Gen Z graduates’ best shot at good pay and homeownership isn’t in New York or LA—it’s Omaha and Dallas

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Gen Z graduates’ best shot at good pay and homeownership isn’t in New York or LA—it’s Omaha and Dallas

College graduates AI swiping white-collar roles are turning their tassels and looking for cities with ample job opportunities. But popular hotspots like New York City and Los Angeles might not be their best bet — they might kick off their adult lives in less glamorous cities.

The top 10 best big U.S. cities for recent college graduates dropped—based on starting salary and housing metrics—and some attractive metros didn’t make the cut. According to recent reports from Glassdoor and Redfin, Washington, DC, ranks No. 1 for budding professionals; The median annual early career income in DC remains at $79,857, the median price of a starter home is $320,000, and monthly rent is about 34% of income.

While housing costs are high in the U.S. capital, the study offers a strong entry-level job market and culture around every corner.

The other cities that made the list may come as a surprise to some — namely, the fact that Omaha came in second. While the Midwest city’s median annual early-career income is slightly lower than others, at $59,123, the median price of a starter home is just $195,000. In addition to more affordable homeownership, the report notes that Omaha is a hub for major companies like Berkshire Hathaway, and offers a better work-life balance than other fast-paced cities.

“I’m currently helping a young couple move from North Carolina to Omaha,” Justin Gomez, a Redfin Premier agent in Omaha, said in the report. “People move here from different parts of the country because there’s a great community for the younger crowd … and with many homes selling for less than $300,000, younger grads actually have a shot at buying a home.”

Boston came in third, thanks to the list’s highest early career earnings of $80,026 and ample job opportunities. And Texas’ biggest cities are also major hubs for young workers, with Dallas, Houston and Austin earning spots on this year’s list. More than Fortune 500 companies are flooding into the tax-friendly southern state, bringing with them junior-level jobs—and the cities have no shortage of entertainment for Gen Xers. Meanwhile, buzzy spots New York City and LA didn’t even make the list this year.

The American dream of landing a college dropout in a high-paying job and settling down at home is increasingly out of reach — so some are uprooting their lives for greener pastures in the concrete jungle.

The Midwest has grown in popularity due to its good affordability; The cost of living in this area can be at least 30% cheaper than in large coastal cities like New York City and L.A. In fact, seven of the 10 most accessible metros for young homeowners are in the Midwest, according to the 2025 Consumer Affairs Analysis from the U.S. Census Bureau and the Federal Financial Examinations Council (FIEC data).

Omaha ranked highest for young homebuyers, with 18.2% of homeowners under the age of 35. Other cities include Grand Rapids (21.1%), Des Moines (19.8%), Wichita (18.4%), and Cincinnati (17%). And this trend largely stems from relatively rock-bottom housing costs in the region. In many cities in the Midwest, the average home costs about $200,000 to $275,000, while the U.S. average is more than $400,000, said Danielle Andrews, a Realtor with Realty One Group Next Generation. fate last year

Southern states are also an increasingly bright spot for young graduates. According to a 2025 study by JLL Research, Florida and Texas will become the new hubs for Gen Z talent right out of college. And that’s mainly because there’s been an explosion of big companies moving their operations to the states since 2020 — thanks to the territories’ business-friendly tax policies. And they are bringing new jobs.

“Financial firms moving to Miami or Dallas since the start of the pandemic have had a significant impact on the distribution of job availability,” said Jacob Rowden, senior manager of US office research at JLL. fate last year “Prior to the pandemic, Texas and Florida held about 16.2% of financial services jobs in the nation, which has quickly approached 18% today. That 2% shift reflects nearly 2 million jobs, so this is a strong and significant improvement in local labor markets.”

Here are the best cities for recent college graduates in 2026, according to recent reports from Glassdoor and Redfin.

  1. Washington, DC

  2. Omaha

  3. Boston

  4. Dallas

  5. Chicago

  6. Houston

  7. St. Louis

  8. San Diego

  9. Miami

  10. Austin

This story was originally featured on Fortune.com

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