Exploding Housing Costs Linked To Steep Drop In US Birth Rates: Report

Research demonstrates a clear correlation between soaring housing prices and decreasing birth rates in the United States.

In 2024, the US birth rate has reached its lowest recorded level, continuing a downward trajectory observed throughout the last twenty years. Recent statistics from the US Centres for Disease Control and Prevention (CDC) reveal the national fertility rate has fallen below 1.6 children per woman, significantly lower than the 2.1 rate required for population stability.

According to The New York Post, specialists attribute this decline to various factors including individual preferences and societal changes, but rapidly increasing housing expenses stand out as a primary contributor.

Economic analysts examining housing market statistics discovered substantial growth in home acquisition costs. The median single-family home price in 2006 was $221,923, equivalent to approximately $343,806 in 2024 when adjusted for inflation. In contrast, 2024's median sales price reached $410,100, exceeding the inflation-adjusted 2006 figure by more than $66,000 in real terms.

During this same 18-year timeframe, America's total fertility rate decreased from roughly 2.1 births per woman to just under 1.6 births, as reported by The New York Post.

This escalating financial burden is considered a significant deterrent for many considering starting or growing families, with increasing numbers postponing parenthood or deciding against having children altogether. The combined effect of escalating living expenses and economic instability is transforming demographic patterns nationwide.

"Family-sized homes that can adequately house multiple children have become increasingly unaffordable for many households," explains Hannah Jones, senior economic research analyst at Realtor.com. "As prices have substantially outgrown wage increases, couples may postpone homeownership or remain in smaller residences longer, restricting the available space for expanding families."

Research published by the nonprofit National Bureau of Economic Research in 2012 determined that housing prices significantly influence family planning decisions.