The ‘Singles Tax’ Is Increasing: 3 Signs It’s Time To Get A Roommate
Written by
Gina Hagler
Edited by
Cory Dudak
Commitment to Our Readers
GOBankingRates' editorial team is committed to bringing you unbiased reviews and information. We use data-driven methodologies to evaluate financial products and services - our reviews and ratings are not influenced by advertisers. You can read more about our editorial guidelines and our products and services review methodology.
20 Years
Helping You Live Richer
Reviewed
by Experts
Trusted by
Millions of Readers
Renting alone has become harder in 2024, with an increase in the ‘singles tax’ — the higher cost that those living alone experience, as they are unable to split expenses with another person. The financial burden of the ‘singles tax’ also applies to things outside of the cost of housing, like food, transportation and medical care.
As a result, those renting alone, particularly in expensive cities like San Francisco or Boston, might find it’s time to get a roommate. Just what are the signs?
- The singles tax is rising. According to Zillow, the singles tax increased to $7,110 on average throughout the United States this year. On paper, this means that renters with roommates could save $14,220 annually. Depending on the city, the yearly savings could be much more significant. New York City, San Francisco, San Jose, Washington, D.C. and Boston each have a heftier ‘singles tax’ with corresponding significant discounts through coupling up.
- Having a roommate helps save money for a future home purchase. Prospective homebuyers save even more money if they find themselves able to split their current rent. According to Realtor.com, of the total renters interested in purchasing a new home who were surveyed, 44% are saving no more than $500 per month. With a roommate, you will likely be able to save much more.
- The rising costs of food and transportation are also factors. When it comes to other expenses, like food and transportation, there are practical reasons to have a roommate:
- Food and other supplies that are sold in bulk often have a lower cost per unit, which benefits a couple more than a single person who would potentially end up with wasted, expired food.
- Splitting the cost of car payments, maintenance and fuel is also possible with a roommate.
- The cost of streaming services and subscriptions adds up. With a roommate to share access to these entertainment options, having a roommate to split the cost means more money for other expenses.
You may have known that living alone costs more, but these signs of rising prices and other drawbacks due to the “single tax” make it clear that a roommate can make a huge difference.
More From GOBankingRates
