In 2023, the U.S. fertility rate hit a historic low, with a larger percentage of women aged 25 to 44 having never given birth.
During that same year, 47% of Americans under the age of 50 said they're unlikely to ever have kids, according to data from the Pew Research Center.
Don't miss
-
Commercial real estate has beaten the stock market for 25 years — here's how savvy investors can become the landlord of Walmart, Whole Foods or Kroger
-
Car insurance premiums in America are through the roof — and only getting worse. But less than 2 minutes can save you more than $600/year
-
5 minutes could get you up to $2M in life insurance coverage — with no medical exam or blood test
Given the soaring costs of raising kids these days, it’s understandable if some of that cohort don’t desire starting a family because of the financial burden. The USDA's most recent estimate on raising one child through to the age of 17 puts the total cost at $233,610, based on 2015 data.
However, according to a New York Times article, many older Americans are sharing their “unspoken grief” about never having grandchildren — leaving some to wonder if they should throw money at the situation.
What if you’re in your mid-60s and always dreamed of being surrounded by grandchildren, but your adult kid isn’t interested? Should you offer to buy your child a house to help ease the financial burden, in the hopes they’ll change their mind about having a baby?
Doing so will likely alleviate some of their financial burden, allowing them to save up for the cost of raising a kid instead of stressing over a down payment or even a mortgage. But whether or not that’s the right (or appropriate) approach is up for debate.
Why the average wage-earner can’t afford kids
During the third quarter of 1994, the median U.S. home sale price was $129,700. By the third quarter of 2024, it was $420,400, according to the Federal Reserve.
Not only have home prices soared in the wake of the pandemic, but mortgage rates, after dipping to record lows, have remained elevated in the past few years.
This double whammy has put homeownership out of reach for many potential buyers, particularly first-timers who don’t have existing home equity to tap into.
In fact, based on today’s average 30-year mortgage rate of 6.81% (as of Nov. 29), a $420,400 home that’s 80% financed would leave its owner with monthly payments of roughly $2,202 for principal and interest alone.
However, according to data from the Bureau of Labor Statistics (BLS), salaried workers in the U.S. had median weekly earnings of $1,165 in the third quarter of 2024, which adds up to a $60,580 annual salary.