New analysis from Zillow and The Knot shows that more engaged couples are registering for home funds to help them buy a house, in addition to more traditional wedding gifts. For many couples, marriage is accompanied by exciting — albeit expensive — life changes, like purchasing their first home. As home prices continue to soar across the country, young couples are getting creative when finding money towards a down payment and making their dreams com true.
Couples including “home funds” as part of their wedding registry has increased 55% since 2018. This according to The Knot — and all-in-one wedding planning site. This means nearly 20% of all couples registered on The Knot are asking their guests to help them with the down payment on their first home.
“While guests prefer to give cash gifts for celebratory treats, like a sunset honeymoon dinner, milestone gifting is a profoundly thoughtful and significant trend we’re seeing among couples planning on The Knot,” said Esther Lee, deputy editor of The Knot. “Amid rising interest rates and historic highs for down payments, this particular wedding contribution helps newlyweds reach another meaningful life milestone: homeownership.”
Recent findings from Zillow reveal a significant trend in the real estate market: an unprecedented 50% of homebuyers are embarking on their first home purchase. This marks the highest proportion ever documented by Zillow. Over the period spanning from 2018 to 2022, first-time buyers consistently mentioned utilizing gift funds to bolster their down payment. In the most recent data gathered in 2023, 43% of these buyers disclosed that their down payment funds were, in part, sourced from gifts provided by friends and family.
The primary challenge confronting prospective first-time homebuyers today is affordability. Saving for a down payment now demands nearly 12 years, a substantial increase from the previous nine years recorded prior to the pandemic. In the same timeframe, the typical monthly mortgage payment has surged by more than twofold. For instance, for a home valued at $350,000, assuming a 20% down payment, a couple would need to amass $70,000 for the down payment, coupled with a monthly mortgage payment of $2,334.
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