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Millennials are wasting home down payments on bachelor blow outs

CNBC logo CNBC 8/12/2017 Kevin Breuninger
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It's tough to save up for a home. It's a whole lot tougher after poker, cigars and a few dozen jello shots.

Millennials spend an average of $1,532 on a single bachelor party, according to a new Zillow (ZG) analysis of wedding data from The Knot. Without travel and lodging, that number shrinks to $738.

Bachelorette parties cost less: $1,106 on average per millennial guest, or $472 without travel and lodging.

Attending just nine bachelor parties in a lifetime will set you back $13,788, the site estimates — about one-third of the down payment on a median-value U.S. home. Considering that Americans attend an average three weddings per year, it isn't so far-fetched to start worrying that your spending habits on booze, flights and presents could keep you out of your dream home.

Here's how: The median U.S. home price is $200,400; a 20 percent down payment on a median-value residence is $40,080.

The damage varies by city. In the cheapest markets, such as Cleveland, millennials could sink fully half of a down payment partying. Even in San Jose, California, the country's most expensive housing market, millennials with nine bachelor parties under their belts will have spent 6.8 percent of a down payment on the typical $1,013,700 median home.

Bridesmaids and groomsmen may find themselves even further away from homeownership: Members of the bridal party spend an additional $1,154 on wedding gifts, clothes, and other expenses.

"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," said Jeremy Wacksman, Zillow chief marketing officer, in a press release.

"Attending your friends' bachelor or bachelorette parties can be a trip of a lifetime," he said. "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."

Related video: Half of millennials share two stressful views about money

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