U.S. households are on the decline, according to a new report from Finances Online. The report shows that the number of U.S. households has dropped percentage wise to just over 2.63 percent. These figures reflect the number of people living in a household, a rate that has been steadily on the decline since 2010. As of 2020, there were 128.45 million households in the U.S. This number was expected to climb to 132 million by 2021, a growth rate well below what experts would like to see. 

To put into perspective, the average household was 5.7 people in 1790, when the birth rate was much higher. Despite the distance in time, experts believe these figures are “far removed” from where they should be. 

Experts note that one of the main factors in household decline is dropping fertility rates. In 1790 the rate was at 7.3 births. By 1940 this had dropped to 2.5 births. There is also a significant drop in the number of extended family members living in the home. 

Today, children are not called upon as frequently to take care of elderly relatives. In 1850 more than 70 percent of people over the age of 65 lived with their adult children. By 2000, this rate had dropped to 15 percent. 

The rise in single-person households has also pushed numbers down, as current generations marry less frequently and at a lower rate. 

U.S. households remain predominantly white at a rate of 60.1 percent in 2019. These figures combine both white and Hispanic households. Ethnic households, however, are earning higher incomes than white households. Asian households earned an average of $87,194, while non-Hispanic whites earned $70,642, Hispanics earned $51,450, and Blacks earned $41,361. 

Researchers believe the shape of the U.S. household will be dramatically affected by the participation of women in the workforce. It’s believed 2020 was the beginning of negative population growth. U.S. fertility rates currently sit at 1.77 births per woman. 

Women will continue to enter the workforce in roles that require a higher level of complex and cognitive work, while roles traditionally filled by men will become more automated.