If you’re a single renter, you may enjoy peace and quiet, privacy, and the luxury of decorating as you please – engaging in gardencore, craftcore, hostingcore, and more, or just walking around in various stages of undress. But according to a new report by Zillow, you won’t enjoy being at a significant financial disadvantage. That’s because the report found single renters pay a singles tax, which is a record high $7,562 a year more than renters with at least one roommate.
The Singles Tax
So, what is the singles tax? “The singles tax quantifies the financial premium solo renters pay compared to those sharing housing costs,” Emily McDonald, Zillow’s rental trends expert, tells me. “To calculate this, Zillow took the annual rent for a one-bedroom apartment and divided that number in half, representing the additional amount a solo renter pays by not splitting rent with a partner or roommate.”
Nationwide, McDonald says the singles tax has increased more than $450 over the last year.
These are the 10 cities with the highest singles tax:
The singles tax varies by location because it reflects differences in local rent prices and housing affordability. “In high-cost cities like New York, San Francisco, and Boston, where rent for a one-bedroom apartment is significantly higher than the national average, solo renters face a much steeper financial burden,” McDonald explains.
Housing Affordability
The singles tax is yet another example of the housing affordability crisis facing many in the U.S. “It’s unfortunate that the singles tax has increased, as this trend continues to show the financial disparity between single renters and those who share costs with a partner or roommate,” says broker Sean Adu-Gyamfi of Coldwell Banker Warburg in Brooklyn.
If rental prices continue to rise at this pace, Adu-Gyamfi says single renters will remain at a significant disadvantage.
Advice For Single Renters
Determine Your Priorities
While some people may enjoy having a roommate – or two – others prefer a different lifestyle. “Having full control over your space, setting your own schedule, and truly making a home your own is worth a lot,” McDonald says. For renters who are considering living solo, she recommends weighing what’s most important – for example, location, amenities, extra space, or other conveniences, like in-unit laundry. “Make a list of your ‘must-haves’ and your ‘nice-to-haves’ and start your search there,” McDonald says.
Plan Strategically
According to Danielle Andrews, a realtor with Realty ONE Group Next Generation in Tallahassee, Florida, single renters should approach their choices with the same level of strategic planning as homebuyers. “This entails understanding the local rental market, which involves researching average rent prices, vacancy rates, and historical trends in rent increases,” she says.
Andrews recommends accounting for potential increases over time. “As a renter, it might seem like you don’t pay for maintenance when things break, but you do—those costs are factored into your rent and reflected in annual increases,” she explains. By analyzing these trends, Andrews says renters can make informed decisions, from negotiating lease terms, choosing a location with more stable pricing, or planning for future costs.
Consider Homeownership
If you don’t want a roommate to offset costs, Abu-Gyamfi recommends exploring homeownership options, like a townhouse or condo. “Ultimately, the best approach is toassess your current financial situation and long-term goals to determine what makes the most sense for you,” he says.
Take On A Caregiver Role
According to Sebastian “Seb” Frey, broker associate at Compass in Silicon Valley, another angle is to find a caregiver situation. “There are many older people out there looking for tenants – specifically they want to rent a room to a healthy, responsible younger person who provides them extra income while also being there for a sense of security and for aid or support if needed in an emergency,” he explains.
To find this type of opportunity, Frey recommends looking for the keyword “landlord” instead of looking for “room to rent.” Also, he notes that these types of living arrangements are often shared by word of mouth as opposed to being posted on social media or in the rental marketplace. “This is a good way to find a quiet, quality rental at a more reasonable price with a roommate who will probably be very happy to have you there,” Frey concludes.
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