The size of the millennial generation and a recovering economy may not be enough to save the wedding market. According to Forbes, the millennial generation’s choice to marry later in life may not be the true cause of the wedding market’s failure to recover from the recession. Rather, the reason may be because of millennials’ inability to afford weddings at all.
A recent study conducted by online diamond jewelry retailer James Allen suggests that wedding ceremonies and celebrations are considered unaffordable luxuries by many millennials. In 2016, the average cost of a wedding was estimated to be $35,000 compared to the average student loan debt of $17,126.
Increases in prices have also made the average wedding far more expensive than in previous years. For instance, in the past 10 years the average price of an engagement ring increased from $5,100 to $7,900. The cost of the proposal has also gone up from $271 to $452.
And that’s just the engagement. Couples also have to worry about paying for the venue, the wedding dress, and the wedding party. Flowers alone make up a total of 7% to 8% of an average wedding budget.
Because weddings have become so expensive, many millennials have been increasing the amount of entertainment at their weddings in order to make them more customary. However, the rate of marriage itself is still on the decline.
According to the CDC/NCHS National Vital Statistics, there were as many as 8.2 marriages per 1,000 people in 2000. Yet in 2016, there were only 6.9 per 1,000 people.
Many in the wedding market have said the cause for the decline was due to millennials delaying marriage until later in life. The average age of an engaged man is 29.5 while the average age of an engaged woman is 27.4 years.
However, if the true cause for the decline in weddings is because of economic reasons then does this mean the wedding market could benefit from a growing economy? According to Forbes, the answer is no.
A recent study conducted by the Pew Research Center shows that Americans between the ages of 18 to 29 largely believe that marriage isn’t a strong priority. In fact, many young couples are choosing to live and raise children together rather than marrying.
By choosing to live together rather than formally combining incomes, these couples are receiving the socioeconomic benefits of marriage without paying for the luxury celebration. Additionally, many young Americans see living together as a financially safer alternative to marriage.
According to the CDC, there are as many as 3.2 divorces per 1,000 people. That’s as many as 876,000 divorces a year, which means, at 900,000, there are nearly as many annual divorces as there are elevators in the United States.
While a study conducted by TD Ameritrade finds that married U.S. couples are more financially secure than those who are single. However, single Americans may become more financially secure as well simply by choosing to live with a roommate.
In any case, an improved economy may not be likely to improve the wedding market. As long as younger generations continue to see marriage as not just a luxury but also a low priority, the wedding market may need to prepare to hold on to the ledge.