$157 Billion in Pet Spending: What Property Operators Need to Know

The U.S. pet industry is not slowing down. According to APPA’s 2025 State of the Industry Report, Americans are projected to spend $157 billion on their pets this year, up from $152 billion in 2024. By 2030, APPA forecasts that figure reaching upto $192 billion.

For anyone managing or operating residential properties or hotels, these are not just consumer spending headlines. They signal a fundamental shift in how residents and guests prioritize their pets, and how much they are willing to invest in the experience of living and traveling with them.

What Do the Core Spending Numbers Show?

Pet owners are consistent, high-commitment spenders who treat animal care as a non-negotiable household expense. The average American pet owner spent $2,026 on their pet in 2024, according to Capital One Shopping’s research compiled from APPA and U.S. Census Bureau data. Dog owners averaged $68 per month per dog. Cat owners averaged $41 per month per cat.

Pet insurance alone accounted for $4.74 billion in U.S. premiums in 2024, a 21.4% year-over-year increase, according to NAPHIA. E-commerce pet spending is projected to reach $28.8 billion in 2025 and continue growing through the decade.

How Pet Spending Varies by State

Yes, dramatically, and the gaps reveal two very different operator opportunities depending on the market. New Jersey leads the nation with pet-owning households spending an average of $4,162 per year. New Hampshire ($4,113), Vermont ($3,802), Rhode Island ($3,734), and Massachusetts ($3,720) round out the top five. On the other end, Mississippi sits at $592, Alabama at $617, and Arkansas at $707. That is a 7x gap between the highest and lowest spending states.

The counterintuitive part: the states with the highest pet ownership rates are not the biggest spenders. Wyoming leads the country in ownership at 71.8% of households, but spends only $1,652 per household. New Jersey has one of the lowest ownership rates at 47.4%, but spends the most per household by a wide margin.

In high-income markets like the Northeast, pet-owning residents are investing thousands annually in their animals. That makes them a premium demographic, not just a segment to accommodate. In high-ownership states like Wyoming or West Virginia, the volume of pet owners creates demand for better pet infrastructure even at lower individual spend levels. The strategy differs, but the opportunity exists in both.

The table below offers a better insight into the spending patterns for states:

Metric	Top States	Bottom States
Highest per-household pet spending	NJ ($4,162), NH ($4,113), VT ($3,802)	MS ($592), AL ($617), AR ($707)
Highest pet ownership rates	WY (71.8%), WV (70.7%)	NJ (47.4%)
Spending vs. ownership pattern	Low ownership, very high spend per household	High ownership, lower spend per household

Why This Matters for Housing Operators

Pet-owning residents are a financially committed, high-retention demographic that most properties are still underserving. 62.4% of American households own pets. Pet spending is growing at a compound annual rate of nearly 5%, and the pet insurance market grew over 21% in a single year. This is mainstream consumer spending that directly shapes where people choose to live.

Properties that build real pet inclusivity into their communities, clear policies, smooth onboarding, and a resident experience that treats pets as part of the household will attract and retain these residents. Properties that do not will compete on price alone while their pet-owning prospects filter them out at the search stage. The $157 billion being spent on pets this year reflects how deeply people value their animals. Operators who understand that will be better positioned to turn pet inclusivity into a retention and revenue advantage.

Why This Matters for Hotel Operators

The same spending habits that shape where people live shape where they stay. 78% of American pet owners travel with their pets each year. 52% of travelers base their entire travel plans on whether accommodations accept their pets, according to pet travel industry data.

The global pet-friendly hotel market was valued at $4.1 billion in 2024 and is projected to reach $7.34 billion by 2029, growing at a 12.3% CAGR, according to The Business Research Company. Pet travelers are not looking for the cheapest room. They are looking for a hotel that welcomes their pet without friction, and they book with intention.

Hotels that treat pet-friendliness as a real brand strategy, with clear policies, trained staff, visible amenities, and strong online presence, will capture this growing segment. Hotels that technically allow pets without building an experience around them will lose those bookings to competitors who do. The $157 billion being spent on pets this year is not limited to housing. That spending follows pet owners into hotels, and the properties positioned to welcome them will see the difference in occupancy and revenue.

Conclusion

$157 billion is large enough to reshape how operators think about pets as a market segment. Whether the context is residential or hospitality, the underlying dynamic is the same: pet owners are high-investment, high-loyalty consumers who make decisions based on how well a property accommodates their animals.

The operators who build around that reality will capture more of it. The ones who treat pets as a compliance issue rather than a competitive advantage will keep leaving that demand on the table.

Frequently Asked Questions

How much will Americans spend on pets in 2025?

APPA projects $157 billion in total U.S. pet industry spending in 2025, up from $152 billion in 2024.

Which U.S. state spends the most on pets per household?

New Jersey leads at $4,162 per pet-owning household annually, according to Capital One Shopping's research compiled from APPA and U.S. Census Bureau data.

Why do high-ownership states not have the highest spending?

States like Wyoming have the highest ownership rates but mid-range per-household spending. High-income states like New Jersey have fewer pet owners proportionally but invest significantly more per animal. The two patterns require different operator strategies.

What does pet spending data mean for housing operators?

62.4% of U.S. households own pets and spend an average of $2,026 per year on their animals. These are financially committed residents who make housing decisions based on pet policies. Properties with genuine pet inclusivity attract and retain them at higher rates.

How large is the pet-friendly hotel market?

The global pet-friendly hotel market was valued at $4.1 billion in 2024 and is forecast to reach $7.34 billion by 2029 at a 12.3% CAGR, according to The Business Research Company.