In San Francisco, the Singles Tax is $13,438 a year.
Being single and living alone has a lot of benefits, including peace and quiet, privacy, more space for your belongings, and the freedom to hog the sofa, laugh, cry, dance, sing, and decorate as you please. However, when paying rent, living alone can put you at a significant financial disadvantage. According to a new report by Zillow, nationwide, the singles tax is $7,110 per year.
“To find the singles tax, we calculate the annual amount that one person would pay in rent and divide that number in half, which is the additional amount a single person would pay when they do not split that rent with a partner or a roommate,” says Emily McDonald, Zillow’s rental trends expert.
While the nationwide average singles tax is a little more than $7,000, it can be much more depending on location. “In San Francisco, the average rent price for a one-bedroom rental was $2,240 in 2023,” McDonald tells me. “A single person renting that apartment would pay $26,880 for one full year of rent; however, if two people were splitting that rent, they would each be responsible for $13,438.”
These are the 10 cities with the highest singles tax.
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In some cities, the singles tax jumped significantly from last year. For example, in New York City, it increased $600. “In a city that’s as dense and in-demand as New York, personal space truly does come at a premium,” Kenny Lee, NYC-based economist from Zillow sister brand StreetEasy, tells me. Admittedly, New York City has historically been one of the most expensive rental markets in the country, but in the past couple of years, Lee says rents across the city have skyrocketed to their highest levels yet. “The city is facing a problem that’s been decades in the making: growing renter demand outpacing the creation of new housing supply,” he explains.
Rent Affordability
According to Zillow’s Observed Rent Index, the average asking rental price was $1,959 in February 2024. “This is up 0.4% month-over-month, and up 3.5% from last year,” McDonald says. However, she notes that it’s up 29.9% since the start of the Covid-19 pandemic. And the rent increases weren’t limited to the usual suspects – in fact, rent is up in 47 out of the 50 largest metro areas. “Annual rent increases are highest in Providence (8.1%), Cleveland (6.9%), Louisville (6.7%), Hartford (6.4%), and Cincinnati (6.4%),” she shares.
And now, McDonald says the income needed to comfortably afford a typical rental is $78,379.
A 2024 report by the Harvard Joint Center for Housing Studies reveals that 22.4 million renter households spent more than 30% of their income on rent and utilities. And for 12.1 million households, those costs equaled more than half of their income. The singles tax may force some of these renters to live in less desirable areas if they want to avoid co-renting. In the past, many experts would recommend purchasing a home as a more affordable option. However, home affordability is also an issue, leading to various types of co-ownership scenarios with friends and family members.
Living alone provides many advantages, but the Singles Tax isn't one of them.
“While the slight easing in rent growth offers a much-needed breather for renters, keep in mind that rents are still nearly 30% higher than pre-pandemic times, and affordability is still a major issue,” McDonald says. For renters who plan on either getting a new lease or renewing their current lease, she believes that this slowdown in annual rent hikes (from the sky-high peaks of the last few years) is definitely welcome news.
However, wages are not keeping up with rent — especially for those subject to the singles tax. “The reality of needing a higher income to afford rent is a stark reminder of the challenges in our current economy,” McDonald says.
According to Zillow, the least affordable metro areas to rent in are Miami (42.4% of monthly income is spent on rent), New York (38.7%), Los Angeles (36.8%), Riverside (33.3%) and Tampa (33.2%).
McDonald says the most affordable metro areas are Minneapolis (19.8% of income is spent on rent), Salt Lake City (19.8%), St. Louis (19.9%), Austin (20.3%), and Buffalo (20.6%).
Rental Concessions
Rental concessions are discounts, incentives, and adjustments designed to attract tenants. For example, a landlord may offer one month free on a 13-month lease or lower the monthly payment amount for a 15-month lease. McDonald says Zillow is seeing a small dip in the share of rentals offering concessions: “However, it’s not anything for renters to worry about yet, especially if they’re planning to sign a lease this spring.” Overall, she says they’re high compared to what they used to see, which means the market is still finding its feet after those tumultuous pandemic years. “So, while the drop is small, it tells us the market is buzzing with a bit more competition and also some good deals sticking around,” McDonald explains.
Advice For Single Renters
If you prefer the single-while-renting lifestyle — but your wallet is being pinched —it’s a matter of deciding what’s more important, and what type of compromises you’re prepared to make. “ For example, McDonald says you might want to explore more affordable neighborhoods.
Another option is to decide what amenities you can live without—for example, she says you may want to trade the convenience of an in-unit washer/dryer for lower rent. “But keep in mind that each decision is a reflection of your personal lifestyle priorities,” she notes.
And if you’re in the mood to explore new cities, consider moving to one with a lower cost of living. But McDonald cautions against seeing the singles tax merely as a financial challenge. “It's a symbol of your independence,” she notes. “So embrace the value of your own space and the freedom to personalize it to your taste."
