Many newlyweds are choosing to forgo traditional cash gifts and instead are adding the option of helping to pay for a home purchase to their wedding registries. Wedding resource websites like The Knot and Zillow Home Loans have found that there has been a 55% increase in couples adding a “home fund” option to their registries compared to 2018. This allows couples to start their new chapter as husband and wife in a house they can call their own.
A recent Zola survey revealed that nearly 87% of couples plan on adding a cash fund option to their registry, with over 37% planning to use the money towards purchasing a new home. The Vice President of brand marketing and strategy at Zola, Allison Cullman, believes that contributing to a couple’s new home is a profound way to invest in and celebrate their future together as a couple. This trend of asking for money towards a home is becoming less taboo, according to Cullman.
While the cash gifts may not cover the full down payment, they can still be extremely helpful in getting the couple further along in the home buying process. With interest rates dropping, many couples are eager to purchase a home but face challenges from homeowners who resist lowering rates, creating a rate-lock effect. This makes the surplus funds from wedding gifts even more valuable in helping couples achieve their goal of homeownership.
Amanda Pendleton, a personal finance expert for Zillow Home Loans, stated that between 2018 and 2022, first-time buyers were at least twice as likely to report using gift funds towards their down payment. In 2023, 43% reported that gift funds from friends and family were a source of at least part of their housing goal. People are more inclined to give a gift towards a specific purpose, like a home purchase, where they can see the outcome, rather than feeling like their gift is going into an abyss.
Overall, the trend of adding a cash fund option to wedding registries to help with a home purchase is on the rise. More couples are seeing the value in asking for financial help towards such a significant investment as buying a home. With interest rates dropping and homeowners hesitant to lower rates, these cash gifts can make a significant impact in helping couples achieve their goal of owning a home. It allows friends and family to contribute in a meaningful way to the couple’s future together as they start their married life in a home of their own.
