Living alone can be expensive, especially when you're hit with the 'singles tax'. This is the extra cost that solo renters face due to rising rents, and it's a significant burden for many. But here's where it gets controversial: is it fair that those who live alone should bear the brunt of this tax, while those with roommates get a break? Let's dive into the numbers and explore the impact of this tax on solo renters across the country. And this is the part most people miss: the 'couples' discount' that can help ease the financial strain for those who live with a partner or roommate.
According to a new analysis, Americans who live alone are paying a five-figure 'singles tax' due to rising rents around the nation. The typical apartment rent is currently $1,745, and it has risen 30% over the last five years. This represents a significant burden for renters who live alone and don't have one or more roommates to split the bill with. The premium paid by solo renters was dubbed the 'singles tax' by Zillow, which found that the national average singles tax amounts to $10,470 per year.
New York City had the largest 'singles tax' in Zillow's data, which amounted to $23,400 per year. The typical apartment rent in New York City is $3,900 a month, which amounts to a singles tax of $23,400 for the year. San Jose ranked second, with a typical rent of $3,248 a month and a singles tax of $19,488 per year. Boston was close behind in third, with the typical rent in the city amounting to $3,014 a month and resulting in a singles tax of $18,084.
A pair of California cities rounded out the top five, with San Francisco in fourth based on a typical rent of $2,857 and a singles tax of $17,142, while Los Angeles ranked fifth with a typical monthly rent of $2,648 and a singles tax of $15,888. Renters who pair up their living arrangement with a partner derive what Zillow called a 'couples' discount' from being able to split up the rental bill as well as utilities and other costs. For renters who choose to live with a partner or roommate, splitting everyday costs like rent, utilities, and groceries can go a long way in easing the pressure of today's higher cost of living.
Based on the firm's national data, the couples' discount amounts to a combined $20,940 in annual rental savings from splitting the bill. For example, given the sizable singles tax in the cities with the highest rent, couples in New York City can get a discount of $46,800 instead of the singles tax of $23,400. The report noted the couples discount can go a long way toward helping renters save for a down payment on a home, with the national average couples discount of $20,940 being more than halfway to a 10% down payment on a typical U.S. home, per Zillow's data.
