Children are less likely to be in the future of young adult couples. According to the Pew Research Center, 30% of those 18 to 34 without children aren’t sure if they want kids, 18% saying that they don’t. 

Though not a new phenomenon, it is a growing one. The US fertility rate has been trending down for decades, reaching a century low point in 2023. According to the CDC’s National Center for health Statistics, 3.6 million babies were born in 2023 (54.4 live births for every 1,000 women aged 15 to 44). A more staggering statistic is the change over the past two decades where the birthrate dropped roughly 20% when Baby Boomers left childbearing years. Since then, birth rates have fallen among Gen X, Millennials, and the leading edge of Zoomers. Fewer children born per household has also contributed to the decline.

There are four basic factors driving the trend towards lower birth rates. The biggest deterrent appears to be economics, with the soaring cost of living delaying many younger people from matriculating into adulthood. According to online media source Business Insider, the cost to raise a small child in 2024 is more than $25,000. Societal issues appear to be the second motivator in abstaining from having children, with the most important one being the fear of climate change. Other concerns relate to just the general perception that society is in free-fall.

Other reasons for childless households are the fact that child rearing has become more complicated, just like everything else. Many young people are just not equipped or motivated to navigate this responsibility, at least not at their age. Self-involved lifestyles are also a contributing cause to the trend as some younger people would rather enrich their lifestyles with more possessions and freedom.

Consumer spending will clearly be impacted by declining birth rates with traditional life stage models failing. Younger childless households, or those with fewer children, will mean more discretionary income among all age groups. It also indicates declining demand for family-oriented product categories and continued warp speed for pet adoption as well as the products and services to take care of them.

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