Renters Pay a 'singles tax' of Nearly $7,000 for Living Alone
Thursday, February 16th, 2023
This Valentine's Day, Zillow has uncovered a heartbreaking truth for apartment-hunting singles: Renters living in a one-bedroom on their own face a yearly "singles tax"1 of nearly $7,000, according to an analysis by Zillow.
While singles across the country pay a high price for a solo living arrangement, the size of that "tax" varies widely depending on where they live. The price of living alone in a one-bedroom apartment is the highest in New York City, where StreetEasy data finds that singles pay $19,500 more a year than someone living with a partner in the same place. This rises to nearly $24,000 in Manhattan, the priciest borough. San Francisco isn't too far behind with a $14,000 "singles tax" for a one-bedroom apartment.
Of the 50 largest U.S. cities (by population), Detroit and Cleveland have the lowest "singles tax" at $4,483 and $4,387 respectively. It is, of course, worth mentioning that singles can avoid this "tax" by taking in roommates — an extremely popular choice for saving on rent.
"Living alone has its perks — you never have to share a bathroom, you have a claim to the TV at all times, and dirty dishes can stack up as long as you want, judgment free. But all that freedom comes with a cost," says Amanda Pendleton, Zillow home trends expert. "Even though rent prices are starting to cool, they are still significantly higher than they were a year ago. Renters considering going solo this year must decide how valuable living alone is to them, and if the cost is worth it."
Zillow's analysis also found that cohabitating renters in the U.S. save a collective $14,000 annually, compared to renters living alone. Couples in more expensive cities can save even more, with the discount reaching up to $39,000 in New York City. That's a sizable amount of money that can be used toward paying off student loans, a wedding or even a down payment on a home.