Americans who live alone are paying $10,000 extra — and most of them don't even realize it
Americans living alone are paying about $10,000 extra in rent, which has been dubbed the "singles tax" by Zillow in its latest report. The data show that singles are paying a premium compared to those sharing a house, simply because they have to bear the rental burden alone. The situation is quite bad in some cities, like New York, more than others, and typically, couples living together save north of $20,000 annually. The data shows that while living solo comes with the perks of privacy, control, and personal space, the difference in savings is staggering.
Zillow's Rentals data shows that Americans living alone pay $10,470 more for rent on average per year than those who share housing, a premium called the singles tax. It further adds that the typical apartment rent in the U.S. is $1,745, and it has risen 30% over the last five years, adding to the burden of solo renters. "When you're living alone, you're covering the full rent on one income, and that can add up fast," Emily Smith, Zillow rental trends expert, told Fox Business, before adding, "Apartments often make living solo more attainable, while also offering shared spaces that help people feel connected."
Last year, Zillow's singles tax was calculated using only one-bedroom units, but the latest report was compiled after analyzing typical rents across all apartments from the 72,000 multifamily listings on the platform. Among the cities with the highest singles tax, New York City tops the list with a typical apartment rent of $3,900 a month. The 'Big Apple's' exorbitant rent means solo renters pay $23,400 a year in singles tax. The city trailing New York is San Jose, with a typical apartment rent of $3,248 a month and singles tax of a whopping $19,488 per year. Following close behind in third is Boston with a typical rent of $3,014 a month and a singles tax of $18,084 per year. Rounding up the top five are San Francisco and Los Angeles, with typical rents of $2,857 and $2,648, respectively, which forces solo renters to pay a singles tax of $17,142 and $15,888 in each city. On the other hand, renters who share housing, particularly couples, save a lot of money compared to singles by sharing one lease instead of maintaining two separate rent bills.
For instance, co-living partners in New York City get a "couples discount" of $46,800 instead of the singles tax of $23,400, according to Zillow's data. The report further noted that the discount can get quite significant, especially when calculating a down payment on a home, as the national average amounts to $20,940, which is over half of a 10% downpayment on a typical home in the U.S., as per Zillow. However, while singles may be feeling the heat, Zillow also shared that apartment affordability has improved across the country, after the rising incomes are factored in. The affordability level is at its best since April 2021, providing much-needed relief to renters across the nation.
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