Increase In Home Prices Lead To A Decline In Births
Being a parent alone is a difficult job and with the rising cost of living including housing, the more reasons would-be parents are reassessing their financial situations before growing their family.
A recent report by real estate website, Zillow indicated an increase of 10% in home values relative to the 1.5% decrease in birth rates among women between 25-29.
This was notably observed in Los Angeles County, where rising home values prompted 2,588 fewer babies born to women in this age group in 2016 than would have other been expected.
Outside of California, other cities like Chicago, Seattle, Austin and New York are also showing a huge decline in birth rates in respect to rising home values.
Zillow senior financial expert Aaron Terrazas said that the information adds another layer to the contention that rising housing costs are adding to significant deferrals in accomplishing various key life milestones, including getting married and buying a first home.
Several elements could be prompting millennial women to postpone or to forego having kids. However, the drop in birth rates could likewise be demonstrative of the fact that fewer Americans opt to have children in preparation to a coming recession.
And in some cities, rising home costs didn’t prompt a lower fertility rate among women ages 25 to 29. In Omaha, Neb., and Provo, Utah, for instance, the birth rate rose between 2010 and 2016 despite home values climbing roughly 10%.