The landscape of housing in the US is transforming as solo renting gains unprecedented popularity among various generations, according to the most recent data from Yardi Matrix. The latest report reveals that the number of solo renters in the US has experienced a significant surge between 2016 and 2021, marking a 6.7% increase, equivalent to one million people, bringing the total to 16.7 million individuals. This trend, which accelerated notably during the pandemic-ridden year of 2020, may shape the future of housing dynamics
Generational shifts: baby boomers and millennials Lead the Way
The surge in solo renting is notably driven by baby boomers and millennials, who have emerged as the champions of living alone in rental properties. Baby boomers constitute the largest demographic within the solo renting population, accounting for 32.4%, or 5.3 million, of solo renters in the US. Their ability to age in place, thanks to technological advancements and the “grey divorce” phenomenon, has paved the way for this presence of solo renters among the baby boomer generation.
On the other hand, despite many millennials transitioning into homeownership, a considerable number – approximately 4.8 million – continue to embrace solo living arrangements in rental properties. Millennials now represent 29.5% of solo renters in the US, reflecting their willingness to prioritise independence and space, often at a premium cost.
Geographic solo renting: Salt Lake City is out front but Texas dominates the top 10
The geographic distribution of solo renters across the nation is far from uniform according to the report. Salt Lake City stands out as the city with the most significant surge in solo renters, experiencing a staggering 24.9% increase between 2016 and 2021, reaching a total of 50,265 solo renters. The city’s flourishing healthcare, technology and energy sectors, combined with a relatively affordable cost of living, make it an attractive destination for those seeking solo rental accommodations.
Texan cities also make a strong showing in the top ten metros for solo renters. McAllen, Austin, San Antonio and Dallas have all experienced substantial growth in the number of solo renters, with Austin standing out with a 23.9% increase. The Lone Star State's growing tech industry and affordable living options have propelled its cities to the forefront of solo renting trends.
In contrast, Philadelphia and Indianapolis lead the pack with the largest share of solo renters, both at 20%, after witnessing increases of 12.7% and 12%, respectively, in the past five years. These cities offer attractive living environments for those who prefer to rent alone.
Affordability matters: Ohio cities shine for solo renters
While solo renting often comes with a premium cost, some cities in Ohio provide an affordable and high-quality lifestyle for solo renters. Akron emerges as the most financially favourable metro for solo renters, where renters living alone earn an average annual income of $30,520, surpassing the average renter's income by $2,136 per year. Toledo, Dayton and Cleveland also rank among the top ten metros offering the best value for solo renters.
The California challenge: high costs for solo renters
In contrast, California presents a significant challenge for solo renters due to the high costs of living and housing. In San Jose, those who choose to rent alone must earn an average income of $93,288, making 37% more than the average renter. The discrepancy in income between solo renters and average renters is similarly pronounced in Santa Barbara, Salinas, Los Angeles and San Francisco, all of which require significantly higher incomes for solo renting.
[Read more: Study reveals the most affordable suburbs in the US]
