Pets vs Kids: Why Many Americans Are Choosing Fur Babies Over Babies in 2025

Rising costs have reshaped how younger Americans think about long-term commitments, with housing affordability deteriorating and inflation remaining elevated for much of the past several years. For many couples, the economic conditions that once supported milestones like homeownership, marriage and children now feel increasingly out of reach. 
US birth rates have been declining steadily for years, a pattern some economists warn could weigh on long-term growth. Pet ownership, on the other hand, has stayed robust. A recent survey shows that as of 2025, 94 million US households own a pet, with Millennials and Gen Z more likely than older cohorts to own multiple animals. The survey also projected $157 billion in pet-related expenses for this year. 

Pets still require ongoing care, but their costs are often more predictable and manageable than raising children. The cost of bringing home a dog in 2025 is 8% lower than last year, largely because adoption fees have fallen. Ongoing pet ownership costs vary by state, but they remain much lower than the baseline expenses of child-care. Estimates from TotalVet show that Connecticut has the highest annual cost of dog ownership at $8,854, while Alabama, the least expensive state to raise a child, still averages at $16,072 per year.  
In some states, the difference is even more pronounced. Consumer Affairs data shows that in Massachusetts, raising a child costs 27,473 dollars annually, compared with 2,759 dollars for a dog. In practical terms, the yearly cost of one child outweighs the cost of owning ten dogs.

A report by HarrisPoll reveals that lower costs still does not mean casual spending. Among younger pet parents, 60% prioritize spending on pets over themselves, and 70% maintain a dedicated pet budget. That devotion carries financial consequences. About 34% of Millennials and 29% of Gen Z respondents say they have taken on debt due to pet-related expenses.
Beyond affordability, the appeal towards pet-adoption can be emotional as well as economic. A study published in European Psychologist found that attachment plays a central role in why pets have become substitutes for traditional family structures. The findings suggest that the bond between humans and dogs often mirrors parent-child attachment, offering emotional fulfilment without the same financial pressure. 

Another survey reinforces how deeply these relationships are often felt. HarrisPoll found that out of 2,000 Americans, 43% now prefer pets over children, with many Gen Z and Millennial respondents citing affordability and ease of care. A 2023 Pew Research Center report also showed that 97% of US pet owners consider their animals part of the family, while 51% say pets are as integral as a human family member. 
And workplace expectations are also reflecting these priorities, as 58% of pet owners believe employers should normalize pets at work, 49% would welcome pet stipends, and 46% support some form of pawternity leave, signaling that pet ownership is increasingly influencing benefit design.  The rise of pet parenthood is not simply about companionship, but about adaptation. As economic pressures reshape traditional life paths, pets may have emerged as a form of stability that fits both the emotional and financial realities of younger generations.