Solo Renting Soars In Popularity
Renters are increasingly ditching their families and roommates to live alone, according to a report from RentCafe.
The number of solo renters increased 6.7% between 2016 and 2021, reaching 16.7 million people. Because of the pandemic and social distancing, there was a peak in 2020, reaching a record 17.7 million. Living alone is now the most popular living arrangement.
While the number of lone renters grew, renters with roommates became less common. After a 6.3 million peak in 2019, that number sat at 5.8 million in 2021. The number of people renting with family followed a similar path, dropping from 71.3 million in 2016 to 68.1 million in 2021.
Among the metros RentCafe analyzed, the city with the largest increase of lone renters between 2016 and 2021 was Salt Lake City, which saw a 24.9% boost. The report said cost of living and healthcare were key factors in the area's migration.
These factors were also present for the next three cities on the list, all in Texas: McAllen and San Antonio, where the share of solo renters grew 24.2% and 21.7%, respectively, and Austin, where the demographic grew 23.9%. Dallas also made it into the top 10. Texas' affordable housing crisis is leading more people to be long-term renters, a position many across the nation are in.
While apartment construction reached a 40-year high in the third quarter, renters are still experiencing skyrocketing rents. Earlier this month, the Supreme Court declined to hear a case on rent control in New York City that could have affected rent control laws nationwide and made a pathway for rent-stabilized housing. In July, the Biden administration called on landlords to eliminate surprise fees for tenants. As a result, a number of states passed legislation on the matter.
Baby boomers and millennials make up the largest proportion of people living alone, representing a cumulative 61% of solo renters. RentCafe reported that because of accessible shopping and services, as well as smart home tech, aging in place is becoming increasingly feasible.
Income is also a factor. Baby boomers need an income of about $50K to be a solo renter, which is $16K more than what an average renter would need to afford rent. Millennials represent 29.5% of Americans renting alone, and solo renters in this generation earn $56K on average, $22K above the average renter's income.
These two groups are followed by Generation X, who make up 21.3% of solo renters; the Silent Generation, representing 12.8%; and Gen Z, with 3.9%, or 640,000 people.
