For over a third of millennials, first comes home then comes marriage, according to a recent study.
A Redfin survey found that 38% of American millennials, or those between the ages of 18-34, said they either have or would put off a wedding in favor of buying a home.
While home price growth has moderated some in recent months, according to CoreLogic deputy chief economist Sam Khater, buying a new abode continues to get more expensive. Meanwhile, weddings have hit record highs in recent years in terms of cost. In 2014, the average cost of a wedding nationwide came to $29,858, according to TheKnot.com Real Weddings Survey.
For some couples, those two trends combined makes buying a home before walking the aisle seem like a sensible choice, but owning a home as an unmarried couple can be risky, especially since the relationship might not last. According to the Centers for Disease Control, 27.4% of unmarried, cohabitating couples end their relationship within three years.
Unlike a typical break-up situation for an unmarried couple, ending a co-ownership situation with a house can become a tricky endeavor, according to Seattle-based brokerage firm Redfin’s chief economist Nela Richardson.
“Breaking up is hard to do, but splitting financial assets makes it even harder, especially considering the fees and closing costs that are associated with buying and selling a home, which, if done too soon, can wipe out all the equity accumulated,” Richardson said in a Feb. 13 blog posttied to the online survey that polled 2,021 adults.