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Americans who live alone are paying a five-figure “singles tax” amid rising rents across the country, a new analysis shows.
Zillow data shows that the average apartment rent is currently $1,745 and has increased 30% over the past five years, placing a significant burden on renters who live alone and have no or more roommates to split the bill with.
The premium paid by individual renters was dubbed the “single tax” by Zillow, which found that the national average single tax is $10,470 per year.
“If you live alone, you’re paying the entire rent on one income, and that can add up quickly,” says Emily Smith, rent trends expert at Zillow. “Apartments often make living alone more feasible, while also providing shared spaces that help people feel connected.”
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New York City had the largest singles tax, which amounted to $23,400 per year, according to Zillow data. (Thomas Trutschel/Photothek via Getty Images/Getty Images)
New York City tops the list of areas with the highest singles taxes, as the typical apartment rent in the Big Apple of $3,900 per month equates to a singles tax of $23,400 per year.
San Jose comes in second, with an average rent of $3,248 per month and a singles tax of $19,488 per year. Boston was close behind in third place, with the typical rent in the city being $3,014 per month, resulting in a singles tax of $18,084.
A pair of California cities rounded out the top five, with San Francisco ranking fourth based on a typical rent of $2,857 and a singles tax of $17,142, while Los Angeles ranked 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)
Tenants who link their living arrangement to a partner receive what Zillow called a “couple discount” because they can split the home. rent invoice as well as utilities and other costs.
“For renters who choose to live with a partner or roommate, splitting daily costs such as rent, utilities and groceries can go a long way toward easing the pressure of today’s higher costs of living,” Smith said.
Based on the company’s national data, the discount for couples amounts to a combined annual rental savings of $20,940 by splitting the bill.
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Los Angeles ranks fifth on Zillow’s list of cities with the largest singles taxes. (iStock / iStock)
For example, given the significant singles tax in the cities with the highest rents, couples in New York City could receive a rebate of $46,800 instead of the singles tax of $23,400.
The report noted that the couple discount can go a long way toward helping renters save for a down payment on a home, with the national average couple discount of $20,940 more than halfway to a 10% down payment on a typical U.S. home, according to Zillow data.
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