Thinking of ditching roommates and flying solo?
Before you take the plunge, know this: living alone isn’t just about extra space—it comes with a hefty price tag. We’re diving into:
- How much more you’ll need to budget
- How living solo stacks up against sharing
- How do you know if you are financially capable of living alone
- And the cities where you can (or can’t) afford to live on your own.
Ready to see if you’re financially set for living on your own? Let’s break it down!
How Much Extra Does Living Alone Really Cost?
For Gen Z, the dream of living alone is getting pushed further into the future, with many finding it increasingly difficult to rent without a roommate. In fact, for some, adulthood—meaning renting solo, buying a home, or owning property—might not come until their mid-30s. A Reddit user from Gen Z summed up the frustration:
“I did everything right—went to community college, saved money, worked two jobs—but I’m still stuck living at home, barely able to cover the essentials, let alone think about moving out.”
To shed light on just how much extra it costs to live alone, we surveyed our Diggz audience. We analyzed our data to compare the budget differences between solo living and having roommates, and the results were telling. Around 10% of Diggz users, upon their search for housing and roommates, indicated that they ended up living alone. The budget differences the two opposing parties set are telling.
For example, in New York City, the average budget for someone living alone is about $2,020, while those looking for roommates have an average budget of $1,518. Across other major cities, the same pattern holds:
These figures reveal that moving from shared living to solo living requires about a 30-40% increase in your overall budget, a substantial financial shift.
This 30-40% hike in expenses often includes higher rent, utilities, and personal costs, such as grocery bills. Living alone also means shouldering 100% of household expenses, which can add up fast. A report by the National Apartment Association states, “Utilities and other housing-related costs like internet and maintenance can increase by 20-30% when you live alone, simply because there’s no one to split the bill.”
If you’ve recently landed a promotion or have been able to reduce unnecessary expenses, you might be ready to transition to solo living.
So, the rule of thumb is straightforward for anyone looking to make this shift: ensure your income and budget can absorb an extra 30-40% over your current expenses before deciding to live solo.
Signs You’re Financially Ready to Live Alone
According to Abid Salahi, finance expert and co-founder of FinlyWealth, there are key indicators to determine if you’re financially ready to live on your own. If you can check these boxes, you’re likely set to go solo:
Rent’s Covered—and Then Some
A good rule of thumb is that your rent shouldn’t exceed 30% of your total income. If you’re living in a pricier city, you can stretch that limit to 35%—but that’s the absolute max. Going beyond that threshold could leave you teetering on the edge of living paycheck to paycheck, with little room for emergencies or savings.
Utilities Won’t Break the Bank
In some cases, landlords will cover utilities like water or gas in the rent, but if not, expect to pay an additional $300 to $600 per month for essentials like energy bills, internet, and water. Before making the move, research utility costs in your area to avoid any surprises. Cities with extreme weather could drive up energy bills during peak seasons.
You Can Furnish Your Space
It’s fine to get by with a mattress and a couch initially, but eventually, you’ll want to create a space that feels like home. Furnishing an apartment can be a significant expense, especially if you’re starting from scratch. Experts estimate that a basic furniture setup—including a bed, couch, dining table, and other essentials to add to your new apartment—can cost anywhere from $3,000 to $5,000 or more. It’s crucial to ensure you have enough savings to cover this without draining your emergency fund.
Handling Higher Grocery & Living Costs
The cost of groceries and everyday living is on the rise, and economists predict this trend will continue steadily. So, it’s important to ask yourself: Will your income keep up with inflation? Can you comfortably handle the increasing costs of food, housing, and other essentials without feeling financially squeezed?
Your Career’s on a Solid Path
“If you’re in a field with solid growth prospects, you may be able to stretch your budget a bit more,” says Salahi.
Job stability is key when planning to live alone, as it ensures a steady income stream and gives you confidence in taking on long-term financial commitments like a solo lease.
In Which Cities Will You Need a Roommate (or not)?
Housing is typically the biggest chunk of any budget, and a common rule of thumb is that cities with higher rents usually necessitate roommates.
But here’s a twist: sometimes, snagging a 3-bedroom apartment with two friends can save you more than living with just one. Take San Francisco, for instance. If you’re sharing a 2-bedroom, you might save around $9,000 a year. But if you opt for a 3-bedroom, that savings could skyrocket to $13,000!
Now, let’s dive into the cities where you’re most likely to need a roommate—and those where you can comfortably fly solo.
Cities Where You’re Most Likely to Need a Roommate
Double-up households are ones where you’ve got at least one “extra” adult over 18. They are all the rage in cities where multigenerational living and sky-high rents collide. Hawaii and California are prime examples of states where double-up households are widespread.
Why do people double up? Simple—rent’s higher and the budget difference between living solo and sharing a space is significant.
If you are looking to rent in any of these expensive cities, best to strap yourself in with a roommate (or two):
1. New York
It’s no secret that New York is one of the priciest cities in the U.S. Unless you’re backed by old money or have found yourself in a particularly “charming” (read: rundown) corner of the city, living with roommates is practically a rite of passage. Most double-up households in New York consist of three or more roommates, and the numbers explain why.
According to Zumper, a 1-bedroom apartment in NYC averages a staggering $4,457, while a 3-bedroom goes for about $7,463. By splitting the rent three ways, you’re looking at saving nearly $2,000! That’s one of the biggest rent reductions you’ll find, making roommates the real MVPs of the New York housing market.
But here’s the thing—NYC is a massive city with a range of rental prices. The averages are wild, swinging from outrageous to, well, surprisingly manageable. If you’re strategic, you can absolutely find more affordable NYC neighborhoods to make solo living (or at least a smaller roommate situation) a reality.
2. San Francisco
San Francisco offers some serious savings potential too. While a 1-bedroom apartment will set you back around $2,872, a 3-bedroom averages $5,347. Sure, the savings may not seem as mind-blowing at first glance, but there’s more to it.
In California, a room can only officially be listed as a bedroom if it has a closet. That means many “office” or “bonus” rooms sneak their way onto the market with lower price tags, offering some extra flexibility for renters. Plus, the SF rental market fluctuates with the seasons. Winter brings a wave of lease terminations, and landlords are eager to fill vacancies. You’re much more likely to find rooms available with roommates rather than scoring a solo studio or 1-bedroom.
3. San Diego
San Diego is another Californian city where living with roommates can offer significant savings. On average, splitting the rent with roommates can save you around $1,000, which is no small amount in a city known for its high living costs. It’s no wonder that about 42% of adults here live in double-up households with three or more roommates.
According to our Diggz data, living solo can increase your budget by a whopping 37%. If you aren’t rolling in cash, living with a roommate is the way to go.
4. LA
Well, well, what a surprise—another expensive Californian city! Los Angeles is pricey enough with roommates, but going solo? That’s a bold (and costly) choice. A 3-bedroom apartment averages around $5,620, while a 1-bedroom goes for about $2,482. By living with a roommate in this swanky city, you can save around $900—enough to ease the sting of LA’s steep housing market and maybe even enjoy some of its glamorous perks.
For Diggz users who decided to live solo in LA, they increased their budget by 25% to make it work. Whether that extra 25% is worth it depends on how much you value your personal space over extra savings and shared expenses.
5. Miami
Miami’s skyrocketing rents are the latest trend, and despite an ample housing supply, prices continue to climb steadily. If you’re planning to live solo in the city, be prepared to shell out around $2,876 for a 1-bedroom. And if you’d set your eyes on a new swanky building in South Beach, Brickell, or Edgewater, expect to pay more. A lot more. However, opting for a 3-bedroom and splitting the rent can save you about $1,000. With the South Florida housing market becoming increasingly tough on renters, living with roommates in Miami has officially become a rite of passage.
Cities You Might Afford to Live Alone
Some of the best cities for renters are the ones you can afford to live alone in.
In the 100 most populous U.S. cities, 1-bedroom apartments make up about 20% to 25% of available rentals. So, while some cities might seem pricey, the savings from living with roommates can be minimal. Sometimes, finding a solo pad can become a much more attractive option—after all, who needs a roommate’s questionable music taste or late-night snack habits?
If you plan to live alone, here are some of the best cities to do that in:
1. Houston
Houston is one of the more affordable cities in the U.S., and you won’t be saving bucketloads by opting for a roommate. A 1-bedroom apartment costs around $1,361, and you can easily find plenty of options well below that average. A 3-bedroom, on the other hand, goes for about $2,482, meaning you’d save around $500 by sharing the rent. With rents this reasonable, Houston is definitely a city where you can afford to live solo without breaking the bank.
2. Austin
Another Texan city, Austin, offers decent savings when living with a roommate, averaging about $653 in rent reduction. For some, that’s enough to make rooming up worthwhile. A 1-bedroom apartment here goes for around $1,648, while a 3-bedroom costs about $2,985.
According to Diggz’s data, Austinites aiming to live solo budget around $1,180—a figure only 18% higher than those sharing with roommates. This makes solo living a viable option for many.
What’s more, Forbes ranked Austin in the top 10 cities for renters. Austin saw one of the best rental price changes in the last year, with rents dropping by $250, compared to the study average of just $43. It also ranks high for available rentals, with 399 per 100,000 households versus the average of 164. With a higher supply and dropping rents, Austin is quickly becoming an affordable city for solo living.
3. Phoenix
Phoenix, on the other hand, doesn’t make a strong case for sharing space. You’d only save about $4,020 a year living with three roommates—that’s hardly worth the potential loss of peace and privacy. In fact, opting for a 1-bedroom or studio apartment in Phoenix is often a much wiser decision. A studio averageOpting, and a 3-bedroom costs about $2,495. So if you’re aiming for a balance between affordability and sanity, going solo in Phoenix might just be your best bet.
4. Dallas
In Dallas, adding a roommate to the mix will save you anywhere between $100-$400 a month—not a huge amount and perhaps not worth the hassle.
According to our data, the budget difference between living alone and with roommates is only around 16%. On average, people set aside $890 when living with roommates, compared to $1,030 for solo living. Given the modest savings, it might be best to take the plunge and live solo instead.
5. Atlanta
In Atlanta, a 3-bedroom apartment rents for around $2,521, while a 1-bedroom goes for $1,515. Splitting the rent with roommates can be a smart financial move, but Atlanta is also a city where living alone is within reach for many.
What’s more, finding a 1-bedroom apartment is significantly easier than locating a 3-bedroom. In fact, the supply of 1-bedroom apartments is 280% higher than that of larger units. This means you can often find a 1-bedroom for less than the city average. Our Diggz data indicates that you’d only need to increase your budget by about 4% to live solo—and many users find 1BD apartments for as low as $913.
The 30-40% Rule: How to Use It to Plan Your Move
What is the 30-40% rule? If you can increase your budget by 30-40%, either by cutting current expenses or getting a raise, you’ll likely be able to afford to live alone. The 30-40% rule is a useful guideline for transitioning from living with roommates to going solo.
However, your location plays a big role. In high-cost cities like San Francisco, New York, and LA, the savings from living with roommates can range from 20% to 50%. In these areas, the cost-sharing advantage may make roommates a better financial choice. But in more affordable cities like Austin or Phoenix, solo living could be a more viable and appealing option due to lower rent costs for one-bedroom apartments.
All in all, if your budget is below $1,200, it makes more financial sense to get a roommate than to live on your own.
Bottom Line
Living solo might be the dream, but it’s not always financially doable—especially in cities with sky-high rents. Whether you’re looking to save money by sticking with roommates or are ready to level up to solo living, the key takeaway is clear: budget wisely! Make sure you’re factoring in all the additional costs and doing the math before making any big moves.
If you’re leaning toward finding roommates to lighten the load, check out Diggz to match you with like-minded people looking to share a space near you. Ready to start the search?