Economic Realities Behind Declining Birth Rates in Millennials and Gen Z
Adults in their prime childbearing years are having fewer children than the generations before them, reaching a significant low in 2023 when the U.S. fertility rate hit its lowest level ever. While individual reasons for not having children vary, the soaring cost of living significantly influences younger generations’ decisions, according to a recent report by Fortune.
A new report by the Pew Research Center reveals that people under 50 without children are three times more likely than older childless adults—36% compared to 12%—to cite financial constraints as the main reason for not having kids. Since 2018, the share of young adults in the U.S. who say they are unlikely to ever have children has risen from 37% to 47% in 2023.
Despite the financial pressures, the primary reason for those under 50 choosing not to have children is simply a lack of desire. Pew surveyed 2,542 adults aged 50 and older without children and 770 adults aged 18 to 49 who do not plan to have kids.
Millennial Financial Insecurity
The economic struggles of millennials offer clear reasons for their declining birth rates. The oldest millennials came of age during the Great Recession and have generally delayed marriage and homeownership. Many perceive their finances as precarious.
“We have a pretty strong set of prerequisites: You absolutely should finish school, have a decent job, make a decent income, be in a good partnership, and live on your own,” Karen Benjamin Guzzo, director of the Carolina Population Center at the University of North Carolina, told the Washington Post. “That takes a while to accomplish, especially in this day and age. Some people may feel like they’re never going to be in a good place.”
Even high earners not yet rich (HENRYs) feel the financial pinch. Student loans are a major obstacle, as one 29-year-old earning $125,000 explained to Fortune, “When I think of starting a family, I hesitate to do that with student loans still on the table. Starting to save for your kids’ student loans while still paying your own off, that’s something I don’t want to do.”
Political and Environmental Considerations
The rise in childless adults, particularly women, has become a contentious topic in recent political discourse. A resurfaced clip of Republican vice presidential nominee J.D. Vance criticizing Democratic front-runner Kamala Harris for not having biological children highlights this tension. Vance told Fox News in 2021, “Democrats including Harris are a bunch of childless cat ladies who are miserable at their own lives and the choices that they’ve made, and so they want to make the rest of the country miserable, too.”
Young people also cite environmental concerns as a significant reason for not having children. Pew’s report found that 26% of those under 50 listed climate change as a factor, compared to just 6% of those over 50. For the older group, the most common reason for not having children was simply that “it just didn’t happen.”
The combination of economic pressures, shifting personal priorities, and environmental concerns is reshaping family planning decisions for Millennials and Gen Z. As these generations navigate financial instability and broader societal challenges, their choices about parenthood reflect a complex interplay of personal and economic factors.
