Bachelor Party or Down Payment? A Millennial Dilemma
Any millennial will tell you that it's tough saving for a home (especially in Seattle, but that's a whole other blog post). Nowadays, with an average spend of $1,532 on a single bachelor party, saving is becoming a whole lot harder. A recent CNBC article crunched the numbers and when I realized how much money the millennial generation was spending on wedding festivities, I was floored.
According to research done by Zillow and The Knot, each millennial bachelor party-goer is spending $1,532, per party. This number includes travel and lodging, so without it, the number "shrinks to $738". Bachelorette parties reportedly cost less, "$1,106 on average per millennial guest, or $472 without travel and lodging." However, both the bachelor and bachelorette numbers start adding up really quick when you consider the average American attends three weddings per year; and "attending just nine bachelor parties in a lifetime will set you back $13,788... about one-third of the down payment on a median-value U.S. home."
With the median home prices in Seattle growing much faster than many other U.S. cities, and reportedly sitting around $730,000 in June, even our local Seattle bachelor and bachelorette party-goers will have spent 9.45 percent of a potential down payment for a home. These numbers are, of course, going on the assumption of putting down the old standard of a 20 percent down payment. However, in contrast to what many millennials' parents may have experienced, the 20% down payment isn't always standard any more. Many new homebuyers are putting down less and less and "the average down payment [in 2016] was 6 percent." There are things to consider when you're putting less money down upfront and there are many articles and reports that can help new homebuyers make the decision that works best for them. Better yet, consult with a financial adviser or mortgage lender to ensure you're receiving the most up to date and reliable information. Feel free to contact me and I can help you get started on your homebuying journey!