‘Singles tax’: What is it, how living alone can cost an extra $10,000 per year? Details here

Americans living alone have to pay around $10,000 more per year than those who share living accommodations, as per the latest data from Zillow.

Americans who live alone might end up paying $10,000 more per year than their counterparts who share living accommodations. This report from Zillow, the real estate marketplace, comes right ahead of Valentine's Day. They have dubbed this cost the national ‘singles tax’.

Staying alone costs more than sharing an accommodation, a recent report showed. Image for representational purposes. (Pixabay)

As per data from Zillow, the renters living alone now pay an average of $10,470 more each year than those who share their homes. The report seeks to highlight the drastic price difference while keeping in mind that living solo brings its own perks, like privacy and control over one's space. “Love isn't just romantic, it's economical,” the Zillow report reads.

What is ‘Singles Tax’ and how does it work?

As per Zillow, the ‘singles tax’ is the extra amount a person has to bear to stay alone rather than share lodging. Renters who choose to live solo end up paying more than those splitting the lease, data shows.

As per the company's analysis, renters who share one lease rather than maintaining two different households can save up to $20,940 together, per year, when it comes to rent. This has been labelled as ‘couple’s discount' which can potentially free up thousands of dollars every year for other expenses, or even to add to one's savings.

“When you're living alone, you're covering the full rent on one income and that can add up fast. Apartments often make living solo more attainable, while also offering shared spaces that help people feel connected. And for renters who choose to live with a partner or roommate, splitting everyday costs like rent, utilities and groceries can go a long way in easing the pressure of today's higher cost of living,” a Zillow rental trends expert said.

Data from the report shows that New York is the most expensive market for renters who live alone. Solo renters in the Big Apple end up paying $23,400 more per year than those who choose to share housing. San Jose comes second, followed by Boston.

However, these are the very same places where finding shared accommodation can result in the biggest payoffs. “In New York City, San Jose, Boston, San Francisco, Los Angeles and San Diego, renters who share housing can save more than $30,000 per year,” the report reads.

Despite the high costs, the report noted that apartment affordability is at its level best since April 2021 once one takes into consideration the rising incomes. This is bound to spell relief for some renters. As per another recent analysis renting rather homeownership is now cheaper by up to $548 a month.