Attending Bachelor Parties Adds Up - to More Than a Third of a Down Payment on a Home
SEATTLE, Aug. 10, 2017 /PRNewswire/ -- Destination bachelor and bachelorette parties are becoming the new norm for many millennials who prize experience and grew up with The Hangover's depiction of pre-wedding adventure. However, those who attend just nine of these trips in a lifetime will have spent up to $13,788, or 34 percent of a down payment on the median U.S. home, according to a new Zillow report.
Most (69 percent) millennials say owning a home is necessary to live The American Dreami. Yet saving money for a down payment is often their biggest barrier to homeownership. To help first-time buyers, Zillow calculated how much cash is needed for a 20 percent down payment on a home, and how much of it may be going toward bachelor or bachelorette parties instead.
A destination bachelor party costs on average $1,532 ($1,106 for a bachelorette), according to wedding website The Knotii. If the average person attends nine parties in a lifetime, or three a year for three years, they will have spent up to 34 percent of the cash needed for a down payment on the median home.
In some metros like Cleveland and Pittsburgh, millennials can spend up to half (51 and 50 percent, respectively) of their future home's down payment on bachelor parties and well over a third of a down payment on bachelorette parties. However, in hot and expensive markets like San Jose or San Francisco, nine destination bachelor parties equates to only 5 or 6 percent, respectively, of the down payment on the median-priced home.
Bachelor and bachelorette parties are not the only expense associated with attending a wedding. On average, bridesmaids and groomsmen spend an additional $1,154 for things like wedding day attire, a gift for the bride and groom, as well as travel and accommodations for the wedding day. Guests not in the bridal party still pay $888, on average, to attend each weddingiii.
"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."
Buyers can use the Zillow (R) affordability calculator to see how much they can actually afford to spend on a home, based on their income, debts and savings. The Zillow (R) mortgage calculator can also provide custom down payment estimates based on home price and interest rates.
|
Metropolitan Area |
Median Home |
Cash Needed for |
Estimated % of |
Estimated % of |
|
United States |
$200,400 |
$40,080 |
34.4% |
24.8% |
|
Atlanta, GA |
$179,900 |
$35,980 |
38.3% |
27.7% |
|
Austin, TX |
$271,500 |
$54,300 |
25.4% |
18.3% |
|
Baltimore, MD |
$261,000 |
$52,200 |
26.4% |
19.1% |
|
Boston, MA |
$427,700 |
$85,540 |
16.1% |
11.6% |
|
Charlotte, NC |
$174,800 |
$34,960 |
39.4% |
28.5% |
|
Chicago, IL |
$211,200 |
$42,240 |
32.6% |
23.6% |
|
Cincinnati, OH |
$152,600 |
$30,520 |
45.2% |
32.6% |
|
Cleveland, OH |
$134,600 |
$26,920 |
51.2% |
37.0% |
|
Columbus, OH |
$162,500 |
$32,500 |
42.4% |
30.6% |
|
Dallas-Fort Worth, TX |
$211,000 |
$42,200 |
32.7% |
23.6% |
|
Denver, CO |
$370,000 |
$74,000 |
18.6% |
13.5% |
|
Detroit, MI |
$141,000 |
$28,200 |
48.9% |
35.3% |
|
Houston, TX |
$178,400 |
$35,680 |
38.6% |
27.9% |
|
Indianapolis, IN |
$138,100 |
$27,620 |
49.9% |
36.0% |
|
Kansas City, MO |
$159,400 |
$31,880 |
43.2% |
31.2% |
|
Las Vegas, NV |
$225,500 |
$45,100 |
30.6% |
22.1% |
|
Los Angeles-Long Beach-Anaheim, CA |
$609,800 |
$121,960 |
11.3% |
8.2% |
|
Miami-Fort Lauderdale, FL |
$253,100 |
$50,620 |
27.2% |
19.7% |
|
Minneapolis-St Paul, MN |
$247,400 |
$49,480 |
27.9% |
20.1% |
|
New York, NY |
$422,300 |
$84,460 |
16.3% |
11.8% |
|
Orlando, FL |
$207,000 |
$41,400 |
33.3% |
24.0% |
|
Philadelphia, PA |
$218,700 |
$43,740 |
31.5% |
22.8% |
|
Phoenix, AZ |
$236,900 |
$47,380 |
29.1% |
21.0% |
|
Pittsburgh, PA |
$137,400 |
$27,480 |
50.2% |
36.2% |
|
Portland, OR |
$367,400 |
$73,480 |
18.8% |
13.5% |
|
Riverside, CA |
$328,800 |
$65,760 |
21.0% |
15.1% |
|
Sacramento, CA |
$369,200 |
$73,840 |
18.7% |
13.5% |
|
San Antonio, TX |
$162,700 |
$32,540 |
42.4% |
30.6% |
|
San Diego, CA |
$548,000 |
$109,600 |
12.6% |
9.1% |
|
San Francisco, CA |
$854,300 |
$170,860 |
8.1% |
5.8% |
|
San Jose, CA |
$1,013,700 |
$202,740 |
6.8% |
4.9% |
|
Seattle, WA |
$447,100 |
$89,420 |
15.4% |
11.1% |
|
St. Louis, MO |
$148,600 |
$29,720 |
46.4% |
33.5% |
|
Tampa, FL |
$185,700 |
$37,140 |
37.1% |
26.8% |
|
Washington, DC |
$382,600 |
$76,520 |
18.0% |
13.0% |
Zillow
Zillow is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. Zillow serves the full lifecycle of owning and living in a home: buying, selling, renting, financing, remodeling and more. In addition to Zillow.com (R), Zillow operates the most popular suite of mobile real estate apps, with more than two dozen apps across all major platforms. Launched in 2006, Zillow is owned and operated by Zillow Group, Inc. (NASDAQ:Z and ZG) and headquartered in Seattle.
Zillow and Zillow.com are registered trademarks of Zillow, Inc.
i According to the first Zillow Housing Aspirations Report (ZHAR), a semi-annual survey of 10,000 Americans seeking insight into their views on homeownership and their housing plans.
ii Data from The Knot 2016 Wedding Guest Study.
iii Data from The Knot 2016 Wedding Guest Study.
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SOURCEZillow, Inc.
