Researchers at Zillow haven’t actually declared bachelor and bachelorette parties a menace to the home industry. But they did identify the opportunity cost of all those pre-wedding adventures that can certainly put a dent in a down payment.
Making reference to the popular “Hangover” movie series, the digital real estate platform pointed out that destination bachelor and bachelorette parties are becoming the new norm for many millennials. Further, celebrants 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.
"Big ticket expenses like vacations can add up surprisingly quickly – a lot faster than a $19 avocado toast.”A destination bachelor party costs on average $1,532 ($1,106 for a bachelorette), according to wedding website The Knot. 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%, 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 wedding.
"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."