Danielle Hale Chief Economist | realtors.com
The National Association of Realtors® has reported a decline in the number of homebuyers with children under 18. Only 27% of recent buyers had a child living with them, marking an all-time low. This is a decrease from 30% last year and significantly lower than the 58% recorded in 1985.
Brandi Snowden, director of member and consumer survey research at NAR, commented on this trend: “With rising home prices, people might be waiting longer to buy a home, and might be waiting longer to have children, too.”
Hannah Jones, Realtor.com® senior economic research analyst, noted that the income required to purchase a median-priced home in the U.S. exceeds what a typical household earns. She explained that "child care costs and other child-related expenses take away from the amount a household can spend on a monthly mortgage payment," potentially deterring families with children from buying homes.
Jones further elaborated that some buyers may be past their child-rearing years or are choosing to secure homes before having children. She said, “Put differently, households may first secure a home, then have kids,” which could result in more childless buyers at the time of purchase.
Jameson Tyler Drew, president of Anubis Properties in Los Angeles, shared his experiences: “I’ve lost dozens of deals over the last few years because clients were slowly priced out of the market.” He added that many realize they cannot afford both housing and childcare after having children.
TikToker Howdy_Shannyn expressed similar concerns about balancing housing costs with childcare expenses. In her video, she stated spending $506 per week for daycare for two kids and mentioned that owning a house remains unfeasible until daycare costs decrease.
Real estate agents across various regions have observed these trends. Andrew Fortune from Great Colorado Homes noted fewer clients with children due to rising interest rates since 2022. Samantha Sousa from Sousa Valley Real Estate highlighted how many parents rent because they can't save enough for closing costs despite paying higher rents than mortgages.
Sam Fitz-Simon from Compass suggested that some families remain in starter homes longer to keep payments manageable. Nikki Beauchamp from Sotheby’s International Realty advised clients to plan ahead regarding family expansion when purchasing homes.
Cara Ameer from Coldwell Banker pointed out that families often move out of state seeking more affordable housing options.
In terms of affordability by state, SmartAsset calculated necessary incomes for families based on housing costs using the 50/30/20 budget rule. Massachusetts topped the list as most expensive while Mississippi was identified as least expensive for raising children comfortably.
Drew emphasized that young people are vital to cities but face challenges affording life there when factoring in children's expenses.
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