Why Dating Has Become A Financial Luxury

The rising cost of living is significantly impacting dating habits in the U.S., with half of all Americans reporting fewer dates due to economic concerns. Nearly half of single Americans believe dating is not financially worthwhile, as the average date cost $189 in February 2026, a 12.5% increase from 2025. This financial burden particularly affects younger generations, with 50% of Gen Z and 40% of millennials stating that dating costs hinder their financial goals. This leads to a decreased dating frequency, fewer dinners out, and a lower tolerance for higher-risk meetups, as individuals question spending money on someone they might not connect with. The economic strain has also impacted dating app companies. Match Group and Bumble, the top two dating app stocks, have seen declines since the pandemic's end. This suggests that the increasing cost of life broadly affects people's ability to find romantic partners. Structural changes are influencing how individuals perceive their "marriage-ability" or "date-ability," making them disinclined to enter the dating market. For young men, economic and dating prospects are particularly linked and are currently quite challenging. Finding love now involves more financial risk. Gen Z, for example, went on an average of nine dates in 2025, spending approximately $205 per date, which includes transportation, clothing, grooming, and the date itself. This totals about $1,845 annually. Given that median annual earnings for full-time Gen Z workers range from under $40,000 (ages 16-24) to around $59,000 (ages 25-34), dating accounts for 3% to nearly 5% of their annual income. When the cost of living increases, people become more defensive in their dating, taking fewer chances and forming fewer connections. This financial pressure also affects mental well-being, reducing attention and mood for romantic pursuits. The risk of a date not "clicking" and the subsequent loss of money, such as a $40 dinner bill, is a significant deterrent. Many daters try to mitigate this by opting for less expensive first dates, like drinks or coffee, to avoid breaking the bank. Beyond the dates themselves, dating apps present another financial hurdle. 35% of dating app users have paid for platform features. These apps often operate on a "freemium" model, offering free basic access but requiring subscriptions for desirable features. This strategy, including "gamification" that limits visibility unless users pay, can psychologically push users toward paid plans. Top apps offer different tiers of paid plans, unlocking features like advanced filtering or seeing who has liked your profile. However, dating app pricing has faced criticism for being opaque. A 2024 class-action lawsuit accused Match Group of deceptive practices related to subscriptions, in-app purchases, hidden algorithms, and "artificial bottlenecks" designed to push users toward paid features. Match Group denied wrongdoing, stating that the vast majority of users on their freemium apps use them for free, and subscriptions are optional tools for those seeking more control or efficiency, not a requirement for success. Bumble also confirmed its freemium model, emphasizing its focus on providing a safe and high-quality free experience while offering paid features for a more tailored experience. Experts note that different price levels can be an example of price discrimination, where different versions of a product are offered at varying prices or with different features. This differs from dynamic pricing, which involves changing prices over time. Consumer advocates, however, argue that some dating apps use opaque pricing practices that are difficult for users to understand, such as swipe limits and premium features promising greater visibility or better odds. This "pay-to-play" system suggests that those with more money might have greater success on dating apps. Despite asking users to spend more, Wall Street has questioned the dating app business model. JPMorgan initially labeled Bumble as a top short idea for 2026 due to user engagement pressure and potential revenue drops but later upgraded it to neutral, citing stabilization and potential improvements from relaunches, AI features, and other product changes. In response to challenges, dating apps are pivoting to in-person events. Bumble launched "Bumble IRL" in 2022, Hinge announced "One More Hour" in 2023, and Tinder introduced an "events" feature in March 2026 to help singles meet offline. These events aim to address the business problem of "breaking ice" and helping people transition from app conversations to real-life meetings. By monetizing offline interactions through events, either by charging for attendance or through sales, apps can extend the period they generate revenue from users. These in-person events, though not organic and often costing money, meet a growing demand, especially among Gen Z and millennials, to meet people more organically through mutual friends, activities, classes, or bars. Beyond dating apps, "third spaces" and membership clubs are also booming, suggesting that those who can afford to pay for intentional spaces might have better chances of finding connections. Ultimately, individuals vary in their preference for meeting people online or in person, with many remaining open to both avenues.