Residents who opt for solitary living in this urban area incur the highest expenses.
In the vibrant heart of the city that never sleeps, solo dwellers shell out an average of $20,100 more annually compared to those sharing a one-bedroom pad with a partner. This intriguing finding stems from research conducted by real estate giants StreetEasy and Zillow, the latter owning the StreetEasy brand.
The analysis underscores the added financial burden of embracing solitude in a one-bedroom New York City apartment. Conversely, sworn partners sharing the same space manage to save a whopping $40,200 each year on rent – an eye-popping difference!
Cities with sky-high rent, like San Francisco, San Jose, California, and Boston, also come with a hefty "singles tax" price tag. However, the Big Apple takes the crown as the most expensive city to live alone in a one-bedroom apartment.
Across the United States, the typical annual savings for cohabitating renters amounts to $15,123. This savings is more than $25,000 less than the New York City average, emphasizing the substantial single dweller premium.
Emily McDonald, Zillow's rental trends expert, attributes this discrepancy to the high demand for living solo in NYC, which leads to major inflated costs. "For a lot of people, it comes with a lot of value," she added.
The report indicates that Manhattan is the borough where couples who share an apartment reap the most financial benefits. One-bedroom rental rates in this coveted district hover around $4,200, contributing to substantial savings for duos sharing the space.
The research highlights the mounting pressure on rental costs in major cities. Nearly half of all US renter households paid more than 30% of their income towards housing expenses in 2023, qualifying them as "cost-burdened" – according to the latest government data available.
Detroit, Chicago, El Paso, and Cincinnati are among the major US cities offering a more affordable "singles tax," according to Zillow data.
As home prices continue to soar, and average mortgage rates approach 7%, families are staying in the rental market longer in many cities, contributing to fierce competition for rental units.
However, recent data reveals that the rent growth trend across the nation has started to plateau. Zillow's January report shows an increase of just 0.2% in the average US rent, a notable decrease with respect to historical monthly rises before the pandemic. In addition, over 41% of landlords offered incentives, such as concessions, to lure tenants during January, achieving a record-high in Zillow's data.
Nonetheless, McDonald advises those contemplating the cost of living alone to carefully examine their budget before making a decision. "Beyond just rent, you’re going to be paying utilities alone, internet alone," she emphasized. "Household essentials cost more when they’re not split."
- In contrast to singles, those sharing a one-bedroom apartment in New York City save an average of $7,530 annually on rent, highlighting the significant impact of cohabitation on rental expenses.
- The average annual savings for cohabitating renters across the United States is lower than in New York City, with singles incurring an additional 'average of $15,123' compared to their shared counterparts.
- The high demand for living solo in New York City contributes to a '753' premium for singles, as they pay an average of $20,100 more annually compared to their cohabitating counterparts.
