More Gen Z Delay Having Kids Than Millennials Amid Birth Rate Decline Fears

Newsweek

06-06-2025

Based on facts, either observed and verified firsthand by the reporter, or reported and verified from knowledgeable sources.
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
Gen Z Americans are more likely to delay having kids due to economic conditions than millennials, according to a new report from AI platform Pearl.com.
It's what analysts say could be a concerning trend as the birth rate continues to decline, creating larger implications for the economy, workforce and global politics.
Why It Matters
The CDC recorded a "historic low" for the U.S. general fertility rate in 2023, aligning with global trends seen in several developed countries. The Congressional Budget Office projected that U.S. fertility will remain below replacement for decades to come.
A newborn baby girl is reunited with her mother straight after birth in a hospital environment.
A newborn baby girl is reunited with her mother straight after birth in a hospital environment.
Tim Clayton/Corbis via Getty Images
What To Know
In a new report from Pearl.com, Gen Z, which consists of those born between 1997 and 2012, was slightly more likely to delay having children than their elder millennial counterparts.
Roughly 39 percent of Gen Z said they had delayed having a child because of the current economic climate, while only 36 percent of millennials said the same.
Katie Trowbridge, a multi-generational workplace strategist and CEO of Curiosity 2 Create, said the younger generations' decision to forgo parenthood has many reasons beyond just the economics of it, though.
"This isn't about apathy. It's about discernment. I see a generation leaning into curiosity, creative and critical thinking, and seeking connection and meaning," Trowbridge told Newsweek. "They're not just putting off parenthood, they're rethinking, redefining, and reimaging what it means entirely."
Thoai Ngo, a professor of population and family health at the Columbia School of Public Health, said Gen Z is prioritizing self-growth and career development before starting a family. They've also grown up in a world shaped by climate crisis and economic instability, he said.
"Rising costs—student debt, housing, childcare—make financial stability an uphill battle," Ngo told Newsweek. "Climate anxiety and shifting social norms mean that Gen Z doesn't view marriage and children as inevitable milestones."
Economic concerns are delaying other major life decisions as well, with 36 percent of Gen Z-ers in the survey saying they've given up on the idea of ever owning a home.
Worries over their financial situations have driven 33 percent of Gen Z-ers and 40 percent of millennials to turn to artificial intelligence for personal budgeting, Pearl found, but the larger issue of it being too expensive to have a baby could have significant effects for the already declining birth rate.
Declining Birth Rates and Demographic Shifts
Research shows that those choosing not to have children—the "child-free"—are an increasingly visible identity group. Demographic breakdowns reveal higher proportions of white, urban, and employed individuals, with younger respondents more often uncertain or undecided about potential parenthood.
Concerns over population decline have prompted legislative efforts, such as Ohio's proposed "Natural Family Month" bill to promote marriage and child-rearing.
Policymakers and public figures, including President Donald Trump and Vice President JD Vance, have advocated for policies aimed at increasing the birth rate. Meanwhile, discussions about climate change, reproductive rights, and economic factors remain central to the choices facing younger adults.
"Ultimately, Gen Z is rethinking commitment and stability in a deeply uncertain future. If we don't address the structural barriers—economic insecurity, lack of family supports, climate threats—we'll see continued delays and declines in family formation, with broad impacts on our social and economic systems in the decades to come," Ngo said.
Child-free Americans cite various reasons for forgoing parenthood.
A significant subset of young adults, 23 percent, said having children was irresponsible due to climate change, according to a recent Newsweek/Independent Center poll.
The same Newsweek report found one in three Gen Zers and millennials do not have and do not want to have children.
What People Are Saying
Moira Corcoran, a CPA and finance expert on Pearl, said in the report: "This data tells us that Americans, particularly younger generations, are feeling a sense of hopelessness when it comes to their financial outlook. With so many saying saving feels futile at this point, many are looking to make drastic changes to their lives in a way that's reminiscent of the 2008 recession."
"Between postponing major life decisions like having a child or owning a home to cutting back on summer travel, it is clear consumers are approaching a state of panic – they need ways to access affordable, professional financial advice to navigate these ever-changing economic conditions."
Katie Trowbridge, a multi-generational workplace strategist and CEO of Curiosity 2 Create, told Newsweek: "Gen Z isn't just delaying parenthood because of the economy. They're questioning the world they're inheriting. From climate anxiety and student debt to unstable jobs and rising costs, they're asking big questions like: Can I afford to raise a child in a world that doesn't feel built for thriving?"
Kevin Thompson, the CEO of 9i Capital Group and the host of the 9innings podcast, told Newsweek: "It shows that in today's economy, it often takes both parents working full-time just to stay afloat. With prices rising and housing becoming less affordable, there's less room — and frankly, less patience — for adding more financial weight. We also saw birthrates start to decline decades ago as more women entered the workforce and opportunities expanded — and that trend is only continuing."
Alex Beene, a financial literacy instructor for the University of Tennessee at Martin, told Newsweek: "Not only do inflationary pressures continue to way on the cost of living, but this generation that is newer to the workplace will more than likely be hit harder by many of the layoffs announced over the last six months."
"And while the decision to not have children right away because of economic factors may not be fun, it is the right call. Having children is more expensive than ever, and having the maturity to understand it would be impossible to assume the role of parent under one's current income is pivotal for long-term financial growth."
What Happens Next
There are serious implications if the birth rate continues to decline as recent years would suggest, but these concerns tend to revolve around the workforce and national productivity.
"The real concern lies in who's worried — and that's often those viewing the issue purely from an economic lens: fewer workers, fewer contributors to GDP, and slower growth," Thompson said.
"Long-term, that could mean more economic stagnation. As populations age, we'll spend more on healthcare and social support and less on innovation and expansion. That's the deeper issue — not population size, but how the age imbalance affects productivity and prosperity."