Are Bachelorette and Bachelor Parties Keeping Millennials From Buying Homes?
A new report says that attending these events can cost you.
Move over avocado toast, there’s another thing millennials love that may be stopping them from buying a house. While one millionaire recently said that millennials should stop buying avocado toast if they want to buy a house, a brand new report from real estate site Zillow finds that attending bachelor or bachelorette parties might prevent them from becoming future homeowners, too.
It’s no secret that pre-wedding parties have become a big to-do, with many brides- or grooms-to-be opting for a destination party with their closest friends. The experts at Zillow say that this can really put a dent in any type of home savings fund. If you attend nine of these parties, you can end up spending up to $13,788, which is about 35 percent of a down payment on a median-price home. This was calculated with help from wedding website The Knot, which estimates that a bachelor party costs attendees $1,532 on average, while a bachelorette costs $1,106.
“Buying a home is one of the most expensive purchases someone will ever make, and for most first-time buyers that means years of saving money to afford a down payment," says Jeremy Wacksman, Zillow chief marketing officer. "Attending your friends' bachelor or bachelorette parties can be a trip of a lifetime. While everyone's budget and priorities are different, big ticket expenses like vacations can add up surprisingly quickly—a lot faster than a $19 avocado toast."
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Of course, it all depends on where you plan on buying a house, as home values differ throughout the country. Those who are looking to buy in Cleveland or Pittsburgh can spend about half of their down payment on nine bachelor or bachelorette parties. But in some cities with expensive and competitive housing markets, like San Jose or San Francisco, partygoers would spend about five or six percent of the down payment on a home in those cities.
And it doesn’t stop there for friends of the bride or groom. Zillow reports that bridesmaids and groomsmen can spend an additional $1,154 on wedding day needs like clothing, gifts, and travel and accommodations. Wedding guests in general spend about $888 on average to attend.