Pet Ownership Costs Rise as Veterinary Care Drives Affordability Concerns

Pet ownership costs are continuing to rise, reshaping how Americans think about adoption and ongoing care as veterinary services and related expenses place increasing pressure on household budgets, according to new analysis from the Bank of America Institute.

The report highlights that while pets remain deeply embedded in American households — about 95 million homes, or roughly 71%, currently own at least one — the financial strain of maintaining that bond is becoming more pronounced. That shift is influencing both adoption trends and day-to-day spending decisions.

Veterinary Advantage interviewed Chris Howard, a practice solutions executive at Bank of America, about what’s driving the change and how it is showing up in consumer behavior.

Howard said affordability pressures are increasingly shaping adoption decisions, particularly among lower- and middle-income households.

“Many household budgets are currently under meaningful pressure, especially among lower- and middle-income consumers, and our data reflects that. While 71% of Americans own a pet, the share of households with a pet has declined over the past two years and adoption momentum has softened. The cumulative weight of ownership costs is driving that decline.”

He pointed to veterinary care and food as primary cost drivers, noting that the broader “total picture” of ownership is prompting many consumers to reconsider.

Inflation and structural pressures in veterinary care

The report also examines why veterinary costs have become a focal point of affordability concerns. Howard said the challenge is being shaped by both inflation and structural changes within the industry.

“In this case, inflation and structural changes in the veterinary industry are connected, and difficult to fully separate. Rising cost of goods and staffing expenses have put real pressure on veterinary practices, and those costs are reflected in what consumers pay at the point of care. In April, veterinary services inflation reached 5.5% year-over-year, adding pressure to household budgets. The widespread consolidation of privately owned veterinary practices in several marketplaces has largely erased independent ownership and driven prices higher, compounding the affordability pressure on consumers.”

Financial strain concentrated among younger and lower-income households

The data suggests affordability challenges are not evenly distributed. “The data suggests financial stress is weighing most heavily on lower- and middle-income pet owners,” he said. “Bank of America card data shows younger, lower-income households trimming pet store spending the most, with lower-income households also driving the sharpest decline in pet ownership over the past two years. These aren’t random fluctuations. They reflect households actively recalibrating what they can afford to spend on their pets.”

Spending shifts: discretionary cuts and delayed care

Consumers are not cutting pet-related spending uniformly. While discretionary purchases are declining, veterinary care trends show a more complex picture.

Howard explained that “both are happening, but in different ways.”

“On the discretionary side, consumers are pulling back on treats, toys and accessories, where cuts are easier to make without immediate consequences for pet health.”

However, the clinical side is more complicated.

“Bank of America card data shows consumers are spending more on veterinary care, yet according to VetSource, veterinary visit volumes have been declining, reflecting affordability pressures at the point of care. As costs continue to climb, we are seeing owners defer preventative care, with real implications for long-term animal health.”

He also noted that some of the decline in visits may reflect post-pandemic adoption trends rather than cost alone, as many COVID-era pets now require less frequent care.

“In some ways, this is the calm before the storm.”

Potential long-term implications for animal health

Howard cautioned that affordability challenges could eventually have broader consequences for animal welfare if preventive care continues to be delayed.

“When pet owners delay or skip preventative care — wellness visits, dental care, early diagnostics — they lose opportunities to catch and treat health concerns before they become more serious. When that pattern plays out across a large number of households, the cumulative effect on animal health and welfare becomes a genuine concern.”

He said veterinary practices can help mitigate these risks through client education and by encouraging tools like pet insurance and other payment options.

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