A survey sponsored by real estate firm Redfin revealed 64% of single people in the United States struggle to afford their regular rent or mortgage payments compared to 39% of married people.
The cost burden can limit singles’ financial options especially in contrast to couples who can split costs and can spend the money left on other necessities and discretionary purchases, including more attractive housing, according to Redfin.
Home prices, mortgages and rents have trended upward for several years, particularly in the municipalities that have traditionally attracted young people, including major cities, although housing costs have weighed more heavily in much of the United States. Although some housing-related costs have come down off peaks, the cost of shelter has generally exceeded gains in wages, Redfin pointed out.
There are several reasons for the singles’ struggle, including paying prices that have been conditioned by demand generated by double-income couples. Overall, 48% of singles responding to the Redfin survey reported earning a household income of less than $50,000 per year versus 9% of married people. In comparison, married people were three times more likely than single people to earn household incomes between $100,000 and $500,000, at 62% versus 21%, Redfin noted. Moreover, many single Gen Zers and Millennials are still paying off student debt.
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, at 26% versus 15%, respectively,. Some 41% of singles responding to the survey said they’re not moving because the process is too expensive compared with 27% of married couples.
Single people face other financial disadvantages, Refin added. Married couples also receive tax benefits that single people don’t. And, married couples generally split the cost of expenses such as groceries, gas and childcare, so each individual has a smaller financial burden.Single people tend to be younger than married people, earlier in their careers and not yet near their earnings peak, and they have had less time to build savings, Redfin noted.
