The share of U.S. homeowners who are single reached a record high of 38.4% in 2018, according to the most recent available data from the U.S. Census Bureau. As home prices escalate, it may seem counterintuitive to see such high figures for single homeowners. Here are five reasons for the increase.
1. More Americans are single than ever before. Nearly 43% of adults over age 18 are single today, starkly contrasted to 28% forty years ago.
2. People are delaying both marriage and having children. Nearly 73% of people age 18 to 34 are single. That’s up from 67% in 2008 and up from 47% in 1980. Without dependents, many of these people are at income levels where they can afford a home on their own.
3. Single folks are joining forces. Unmarried couples are increasingly buying homes together as a way to build equity and get out of the rent cycle. Also, many single people who can afford a home help make ends meet better by having roommates who pay rent.
4. Rising divorce rates creates more single people. The divorce rate is up to 16.1% in people age 55 and older. A divorce can produce two single homeowners, where one often stays in the family home and the other buys a smaller home or condo.
5. Builders are slowly responding to the entry-level home market. According to the National Association of Home Builders, the share of homes built less than 2,400 square feet in size increased from 47% to 51%. This helps the starter home market with affordability.
Purchasing a home definitely isn’t getting any easier. The national median home price rose 52% since 2012, compared to an average growth in wages of 20%, according to the National Association of Realtors. That means singles are definitely better positioned to afford homes in lower cost-of-living areas. In Iowa, the average adult under the age of 35 only spends about 19% of her income on housing. A quarter of single young adults in Des Moines own homes! On the flip side, less than ten percent of young adults own homes in high-priced markets such as New York and San Francisco.