🐾 Pets or Payments? Why Rising Pet Costs Could Be a Recession Warning Sign

Neil Caron
4 days ago
2 min read

August 9, 2025 | Financial Trends | Presented by ReadySetLoan™

Since the pandemic, Americans—including plenty right here in Connecticut—have been spending more on their furry friends than ever before. But as inflation bites, that puppy love might be hitting a financial wall. The post-COVID pet boom is turning into a bust for many households, and it’s not just an animal issue—it’s an economic one.

A Pandemic Love Story… With a Price Tag

When the world shut down, Americans opened their hearts—and their wallets—to new pets. In 2020 alone, households across the U.S. adopted nearly 23 million new pets. And with those wagging tails came spending sprees on premium pet food, boutique grooming, subscription boxes, doggie daycares, and even "barkitecture" (yes, luxury dog houses are a thing).

But now, the financial leash is tightening.

🐶 From Pampered to Pinched: CT Households Cut Back

Connecticut residents are feeling the pinch. Local pet owners are trimming back on non-essentials, skipping pet insurance, and even delaying vet visits. Nationally, Americans are expected to spend $144 billion on pets this year—still high, but the slowest growth rate since 2008.

That’s no coincidence. Just as the housing market reflects broader financial health, shifts in pet spending often echo what’s happening with the economy.

“In times of economic stress, pet spending is often one of the first ‘discretionary’ expenses to be reduced,” says Neil Caron, Area Sales Manager at CMG Mortgage. “It’s a surprisingly reliable economic signal.”

RSL Piggy Points 🐷

Here’s what this means for Connecticut families and homebuyers:

🐾 Economic Pulse Check: When pet spending slows, it often mirrors shifts in employment, disposable income, and inflation—all factors that also influence mortgage trends.
🏠 Budget Priorities Matter: Rising costs have many families reassessing budgets. Mortgage payments, property taxes, and utility bills often take priority—meaning fewer splurges elsewhere.
💰 Financial Flexibility is Key: Homeowners in CT with equity may consider options like HELOCs or refinancing to free up funds—but it's critical to explore wisely.
📉 Recession Watch: When luxury spending—on pets, travel, or dining—drops off, economists take note. It could foreshadow slower growth or a housing market cooldown.

Neil’s Take 🎙️

“People's spending choices reflect their financial confidence. When we see households in Connecticut cutting back on pet care, it’s not about neglect—it’s about navigating rising costs. For homebuyers and homeowners alike, it’s a reminder to make smart, strategic financial decisions now to weather what may lie ahead.”— Neil Caron, Area Sales Manager, CMG Mortgage

🏁 The Finish Line: Plan Ahead with ReadySetLoan™

From furry friends to fixed-rate mortgages, your financial world deserves expert guidance.

Whether you're budgeting for a new home or considering a refinance, ReadySetLoan™ is your trusted resource across Connecticut. We're here to help you get ahead—without sacrificing what (or who) matters most.

Let’s get you to the finish line—smart, informed, and financially ready.

Visit ReadySetLoan.com to start your journey.