Americans who live alone pay a five-figure ‘singles tax’ increase in rents across the country, new analysis reveals.
Zillow data shows that the typical apartment rent is currently $1,745 and has increased 30% over the past five years, posing 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 tenants has been dubbed the “singles tax” by Zillow, which found that the average national tax for singles is $10,470 per year.
“When you live alone, you’re covering the entire rent with one income and that can add up quickly,” said Emily Smith, rental trends expert at Zillow. “Apartments often make solo living more accessible, while also providing shared spaces that help people feel connected.”
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New York City had the largest “singles tax” according to Zillow data, which was $23,400 per year. (Thomas Truutschel/Photothek via Getty Images / Getty Images)
New York City tops the list of areas with the highest singles tax, as the typical Big Apple apartment rent of $3,900 per month equates to a singles tax of $23,400 for the year.
San Jose ranks second, with a typical rent of $3,248 per month and a singles tax of $19,488 per year. Boston comes in close behind in third place, with the typical rent in the city coming in at $3,014 per month and carrying a singles tax of $18,084.
Two Californian cities round out the top five, with San Francisco in fourth place based on a typical monthly rent of $2,857 and a singles tax of $17,142, while Los Angeles ranks fifth with a typical monthly rent of $2,648 and a singles tax of $15,888.
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San Francisco ranks fourth on Zillow’s list with a “singles tax” of $17,142 per year. (Photo by Justin Sullivan/Getty Images / Getty Images)
Renters who share their home with a partner receive what Zillow calls a “couples discount” because of the ability to share a home. rental invoice as well as utilities and other costs.
“For renters who choose to live with a partner or roommate, sharing daily expenses like rent, utilities and groceries can go a long way in easing the pressure of today’s higher cost of living,” Smith said.
Based on the company’s national data, the discount for couples amounts to a combined annual rent savings of $20,940 through bill-splitting.
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Los Angeles ranks fifth on Zillow’s list of cities with the highest “singles tax.” (iStock/iStock)
For example, given the importance of the singles tax in cities with the highest rents, couples in New York can receive a reduction of $46,800 instead of the singles tax of $23,400.
The report highlights that the couples discount can greatly help renters save for a deposit on a home, with the national average discount for couples of $20,940 being more than half of a 10% down payment on a typical U.S. home, according to Zillow data.
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