More pets than kids: The increased role of animals in real estate

As American demographics shift, so do the priorities of homebuyers, and pets are playing an increased role in real estate decisions.

“Did you know there are more households with pets than children?” Jessica Lautz, deputy chief economist and vice president of research at the National Association of Realtors (NAR), wrote in a recent blog post. “And these beloved pets are a driver of economic activity, namely, homebuying.”

Recent data cited by Lautz supports that claim.

According to the American Pet Products Association (APPA), 71% of U.S. households now own a pet, a significant increase from 56% in 1988.

Meanwhile, U.S. Census Bureau data reveals a sharp decline in households with children. In 1950, 52% of families had children under 18. That number dropped to 39% in 2024.

The trend is reflected even more starkly in homebuying statistics. In 1985, 58% of homebuyers had children under 18 in the home. In 2024, that figure plummeted to 27% — the lowest on record, Lautz said.

“Birth rates, overall, have been declining, and a large share of baby boomer households have already seen their children leave the nest,” she added.

At the same time, Americans are not only adopting more pets, they’re devoting more time and money to them.

The U.S. Bureau of Labor Statistics’ American Time Use Survey found that the percentage of Americans who spend time with pets each day rose from 13.2% in 2003 to 20.4% in 2023. For women, that number climbs to 23.8%. The average time spent with pets also increased — from 0.62 hours in 2003 to 0.73 hours in 2023.

Financial investment has kept pace. Pet industry spending in the U.S. surged from $53.3 billion in 2012 to $152 billion in 2024, according to the APPA. Dogs and cats remain the most common household pets.

These shifts are changing how people choose their homes. Among recent homebuyers, about one in five considered their pet when selecting a neighborhood. Lautz said that number rises to 24% among unmarried couples, compared to 17% of single women, 15% of married couples and 12% of single men.

Buyers who prioritized their pets in their choice of neighborhood were also more likely to seek features such as proximity to veterinarians, parks, outdoor space and walkability. Many opted for homes with larger lots or acreage.

“It’s not just humans who desire these neighborhood features, but the pets themselves that need room to run and play,” Lautz said.