Consumers say veterinary care is among the last things they’d cut

When money gets tight, veterinary care is one of the last places consumers say they would cut back, according to survey data presented at the 2026 American Veterinary Medical Association (AVMA) Veterinary Business and Economic Forum. Panelists warned that housing costs, changing household demographics, and growing worry over unexpected bills are reshaping who owns pets and how they pay for care.

The opening panel of the virtual forum, held October 7-8, brought in experts from real estate, consumer finance, and dentistry. Their job was to give veterinary practice leaders a wider view of the economy, according to AVMA News coverage of the session.¹ AVMA chief economist Katelyn McCullock moderated.

"The macroeconomic trends may start in the national data, but eventually will show up in appointment demand, payroll decisions, client conversations, and the choices that practice leaders will make every single day," McCullock said.¹

Pet care holds its place, within limits

Consumers are becoming more selective about discretionary spending, said Jonathan Preciado, vice president of platform and partner insights at Synchrony.¹ Pet owners are feeling that pressure too. Nearly half of pet owners said unexpected expenses caused them financial concern in 2025, up from 1 in 3 in 2022. More than a quarter said a surprise cost of $250 or less would stress them.

Even so, veterinary care ranked low on the list of cuts in a December 2025 survey of 1063 CareCredit cardholders. Respondents said they would cut back on cosmetic procedures (79%) and elective medical treatments (58%) before cutting routine veterinary care (19%) or necessary veterinary treatments (13%).¹

"Even though consumers are facing a lot of pressure, there's a lot of this macroeconomic uncertainty … when it comes to their pet, we see that there is a little bit of priority there," Preciado said.

That loyalty does not mean pet budgets are untouched. About 55% of surveyed cardholders said the economy had led them to change their pet-related spending in the past year. Roughly 18% leaned more on financing or payment plans for veterinary care. Another 15% delayed or skipped preventive care or routine checkups, while 14% bought pet medications from cheaper sources.¹

Starting the cost conversation sooner

Preciado said consumers are weighing affordability earlier in the purchasing process. Practices can respond by expanding loyalty programs and starting financial conversations earlier in the course of care, according to the AVMA News report.¹ McCullock pointed to spectrum of care and transparency.

"Practicing spectrum of care, providing upfront and transparent communication about care costs, long-term costs, and short-term costs are likely going to be increasingly important to many, many pet owners … now and in the future," she said.

Housing pressures and future pet ownership

Pets increasingly influence homebuying, said Jessica Lautz, PhD, deputy chief economist and vice president of research at the National Association of Realtors.¹ Sixty percent of households have pets. Meanwhile, 16% of homebuyers now factor their pets into the house hunt.

"People are … really picking their neighborhoods and their home based on their pets," Lautz said. "And this has been a growing share of homebuyers nationwide for a number of years now."

Buying a home has also grown much more expensive. Adjusted for inflation, the income needed to buy a median-priced home with a 20% down payment climbed from $65,957 in 1995 to $108,192 in 2026, Lautz said. The housing shortage is sharpest for households earning $75,000 or less. That bracket includes most dog-owning (53.4%) and cat-owning (54.4%) households, according to the 2026 AVMA Pet Ownership & Demographics Sourcebook.¹ The US median household income is $87,460.

First-time buyers now make up a record-low 21% of homebuyers. Their median age is nearing 40, while the median age of repeat buyers is 62.¹ McCullock said tighter household budgets could affect whether people get a pet, add another, or choose a different kind of pet.

"That might change the whole trajectory of how many pets you're able to have in an entire lifetime," she said.

Lessons from dentistry

McCullock noted that dentistry and veterinary medicine share several traits. Both workforces are made up mostly of general practitioners. Both also operate outside the broader human health care system, with their own insurance and referral processes.¹ Marko Vujicic, PhD, chief economist and vice president of the Health Policy Institute at the American Dental Association, described a profession where practices are getting busier but consumer spending has not followed.

"Dental practices are reporting higher wait times and being busier, but the actual [consumer] spending in the economy on dentistry is not really taking off," Vujicic said.

He also pointed to labor shortages, particularly of dental hygienists, and insurance reimbursement rates that have fallen below practice expenses.¹

For comparison, veterinary practice revenue has grown roughly 3% to 5% year over year in recent years, according to Vetsource and AVMA Veterinary Industry Tracker data McCullock presented. Dentistry saw a significant drop in consumer spending during the COVID-19 pandemic. The pet sector as a whole, she said, has not historically seen similar dips, even during recessions.¹

"Veterinary care is always needed," McCullock said. "Demand for veterinary services will continue as long as folks have pets, and revenue growth is built into that."

References

1. Won C. Pets still a priority for owners amid economic pressures. AVMA News. October 14, 2026. Accessed October 15, 2026. https://www.avma.org/news/pets-still-priority-owners-amid-economic-pressures