Why Gen Z Is Having Fewer Kids — And What the Data Says About the Future of Birth Rates

Across the United States and much of the world, birth rates are falling—and Generation Z is at the center of that shift.

For decades, starting a family in your twenties was considered the norm. Today, many young adults are delaying parenthood or choosing not to have children at all. The change is dramatic enough that economists, demographers, and policymakers are beginning to ask a serious question:

Is this a temporary generational trend, or the beginning of a long-term population shift?

As a 24-year-old woman myself, I can say this shift is not just theoretical. Many people my age—including me—simply aren’t thinking about having children right now. For some, it’s economics. For others, it’s lifestyle priorities. And for many, it’s a growing sense that the world feels uncertain in ways previous generations didn’t face quite as intensely.

The Birth Rate Is at a Historic Low

The United States fertility rate has been declining for nearly two decades.

According to data from the CDC, the U.S. fertility rate dropped to about 1.6 children per woman in 2024, far below the replacement level of 2.1 children per woman needed to maintain a stable population.

This means each generation is, on average, having fewer children than the generation before it.

The number of births has also remained relatively low in recent years. In 2025, the United States recorded just over 3.6 million births, slightly fewer than the previous year.

Surveys also show that younger adults are planning smaller families. In 2012, Americans ages 20–39 planned to have about 2.3 children on average, but by 2023 that number had dropped to around 1.8 children, according to research from Pew.

Economics Is One of the Biggest Factors

One of the strongest drivers behind declining birth rates is economic pressure.

Raising a child has become dramatically more expensive in recent decades. Housing, childcare, healthcare, and education costs have all increased faster than wages.

Research suggests rising housing costs alone may account for more than half of the decline in U.S. fertility rates since the early 2000s.

For young adults already paying high rent, student loans, and rising grocery prices, the financial reality can feel overwhelming.

If most of a paycheck already goes toward basic survival, the idea of supporting a child can seem financially impossible.

Surveys reflect this concern. One study found that 84% of Gen Z respondents say economic conditions influence whether they plan to have children.

In other words, many young people are not rejecting parenthood entirely—they simply don’t feel financially stable enough to pursue it yet.

Many Gen Z Adults Are Waiting Longer

Another major shift is the timing of parenthood.

Compared to previous generations, Gen Z is entering adulthood differently. Many young adults today are:

spending longer in education

focusing on career stability first

delaying marriage or long-term relationships

Research shows that many Gen Z women say they want children eventually, but they are not in a hurry to start families.

Starting later often results in smaller total family sizes, which contributes to declining birth rates.

Cultural Values Are Changing

Economics alone does not explain the shift.

Psychologists and sociologists point to changing cultural values as well.

Gen Z tends to prioritize:

• mental health
• personal development
• financial independence
• travel and experiences
• career exploration

Parenthood is no longer viewed as an automatic milestone. Instead, it has become a deliberate lifestyle decision.

Some surveys suggest that only about 30% of adults under 45 without children say they definitely want to become parents, while many remain uncertain.

This reflects a broader shift toward individual autonomy and self-directed life paths.

A Growing Distrust in Institutions

Another factor that is rarely discussed openly is trust in institutions.

Many Gen Z adults grew up during periods of global uncertainty and controversy, including:

• the 2008 financial crisis
• the COVID-19 pandemic
• political polarization
• Artifical Intelligence
• growing wealth inequality
• the Epstein Files
• The Trump Presidency

For some people, major scandals and unresolved controversies—such as the continued public debate surrounding the Epstein files and the powerful individuals allegedly connected to them—have also contributed to a broader sense of institutional distrust.

Whether fairly or unfairly, events like these reinforce a feeling among some young people that systems meant to protect the public often fail to hold powerful figures accountable.

That sense of instability can subtly influence long-term life decisions, including whether to bring children into the world.

Social and Psychological Factors

Beyond economics and culture, there are deeper psychological influences shaping the decision.

Many Gen Z adults grew up during times marked by:

financial instability

global pandemics

climate change concerns

rapidly changing technology

These experiences can shape how people view the future.

If the world feels unpredictable, committing to raising children for the next two decades can feel like a far larger decision than it might have for previous generations.

Will Birth Rates Continue to Fall?

The big question for economists is whether this trend will continue.

Some analysts believe birth rates may eventually stabilize as Gen Z ages and becomes more financially secure.

Others believe declining fertility may represent a long-term structural shift across developed economies.

Countries such as Japan, South Korea, Italy, and Germany are already experiencing similar patterns.

Why Governments Are Paying Attention

Falling birth rates have major economic implications.

If populations shrink or age too quickly, countries can face challenges such as:

• smaller workforces
• slower economic growth
• pressure on retirement systems
• increased healthcare costs

Because of this, governments around the world are beginning to experiment with policies designed to support families, including:

• childcare subsidies
• paid parental leave
• housing assistance
• tax credits for parents

However, many experts argue that these policies must address the real economic barriers young people face if they are going to meaningfully change birth rate trends.

A Generation Redefining Adulthood

Ultimately, Gen Z is not simply rejecting parenthood.

Instead, they are redefining when—and under what conditions—they feel ready to start families.

For many young adults today, including myself as a 24-year-old woman who currently has no interest in having children, the decision is no longer automatic.

It’s something carefully weighed against finances, career goals, mental health, and the broader direction the world seems to be heading.

Until those factors shift, the global trend toward smaller families and delayed parenthood may continue.

And honestly, I believe that chosing to wait until the situation is right to have children makes you a good parent.