Navigating the current housing market is tough, but for single Gen Z buyers, it’s a whole other level of borderline impossible. With home prices soaring, mortgage rates remaining high, and rent still at historically inflated levels, going solo in the housing market is proving to be a serious financial struggle. A recent Redfin report highlights just how difficult it is for single individuals to manage housing costs compared to their married or partnered counterparts.
Sky-High Struggles for Singles
The data paints a bleak picture for solo homebuyers. Nearly 70% of single, divorced, or separated individuals are having trouble making their monthly housing payments. Compare that to 52% of married people facing similar challenges. And if you think non-married couples are faring better, think again—76% of them are struggling the most.
So why are singles having a harder time? It comes down to income, financial stability, and access to resources. Unlike married couples, single buyers don’t have the cushion of a second income to help offset mortgage payments, down payments, or unexpected housing costs. This makes homeownership a steeper climb, especially in today’s market.
The Income Gap: A Brutal Reality
One of the biggest hurdles for single Gen Z homebuyers is income disparity. The numbers from Redfin reveal that 63% of single people and 69% of divorced individuals earn less than $50,000 annually. While this varies by location, only 26% of married couples fall into this low-income bracket.
The disparity is even more glaring at the top end of the income scale. Less than 10% of single or divorced individuals earn over $100,000 a year, whereas nearly 30% of married couples reach that financial milestone. This income gap directly impacts purchasing power, savings potential, and the ability to qualify for a mortgage with favorable terms. Without a strong income, single buyers face additional obstacles, from stricter lending requirements to higher interest rates due to lower debt-to-income ratios.
The Price of Being Single
The financial burden of homeownership isn’t just about income—it’s also about missing out on the perks that married couples enjoy. Tax benefits, better loan approval odds, and shared financial responsibility all play a role in making homeownership more attainable for couples than for individuals.
Housing costs can be so overwhelming for single buyers that many are forced to make difficult lifestyle choices. According to Redfin’s report, 27% of divorced or separated individuals admitted to skipping meals just to afford housing expenses. Similarly, 21% of single people reported doing the same. Meanwhile, only 14% of married individuals found themselves in this dire situation.
These numbers highlight how single homebuyers are often living paycheck to paycheck, sacrificing essential needs just to keep up with the cost of living. The reality is that without the financial advantages of a partner, solo buyers are at a severe disadvantage in today’s real estate market.
Higher Mortgage Rates, Higher Strain
Even if single Gen Z buyers manage to save enough for a down payment, they still face a tough mortgage environment. Home prices and mortgage rates are currently at or near two-decade highs, making it harder than ever for solo buyers to secure affordable housing.
While experts predict that affordability might improve slightly in the coming years, the current conditions remain far from ideal. High interest rates mean higher monthly payments, and with housing supply still tight, home prices aren’t dropping significantly anytime soon. This creates a catch-22 situation where even if single buyers can qualify for a loan, they may struggle with affordability in the long run.
Rental Costs Are Still High
For those who aren’t quite ready to buy, renting isn’t much better. While rental increases have slowed in some areas, they are still roughly 20% higher than they were before the pandemic. This means that even saving for a home is a challenge when so much of a single person’s income is going toward rent.
The problem is exacerbated in major metropolitan areas where rent remains at historic highs. Single Gen Z renters often find themselves spending over 30% of their income on housing—leaving little room for savings, investments, or emergency funds. Without a financial cushion, the dream of homeownership continues to feel out of reach.
Potential Solutions: What Needs to Change?
The Redfin report suggests several potential solutions that could help level the playing field for single homebuyers. Some of these include:
- Zoning changes: Adjusting zoning laws to allow for more multi-family and affordable housing developments could help alleviate some of the inventory issues.
- Expanding access to accessory dwelling units (ADUs): Also known as granny flats or in-law units, these smaller, independent living spaces could provide more affordable housing options for single buyers.
- Higher density options: Encouraging the development of townhomes, condos, and co-living spaces could make homeownership more accessible for those who don’t need (or can’t afford) a traditional single-family home.
The Bottom Line
For single Gen Z buyers, the housing market is a tough and often unfair playing field. Without the benefit of a second income to help manage costs, many are left scrambling just to make ends meet. The combination of high mortgage rates, rising home prices, and an ever-present income gap creates an environment where single buyers face significantly more challenges than their married counterparts.
Unless systemic changes are made to improve housing affordability and access, the dream of homeownership will continue to slip further out of reach for many single Gen Z individuals. In the meantime, financial literacy, creative housing solutions, and policy changes will be key to helping solo buyers find a way forward in an increasingly difficult market.
