Redfin Report: 64% of Single Americans Struggle to Afford Housing, Compared With 39% of Married People

Single condo owners in Washington, D.C. pay nearly $18,000 per year more than someone sharing the mortgage with their romantic partner; in the Bay Area, the gap exceeds $40,000

SEATTLE--(BUSINESS WIRE)--Nearly two-thirds (64%) of single people struggle to afford their regular rent or mortgage payments, compared with 39% of married people. That’s according to a new survey commissioned by Redfin, the real estate brokerage powered by Rocket.

Many Americans struggle to afford housing because costs have surged over the last few years. Mortgage payments have increased due to a combination of elevated sale prices and mortgage rates that—while down from recent peaks—are still significantly higher than the pre-pandemic and pandemic eras. Renters face similar pressures, with asking rents climbing over the last few years (though rent growth has lost steam recently). Home-sale prices have risen nearly 50% since before the pandemic, while rental prices have risen about 20%. Wages have increased, but not as much as housing costs. Add in rising costs for just about all other day-to-day expenses, and millions of families are left with little cushion.

There are a few key reasons single people typically have a harder time making their housing payments than those who are married:

• Household income is lower for single people. Single people are stuck paying prices much better suited to a double income on a single-income budget; many married couples draw from two incomes, while many single people rely solely on their own income. Nearly half (48%) of single survey respondents report earning a household income of less than $50,000 per year, compared with just 9% of married people. On the flip side, married people are three times more likely than single people to earn household incomes between $100,000 and $500,000 (62% versus 21%).
• Single people face other financial disadvantages. Married couples also receive tax benefits that single people don’t get. And in many cases, married couples split the cost of other expenses like groceries, gas and childcare, so each individual has a smaller financial burden.
• Single people tend to be younger than married people. That means they’re earlier in their careers and haven’t yet hit their earning peak, and they have had less time to build savings. Additionally, many Gen Zers and millennials are still paying off student debt. This Redfin report on homeownership by generation delves deeper into reasons why it is more difficult for young Americans than older Americans to buy homes.

Married couples make up a smaller share of U.S. households than they used to, which Redfin economists say national and local governments should keep in mind when making policies to combat the housing affordability crisis. For instance, officials may consider zoning for ADUs and single-room housing, like dormitories. Policymakers may also consider cutting red tape and making it easier to build apartment complexes and condos full of studios and one-bedrooms.

A Look at the ‘Singles Tax” in D.C. and the Bay Area

Using Washington, D.C. as an example, here’s a breakdown of the extra cost of living alone. Redfin is using D.C. because more than half of its adult population is single, making it one of the U.S. cities with the biggest proportion of single people.

The typical condo in the D.C. metro area costs $379,000. A buyer’s monthly payment would be $2,974, using current mortgage rates and assuming a $566 HOA fee, the local median. A single person living alone would cover the whole cost themselves, while a married or cohabitating couple may split the cost and pay $1,487 each. Annually, a single person would pay a double-digit “singles tax” of $17,844.

Say you’re single and living alone in San Francisco, one of the most expensive housing markets in the U.S. The typical condo there costs $980,000, with a monthly payment of $6,950 (today’s mortgage rates and a $724 HOA fee, the local median). A single person would pay that alone rather than paying half ($3,475), giving San Francisco a “singles tax” of $41,700.

Affordability Concerns Keep Single Americans Stuck in Place

Single Americans are more likely than their married counterparts to cite lack of affordability as a reason they won’t be moving anytime soon.

Single people are nearly twice as likely as married people to say they’re not moving because they can’t afford the type of home they want to move to (26% versus 15%), and more than two in five (41%) single people say they’re not moving because moving is too expensive, compared with 27% of married couples.

To view the full report, including charts and methodology, please visit: https://www.redfin.com/news/struggle-afford-housing-single-versus-married

About Redfin

Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin’s clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at Redfin.com/news. For more information about Rocket Companies, visit RocketCompanies.com.