtor working with ContractorBond as a property consultant. “The median home value is $612,509, and the average rent is around $3,000 as per Zillow … I would never recommend a fresh college graduate to start their career in Boston, as it offers fewer job opportunities compared to other cities like San Francisco and New York.”
Miami, Florida
Miami is a popular destination, especially among retirees, but recent college graduates have also been known to flock there. While the city has a lot to offer, it’s also quite expensive — especially compared with other parts of the state.
“There’s a real squeeze here, with the average home price over $600,000, average rent over $1,400 per month and the average salary in the mid-$50,000s, with new graduates generally making less than that,” said Martin Orefice, the CEO of Rent To Own Labs. “On top of high housing costs and low pay, you can also expect to pay more for groceries and other essentials, and if you do manage to scrape together enough money for a home, you’ll pay incredibly high homeowners insurance rates.”
Los Angeles, California
Last but not least is Los Angeles. As with San Francisco, the cost of living is very high in the city. The average rent for an apartment in the city is over $2,600.
In comparison, the average salary in the city is only $54,813, with many workers earning under $40,000 a year. Considering the city’s high housing, grocery and utility prices — not to mention student loans — recent graduates who aren’t yet financially stable are more likely to struggle if they move to the city right after college.
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