Key takeaways

• Pet care prices rival child care, with doggy day care averaging $200 a week vs. $320 weekly for infants.
• Pet care has become one of the fastest-growing service industries, with revenue up 90% over five years — more than double child day care’s growth rate.
• Nearly two in five pet owners say having a pet inspires good money habits, according to Empower research.

It may cost more to care for a child, but pet care prices are rising faster. Since 2020, pet services costs have increased 34.6%, compared with a 25.8% rise in child care prices, according to the Consumer Price Index.¹ That’s roughly 1.4 times the growth rate. The trend comes as 42% of Gen Z and Millennial adults say they prefer pets to children because they view them as less financially burdensome, according to a Harris Poll.²

What pet owners are paying

Caring costs can add up quickly. From daycare and boarding to walking, pet sitting, training, and grooming — services once considered optional are becoming routine expenses. Nearly 43% of dog owners say they’re concerned about the rising cost of pet care over their pet’s lifetime.³

Empower Personal Dashboard^TM data shows that, on average, Americans spent $350 a month on their pets in 2025 — that’s more than monthly expenses on personal care ($277), gas ($233), or hobbies ($164). For owners who regularly rely on doggy day care, the costs can be almost as high as caring for a child. Infant day care in the U.S. averages $332 per week, while doggy day care can also take a bite at about $40 per day ($200 for a typical work week) — though prices can vary considerably by region.^4,5

Read more: Can you claim pets on taxes? The truth on the "pet tax credit"

A booming pet economy

The growth in pet spending reflects broader industry expansion as pets increasingly become part of the family. The overall pet industry reached an estimated $157 billion in 2025, fueled in part by a boom in pet services revenue.⁶ According to U.S. Census data, revenue from pet care services rose about 89% from roughly $5.4 billion in 2017 to $10.1 billion in 2022 — more than double the approximately 42% growth in child day care services, which increased from about $41.2 billion to $58.4 billion over the same period.⁷ 

So-called “pandemic puppies” and other pets are playing a significant role in that growth. One study found that nearly half of Americans said they got a new dog during the COVID-19 pandemic; another shows that 26% of dog owners cited finding care for their pet when traveling or going to work as the biggest challenge associated with dog ownership.^8,9

Read more: The pros and cons of pet insurance

Gen Z pays a premium

Despite the rising costs of pet care, many pet owners continue to prioritize spending on their pets’ well-being. According to Empower research, more than a third of Americans (35%) say their pets motivate them to work harder and seek higher pay, and 42% of pet owners say the more money they make, the more they spend on their beloved companions.

Gen Z pet owners are the most likely to spend money on behavioral training (41%), doggy daycare (35%), specialized pet food (44%), and dog walking services (31%).¹⁰