Home funds becoming popular wedding gifts as home buying becomes more expensive
MINNEAPOLIS — Home buying has become so expensive, couples are now asking for help on their wedding registries.
Couples like Sinloria Macrae and Marzouk Alassani, who got married this September.
"I think there is something magical that happens after you say 'I do,'" Alassani said.
Like any couple, Alassani and Macrae registered for the essentials; but they also opted for a cash fund directed toward their first home.
"I think people are kind of straying away from traditional registry sometimes," Marae said.
She's right. Since 2018, asking for "home funds" on The Knot has spiked 55%. About 20% of couples on the wedding planning and registry website are now asking for home fund donations, a joint report from Zillow and The Knot found.
"The fact is that interest rates are at a high, whereas what we had seen in 2020 was much different," The Knot Deputy Editor Esther Lee said.
Lee tells WCCO that home funds have become one of the more popular cash fund registry items, second to the honeymoon fund.
READ MORE: Weddings can be expensive, but there are tips and tricks to save
Earlier this year, real estate provider ATTOM showed that the typical American can't afford to buy a home in a growing number of communities across the nation. The report had researchers examine median home prices last year for roughly 575 U.S. counties.
They found that home prices in 99% of those places are beyond reach of the average income, which is $71,214.
Beyond the fact that homes are just plain expensive right now, Lee says some couples opt for cash funding because it makes their guest feel like they're a part of something special.
"The funds will go towards this monumental purchase cost, which then you know, how allows their loved ones become part of another big milestone in their lives," Lee said.
Alassani and Macrae hope to buy a home in the next year, if the market cooperates. The donations they received from guests went straight to a savings account.
They say the home fund helps make their dream feel like a plan.
"The cash fund just kind of helps, you know, kind of put that vision into reality," Alassani said.
