By Hugh Cameron
Reporter
0
Share
Newsweek is a Trust Project member
See more of our trusted coverage when you search.Prefer Newsweek on Googleto see more of our trusted coverage when you search.
New research shows that being single and living alone is costing some Americans thousands of dollars each year, with certain cities suffering from significantly higher levels of what housing experts have dubbed "singles tax."
According to data from the online real estate marketplace and research platform Zillow, solo renters now pay about $10,470 more per year than those who share housing costs—a “singles tax” that has grown by $146 over the past five years. And Zillow said that by sharing one lease, couples would together be able to save $20,940 annually on their rents.
“Those savings add up,” researchers wrote. “An extra $20,000 back in renters' pockets is more than halfway to a 10 percent down payment on a typical U.S. home.”
Read More on U.S.
Why It Matters
Housing costs in the U.S., which continued to drive many of the monthly increases in the latest inflation report, have risen significantly in terms of both rentals and for prospective homeowners in recent years. However, renters have faced a particular surge across much of the U.S., leading to a narrowing of the affordability gap they enjoy relative to those on the property ladder.
What To Know
According to Zillow’s “Love Pays, Literally" report, residents of certain cities pay a far higher “singles tax” than the national average of about $10,000.
Drawing on data from its regional affiliate StreetEasy, researchers found that solo renters in New York City pay on average $23,400 more than those with roommates. This is largely due to the already nation-beating rental prices in the city, particularly Manhattan, which routinely ranks among the most expensive areas for renters across the entire U.S.
According to data from the Bureau of Labor Statistics (BLS), the consumer price index for rental costs in the New York-Newark-Jersey City region jumped 3.9 percent in December compared to a year prior, and is up 21 percent in the past five years.
And Zillow found that New York City couples who share rental costs could together save $46,800 on average.
The Big Apple was followed by San Jose—one of several California cities in Zillow’s top ten—with a singles tax of $19,488 and a “couples’ discount” of $38,976. Boston, Massachusetts came in third with an $18,084 singles tax.
“These same metros, however, are also where sharing a home can deliver the biggest financial payoff,” Zillow said of the states in its top ten. “Renters who share housing can save more than $30,000 per year, making falling in love one of the most effective ways to stretch a housing budget in the nation's most expensive rental markets.”
But as Zillow notes, the average singles tax has risen by only $146 over the past 12 months, marking the slowest annual increase in five years.
What People Are Saying
Zillow wrote in its report: “Living solo remains an intentional choice for many renters who value independence. With affordability gradually improving, the choice between “me” and “we” feels less pressured and more personal. Renters have more room to be strategic in today’s cooler market and may find opportunities to negotiate concessions or take advantage of move-in incentives.”
What Happens Next
According to a recent report from the real estate brokerage Redfin, rental prices in the U.S. have begun to ease in recent months, and overall affordability “could notably improve if current trends persist.”
View 0 Comments
Submit Correction
View Editorial & AI Guidelines