It’s hard enough for families to afford housing in many areas of the country but the challenges are even greater if you are single.
A report by real estate broker Redfin underscores the significant financial challenges faced by single, divorced, or separated people in affording housing payments. According to the survey, nearly 70% of these individuals struggle to meet their rent or mortgage obligations, a stark contrast to the 52% of married people who report similar difficulties.
The report also found that 76% of people living with a partner but not married face the greatest financial strain in housing payments.
The disparity in housing affordability is largely attributed to the reliance on a single income among singles, as opposed to the dual-income advantage often enjoyed by married couples. The survey reveals that 63% of single respondents and 69% of divorced respondents have household incomes under $50,000 annually, compared to only 26% of married respondents.
At the same time, 29% of married respondents report household incomes of $100,000 or more, a figure significantly higher than the 7% of single and 6% of divorced individuals.
Tax policy also favors couples
Married couples also benefit from tax advantages that contribute to their financial stability, a factor that singles do not enjoy. Redfin Chief Economist, Daryl Fairweather said the high cost of housing tends to hit single people hardest because they can't pool resources with a partner to cover the same costs, unless they're willing to have roommates. Fairweather suggests local governments consider zoning for single-room housing and accessory dwelling units (ADUs) to alleviate the affordability crisis.
Despite the financial challenges, the majority of both single and married individuals manage to make their housing payments on time. Data from the U.S. Census Bureau’s Household Pulse Survey indicate that only a small percentage of homeowners, regardless of marital status, were late on mortgage payments as of September.
The financial burden of living alone is further illustrated by rental costs in major cities. In Washington, D.C., where over half of adults are single, a studio or one-bedroom rental averages $1,908 per month. A single person would bear the entire cost, while a couple could split the expense, resulting in a $11,448 annual difference. In Los Angeles, a similar scenario sees singles paying an additional $14,880 annually compared to cohabitating couples.
The report also highlights the sacrifices singles make to afford housing. More than a quarter of divorced or separated individuals and 21% of single people report skipping meals to meet housing costs, compared to 14% of married individuals. Additionally, non-married individuals are more likely to seek financial assistance from family or engage in side jobs to cover expenses.