Even while turkey becomes more affordable, inflation-weary families may still find it expensive to host a Thanksgiving gathering this year.
According to a LendingTree survey of more than 2,000 U.S. consumers, nearly 56% of Americans plan to host guests this Thanksgiving. The hosts expect to shell out $431 on average ($265 on food/drinks and $166 on décor), a 19% increase from last year
Inflation continues to haunt households, with more than half of celebrators saying that rising costs are impacting their Thanksgiving. To avoid going over the planned budget, Thanksgiving hosts are either switching to cheaper food options (27%) or relying on coupons (26%). Roughly 16% are cutting back on their regular guest list and only a small percentage (9%) are holding back from hosting Thanksgiving this year.
“For some, it might be that they have to spend more of their time bargain hunting and coupon seeking,” says LendingTree (TREE) chief credit analyst Matt Schulz. “For others, it might mean they can’t afford to do things they love, like hosting a big family Thanksgiving. These are things that people across the country have had no choice but to wrestle with over the years.”
The cost of hosting Thanksgiving varies by state
Another report shows that the cost of hosting varies widely depending on the state. Citing the latest data from Purdue University’s Center for Food Demand Analysis & Sustainability, GoBankingRates revealed that the cost for Thanksgiving dinner for 10 people ranges from $58.20 to more than $80.
Being a host is costliest in Hawaii, Alaska, Maryland, Nebraska and California with the effects of inflation being felt severely in those states. Hawaii and Alaska in particular have to deal with high transportation costs for their groceries due to their locations.
Residents in states like Georgia, Kansas, Missouri, Alabama and South Carolina, the bottom five states on the list, are likely to have a less expensive Thanksgiving due to lower living costs and ample agricultural produce.
The cost of some Thanksgiving menu items is rising
While some classic Thanksgiving menu items, such as turkey, have dipped from last year, a few traditional items could still add to the host’s meal budget.
The cost of 12 dinner rolls, in particular, has seen a steep rise since 2014. Using the data from the American Farm Bureau Federation (AFBF) and after adjusting it to 2024 inflation, the price of 12 dinner rolls shot up to $4.16 in 2024, up about 47% from $2.83 in 2018.
According to Wells Fargo’s Agri-Food Institute, both name brand and store brand dinner rolls are up 3% since 2023, putting the bakery section on the high end of the food inflation range. Bakery product prices have increased by a staggering 28% since the pandemic, after little change for a decade.
Even as inflation continues to cool, many budget-conscious American families will face tough choices as they buy their groceries this Thanksgiving.