Renting alone is the fastest growing form of living in the US

US housing inventory is increasing slowly as sales have declined in recent months – Copyright AFP Asif HASSAN

There are 16.7 million people in the U.S. who rent by themselves. This is a figure that is three times the population size of the Phoenix metro. While there are many social reasons why people live alone, by choice or due to circumstances, this comes at a cost.

In more expensive cities, this option comes at a premium: Renters who live alone need to earn an extra $8,600 per year.

This is according to research from the property firm Rent Café, who have passed on the outcomes to Digital Journal for assessment. The report is titled “16.7 Million Americans Are Renting Alone”.

Looking through the data, it is apparent that Baby Boomers and Millennials take the largest slices of solo renting (a sign of how the “gray divorce” phenomenon is on the rise), while very few Gen Zers are venture on their own, preferring to explore sharing options.

Gen Z is the only renter-majority generation with a 74 percent share of the rental market. There has been a 4.5 million increase in renters in the last five years.

Renting alone has grown significantly in the past decade. As a living arrangement, solo renting increased by 1.1 million people (or 6.7 percent), while renting with a roommate grew by only 324,000 people (5.9 percent). Living with as part of a family decreased the most, by 3.2 million people (down 4.5 percent).

In terms of the most expensive areas, renters need to pay a premium for living alone in California and in the U.S. capital. Here, San Jose; Santa Maria; Salinas; Washington, D.C.; and Los Angeles, are identified as having the biggest gap between the income of an average renter versus a solo renter.

This represents $1,500 to $2,500 in extra income each month to afford living alone in those locations.

In terms of more affordable solo renting, the leading areas are Ohio’s Akron, Toledo and Dayton, as well as Pittsburgh, PA, and Providence, RI, where an individual would need between $250 and $390 per month in extra income to live by themselves.  Salt Lake City, together with Texas’ Austin and San Antonio and Charlotte, NC, carries the highest rise in renters living alone. Here, people renting alone grew between 20 percent and 25 percent in recent years. Salt Lake City alone gained 10,000 people renting alone in five years.