Buying a House As a Single Person in a Market Geared for Two

More than two-thirds of people who buy a home these days are married, according to a report from the National Association of Realtors. In a housing market that feels more unaffordable by the day, that figure makes sense. After all, it should be easier to buy a home when you have two incomes to work with instead of just one.

But while home prices are rising, the proportion of married people has only gone down, with about 47% of households headed by married couples these days (from a peak of 79% in 1949), says USAFacts.org.

While they may not be the majority, singles are still purchasing homes in today’s market, although they may have a harder time buying on one income. If you’re single – whether by choice or by circumstance – affording a home can legitimately be a struggle. It’s not just you.

While the average U.S. worker's monthly income is $5,022 according to the Bureau of Labor Statistics, the average house is $419,200. At a 7% example interest rate and 5% down, the full house payment on the average home might be $3,357 per month according to a mortgage calculator. That's 67% of pre-tax salary, much too high to qualify for a mortgage and an unwise portion to spend anyway.

So how are singles doing it? Here’s what we found.

Single Buyers in Today’s Market

NAR data shows that married couples account for the largest share of buyers, at 62%. After that, 20% are single women and just 8% are single men. Unmarried couples make up 6% of the market, per NAR data.

It’s important to point out that there are, of course, many different ways to be “single.” Some people are single, living on their own; some live with roommates (platonic or otherwise). Some have never married or entered a civil union or domestic partnership – and they may have no intention of doing so, either. Some are unmarried yet coupled up, while others are separated or divorced. And single doesn’t always mean solo; many of the single people who own homes are also parents, sharing their home with children.

Regardless of relationship status, though, singles are nearly a third of homebuyers today, even as rates and prices trend upward more quickly than wages.

The Income Challenge

The number of single buyers vs married ones would be nothing more than a data point if it didn’t also intersect with affordability.

Buying a home hasn’t been quite this challenging since the 80s, as we’ve found. And it’s not like renting on your own is a big money-saver, either. According to a Zillow study, “the price of independence” is actually $7,500, in what its real estate experts call “the singles tax.” That’s the extra amount annually that single renters spend compared to renters who split costs.

“Nationwide, couples or roommates sharing a one-bedroom rental collectively save $15,123 annually, proving that love (or at least one roommate) can be financially rewarding,” quips the company in a Valentine’s Day news release.

It makes sense that it’s much easier to afford a home as a couple. Redfin data finds that 63% of singles and 69% of divorced people had a household income under $50,000 a year. Just 26% of married households had an income under that threshold. Nearly a third of married couples brought in more than $100,000 a year, but only 6% of singles and 7% of divorced people did.

A recent Mortgage Research study ranked the 100 most affordable U.S. cities for homebuyers. Even in these areas, the single buyer would be hard-pressed to afford a monthly payment using less than 50% of the area's income.

Assumes area median income for the metro, median home prices from Realtor.com, 10% down, an example 7% 30-year fixed, typical taxes, insurance, PMI.

Buying a home on what equates to half the income is challenging, and it’s only part of the equation. Rising taxes, insurance costs, and inflation also complicate the picture. And debt – even so-called good debt, like student loans – can eat up much more of a single person’s salary compared to a couple’s combined income. The higher the ratio of your debt to your income – your DTI – the tougher it can be to get approved for a mortgage.

If you’re self-employed and covering your health insurance, too, with no partner to provide additional financial stability, it can make purchasing a home seem even farther out of reach.

But there are ways to get around that.

6 Strategies for Single Homebuyers

Kelly Cort is a senior loan officer based in Northern California, helping buyers across the U.S. navigate a tough housing market. One of her most recent success stories involved a young, single, female buyer.

“We just closed for a single woman five days before her 25th birthday,” Cort said in a phone interview.

What was her secret? “She has a good job, lives within her means, has a little bit of savings, and had good coaches,” Cort said. Oh, and she lived rent-free for a time, too. That allowed her to save up enough to buy a home in Virginia for $283,000 with 5% down, Cort said.

Although a rent-free lifestyle isn’t always feasible, the experts we talked to agreed there are some things single buyers can do to make it easier to buy a home.

1. Build Strong Financial Habits Early

“The key is building strong financial habits early,” says Tiffany Shannon, a licensed real estate agent.

As a Realtor based in a college town (College Station, Texas, home to Texas A&M), Shannon has more than five years of experience working with young, single, and first-time buyers.

“Start saving as soon as possible—set up a high-yield savings account and automate deposits, even if it’s a small amount each month,” she advises. “Simultaneously, focus on boosting your credit score—open a credit card, use it responsibly, and make on-time payments.”

Talking to a loan officer early in the process – even earlier than you think – can also help you understand what moves to make.

“Sometimes it is just as simple as putting people on a savings plan,” says Mark Anderson, a Missouri-based senior loan officer with Guild Mortgage. “You know, ‘You've told me you want to move fast on this. So how long is it going to take you? Two to three months?’ Then we'll revisit.”

2. Shop Small

The concept of “starter homes” doesn’t only apply to families. Consider purchasing a smaller home – a condo, a townhouse, a two-bedroom. The price point of these homes is typically lower, and you can upgrade to a larger home down the road.

“Buy smart,” advises Shannon. “Your first home doesn't need to have all the bells and whistles; you don't need to 'go big' the first time around,” she says. “Focus on finding something that’s well within your budget and easy to resell when you've built equity, setting you up for your next move.”

With the average 5-year return on homes at 26%, according to Realtor.com data, you may not have to wait long.

3. Get a Little Help

While earning a lower income may seem like a disadvantage, there is one area where it could be a bonus: qualifying for down payment assistance programs. Check with your state, local, or county housing finance authority to see what options are available. Often, if you earn at or below 80% of your area’s median income, you could qualify for programs that offer forgivable loans or even grants to help you cover your down payment and closing costs.

If you have family members with a generous spirit, ask if they’d be willing to help you with a gift toward your down payment. Not everyone can afford to help, even if their heart is willing, but a gift could be the boost you need to get into a home.

4. Switch Up Your Loan Type

There is a wide variety of loan types that might be a good fit for your situation. Conventional loans are available with down payments as low as 3% of the purchase price, and some lenders offer down payment assistance as a further incentive.

If you choose an FHA loan, you may be eligible even if you fear your credit score is holding you back. The minimum score required to qualify for an FHA loan is 500 if you can put down 10%, and 580 if you put down 3.5%.

Also, check out first-time buyer programs – even if you’ve owned a home in the past. If it’s been more than three years, you could qualify as a first-time buyer again.

You might even explore alternatives such as rent-to-own programs or non-qualifying (non-QM) loans, which offer another way to get your foot in the door. Just make sure you have a trusted advisor to help you review the fine print.

5. Summon Your Inner Landlord

Even if you’re single, you’re not alone. Consider whether you’d be willing to add roommates or tenants to help cover costs. For instance, buying a duplex and renting out the other half. Depending on the loan, you might even be able to use that rental income to qualify for the mortgage.

Sharing a home with trusted friends and roommates is another way you can buy and begin building equity while easing the financial burden.

6. Take Over an Old Mortgage

For divorced singles staying in their home, assumable mortgages could be the ticket to affordability. Todd Huettner, a Denver-based mortgage banker, specializes in helping divorced people navigate their new financial realities.

“Aside from affordability, there's this huge emotional aspect” of wrangling real estate ownership during a divorce, he said. “You know, ‘Over my dead body am I going to let go of that 2% rate.’” But selling isn’t the only option for dealing with the family home.

“Did you know a non-assumable loan can be assumed, and the difference could be $100,000 to $300,000 over the next 10 years?” he said. “That could really go a long ways towards benefiting your kids, or it could be enough to allow you to keep the house that you couldn't otherwise afford for the benefit of your children.”

Assuming a mortgage means taking over the home loan – in this case, from your ex. Many kinds of mortgages are assumable, including FHA loans, Huettner said. But even some non-assumable mortgages can be assumable in divorce. The timing of the divorce, the wording of the decree, and changes to your debt ratio or income could throw a wrench in your plans, so make sure you speak with a knowledgeable mortgage expert – and understand that not everyone knows all of the ins and outs of assumable mortgages.

“The devil is in the details,” Huettner said.

Finding Your Path to Homeownership

Here’s the takeaway: Real estate is a long game, and you don’t need to let your relationship status get in the way of your investment.

Call on a professional or two to help you figure out where you stand and what you need to do to get where you want to be. Whether that means leveling up your buying power, exploring alternative loan or property options, or thinking outside the box, there’s a path to homeownership – even in today’s market.