Living Alone? The 'Singles Tax' That Costs $10K a Year

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According to a new analysis from Zillow, Americans who live alone are paying a five-figure "singles tax" as apartment rents have surged 30% over the last five years. The national average singles tax amounts to $10,470 per year, with the highest costs in cities like New York, San Jose, and Boston. Renters who live with a partner or roommate can get a "couples' discount" of over $20,000 annually by splitting everyday costs.

Why it matters

The growing singles tax highlights the financial challenges facing solo renters, especially in high-cost housing markets. This trend could make it more difficult for single individuals to save for major life goals like buying a home. Understanding the cost differences between living alone versus with a partner or roommate is important for renters to make informed decisions about their living situations.

The details

Zillow's data shows the typical apartment rent is currently $1,745 and has risen 30% over the last five years. This represents a significant burden for renters living alone, who must cover the full rent on a single income. New York City has the highest singles tax at $23,400 per year, followed by San Jose ($19,488) and Boston ($18,084). San Francisco and Los Angeles also have high singles taxes of $17,142 and $15,888 respectively. In contrast, renters who live with a partner or roommate can take advantage of a "couples' discount" that averages $20,940 in annual rental savings by splitting costs.

• Zillow's data shows apartment rents have risen 30% over the last five years.

What they’re saying

What’s next

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.