Singles Tax: Americans Living Alone Face $10,470 in Annual Extra Costs
Altman Brothers Real Estate owner Josh Altman discusses the rising cost of California real estate on Varney & Co.
Americans living alone are facing a significant financial burden, often referred to as the “singles tax.” A recent analysis highlights that solo renters are paying an average of $10,470 annually due to rising rents across the nation.
According to data from Zillow, the typical apartment rent has surged to $1,745, marking a 30% increase over the past five years. This rise is particularly challenging for individuals without roommates to share the costs. Emily Smith, a Zillow rental trends expert, explains, “When you’re living alone, you’re covering the full rent on one income, and that can add up fast.” She notes that while apartments can make solo living more feasible, they also contribute to feelings of isolation.
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New York City had the largest “singles tax” in Zillow’s data, which amounted to $23,400 per year. (Thomas Trutschel/Photothek via Getty Images / Getty Images)
New York City leads the list of cities with the highest singles tax, where the average rent of $3,900 translates to an annual singles tax of $23,400. Following closely is San Jose, with a typical rent of $3,248 and a singles tax of $19,488. Boston ranks third, where the average rent is $3,014, resulting in a singles tax of $18,084.
California cities continue to dominate this list, with San Francisco in fourth place, where the average rent is $2,857, leading to a singles tax of $17,142. Los Angeles rounds out the top five, with a typical monthly rent of $2,648 and a singles tax of $15,888.
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San Francisco ranked fourth on Zillow’s list with a “singles tax” of $17,142 per year. (Photo by Justin Sullivan/Getty Images / Getty Images)
Interestingly, renters who choose to live with a partner benefit from what Zillow calls a “couples’ discount.” This arrangement allows them to split not only the rent but also utilities and other expenses. Smith emphasizes, “For renters who choose to live with a partner or roommate, splitting everyday costs like rent, utilities, and groceries can significantly ease the pressure of today’s higher cost of living.”
The national data indicates that the couples’ discount can lead to an impressive annual savings of $20,940, which can be crucial for those saving for a down payment on a home.
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Los Angeles ranked fifth on Zillow’s list of cities with the largest “singles tax.” (iStock / iStock)
In cities with the highest rents, the couples’ discount can be substantial. For instance, couples in New York City can save $46,800 compared to the singles tax of $23,400. This significant savings can help renters work towards a down payment on a home, with the average couples’ discount being more than halfway to a 10% down payment on a typical U.S. home, according to Zillow’s data.
Altman Brothers Real Estate owner Josh Altman discusses the rising cost of California real estate on Varney & Co.
Americans living alone are facing a significant financial burden, often referred to as the “singles tax.” A recent analysis highlights that solo renters are paying an average of $10,470 annually due to rising rents across the nation.
According to data from Zillow, the typical apartment rent has surged to $1,745, marking a 30% increase over the past five years. This rise is particularly challenging for individuals without roommates to share the costs. Emily Smith, a Zillow rental trends expert, explains, “When you’re living alone, you’re covering the full rent on one income, and that can add up fast.” She notes that while apartments can make solo living more feasible, they also contribute to feelings of isolation.
HOUSING MARKET COOLS AS PRICE GROWTH HITS SLOWEST PACE SINCE GREAT RECESSION RECOVERY
New York City had the largest “singles tax” in Zillow’s data, which amounted to $23,400 per year. (Thomas Trutschel/Photothek via Getty Images / Getty Images)
New York City leads the list of cities with the highest singles tax, where the average rent of $3,900 translates to an annual singles tax of $23,400. Following closely is San Jose, with a typical rent of $3,248 and a singles tax of $19,488. Boston ranks third, where the average rent is $3,014, resulting in a singles tax of $18,084.
California cities continue to dominate this list, with San Francisco in fourth place, where the average rent is $2,857, leading to a singles tax of $17,142. Los Angeles rounds out the top five, with a typical monthly rent of $2,648 and a singles tax of $15,888.
HOMEBUYERS GAIN UPPER HAND IN 3 MAJOR CITIES AS INVENTORIES GROW
San Francisco ranked fourth on Zillow’s list with a “singles tax” of $17,142 per year. (Photo by Justin Sullivan/Getty Images / Getty Images)
Interestingly, renters who choose to live with a partner benefit from what Zillow calls a “couples’ discount.” This arrangement allows them to split not only the rent but also utilities and other expenses. Smith emphasizes, “For renters who choose to live with a partner or roommate, splitting everyday costs like rent, utilities, and groceries can significantly ease the pressure of today’s higher cost of living.”
The national data indicates that the couples’ discount can lead to an impressive annual savings of $20,940, which can be crucial for those saving for a down payment on a home.
RICH CALIFORNIANS FLOCK TO LAS VEGAS HOUSING MARKET AS LAWMAKERS CONSIDER WEALTH TAX
Los Angeles ranked fifth on Zillow’s list of cities with the largest “singles tax.” (iStock / iStock)
In cities with the highest rents, the couples’ discount can be substantial. For instance, couples in New York City can save $46,800 compared to the singles tax of $23,400. This significant savings can help renters work towards a down payment on a home, with the average couples’ discount being more than halfway to a 10% down payment on a typical U.S. home, according to Zillow’s data.
