Editor: Draco Copper | Tactical Investor
Millennials Not Getting Married
Maybe because the cost of owning a home and a wedding is now outrageously out of the reach for most of them?
If owning a home is high on your bucket list, you might want to think twice before jetting off to too many destination bachelors or bachelorette parties.
We know, you’ve already been told that giving up avocado toast and coffee will set you on the path toward saving for your dream home. But a study from real estate website Zillow shines a light on the money going toward lavish pre-wedding bashes instead of the savings account.
Millennials Not Getting Married: Are weddings just too expensive?
“According to our most recent study of wedding guests and wedding party members — The Knot 2018 Wedding Guest Study — members of the wedding party spend, on average, $584 attending each bachelor or bachelorette party. This price includes their costs to travel, accommodations and gifts,” Kristen Maxwell Cooper, The Knot editor in chief, told TODAY Home. “Additionally, our study found that members of the wedding party aren’t the only ones attending bachelor and bachelorette parties — in fact, one in four guests who aren’t part of the wedding party are also attending these pre-wedding parties.”
Today’s couples are all about experiences, so it’s no surprise many brides and grooms-to-be (or their maids of honor and best men) are planning unforgettable trips for their pre-wedding getaways,” Maxwell Cooper said. “As with their weddings, couples want their individual pre-wedding celebrations to be as unique as they are and a reflection of their interests and personalities, which can sometimes result in pricey bachelor and bachelorette parties.”
Millennials Not Getting Married: Here are some possible reasons
There is a whole host of reasons, including personal preferences and economic disadvantages, that explain why the homeownership rate for the largest generation in U.S. history is lower than that of their parents and grandparents.
“In my generation, I’m a baby boomer, you bought a home as quickly as you could,” said Laurie Goodman of the Urban Institute. “You didn’t take a vacation for years to save for the down payment on your first home.”
Millennials, on the other hand, she said, are in no rush to get their hands on house keys.
Delayed marriage has one of the biggest impacts on their low homeownership rate. Marriage increases one’s likelihood of owning a home by 18 percentage points, the researchers found. The share of married households with children, aged 18 to 34, dropped to 25 per cent in 2015, from 37 per cent in 1990. And having a child increases a person’s chance of owning a house by 6 percentage points, the researchers calculated.
Millennials are also a far more diverse generation than previous ones, and homeownership rates are lower among Hispanic, black and Asian-Americans compared with white Americans. While almost 39 per cent of white millennials, aged 18 to 34, own a house, just 14.5 per cent of those black Americans do, according to the Urban Institute.
Millennials are also renting for longer in locations that tend to be pricey, making it harder for them to save up for eventual down payment. Nearly half of households headed by people 18 to 34 are rent-burdened, meaning that more than 30 per cent of their paycheck goes to their landlord. Full Story
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