• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

The teenage dream of owning a car is dying

By
Mark Penn
Mark Penn
Down Arrow Button Icon
By
Mark Penn
Mark Penn
Down Arrow Button Icon
July 22, 2015, 9:59 AM ET
Photograph by Muriel de Seze — Getty Images

Detroit has seen a lot of changes through the years—the rise of Japanese manufacturing, the growth of SUVs and trucks replacing the station wagon, and now the birth of the electric car. But there is one change they probably were not expecting: that people would just stop driving. That’s right—what was once the dream of every teenager—getting a driver’s license—has fallen off dramatically in the last few decades.

In 1983, nine in 10 19-year-olds had a license, but that number has now fallen to about two-thirds. The decline is even more severe among 17-year-olds. Just 30 years ago, nearly seven in 10 of those kids had a license; now that has dropped to less than half, 46%. And no license means no car. Not only are demographics changing so that there are fewer teenagers than ever before relative to the rest of us, fewer of them will be able to drive. On the good side, that should correspond to a significant decrease in teenage deaths from drunk driving, because they won’t even be driving.

Why have teens dropped driving? According to a 2013 survey by the University of Michigan Transportation Institute, the No. 1 reason unlicensed 18- and 19-year-olds don’t have a license is “too busy or not enough time” (40%), followed by “owning and maintaining a vehicle is too expensive” (17%). The No. 3 reason is also notable: 15% say they are “able to get transportation from others.” What exactly are kids “too busy” with to get a license? It’s unlikely they are going to school or studying more, which suggests driving has just become a much lower priority because getting around doesn’t require a license anymore. First, mothers and fathers have become drivers. Today’s helicopter parents are only too willing to provide chauffeur service for kids who never leave the house alone until they are well into their teens. Second, smartphones mean other parents are more available for easy ride coordination, and of course the growth of services like Uber and Lyft lets kids call a car and charge it to their folks.

teens-drivers-license

The shift during this period from rural areas to the suburbs and cities also made driving less of a necessity and more of a luxury. Between 1980 and 2010, the rural population of America went from 26% to 19%, suggesting that many young people went from outlying areas to college and then to cities where cars are prohibitively expensive. In 2011, for the first time in almost a century, the rate of urban population growth outpaced suburban population growth. Millennials in particular are staying single longer and having smaller families, making urban living—with all its walking, busing, and bike-sharing—much more appealing. The distances kids needed to travel started shrinking.

Automakers don’t seem to have panicked quite yet. They have been busy selling cars in China and selling a lot of new cars to women who entered the workforce and needed to commute. Still, one wonders why the Big Three have not been trying to make driver’s ed a mandatory course in high schools or funding the courses directly.

Some effects of the drop in teen drivers have been quite beneficial: Between 1986 and 2012, teen motor vehicle deaths in the U.S. dropped from 36.8 to 12.9 per 100,000 teens. Similarly, young non-drivers have done their part to lower U.S. gas consumption and carbon emissions: Between 2001 and 2009, Americans aged 16 to 34 dropped their average annual driving miles by 23%, a greater decline than among any other age group. This was a cure for climate change no one even conceived of—just let people tire of driving and move closer together, and instead of more fuel-efficient cars, you wind up with more fuel-efficient people.

The statistics show that there are some other things teens aren’t doing as much of anymore. Shortly after they started snubbing driver’s licenses, teen pregnancy rates dropped from 116.9 pregnancies per 1,000 girls in 1990 to 57.4 in 2010, the lowest rate ever reported. Similarly, the juvenile arrest rate started dropping in 1994 and hit a historic low in 2012. Perhaps there’s no relationship between these changes, but without a doubt, we are seeing a revolution in the teenage lifestyle.

license-survey

The percentage of teens with smartphones now exceeds the percentage with a license, and the smartphone—not the car—is the defining gadget of teenage life. It has ushered in an era of greater communication, greater sharing, less driving, less alcohol, less drugs (except maybe e-cigarettes), and more collaboration. It gives teens the ability to be together without driving across town, and to get across town without even taking a driver’s license test. A 2013 U.S. PIRG Education Fund report predicted that if the millennial-led decline in per-capita driving continues for another dozen years, total vehicle travel in the U.S. could remain well below its 2007 peak through at least 2040, despite a 21% increase in population.

But the future remains unknown as tech companies experiment with driverless cars. This will be the first generation in a long time with a huge part of the population unable to drive themselves, and either this is going to set off a boom in adult driving schools as people have families and move to the suburbs, or it will fuel the growth of shared driverless cars and greater urban living out of necessity, and change the character and landscape of the country.

Mark Penn is EVP and Chief Insights Officer at Microsoft. Previously, he served as worldwide CEO of Burson-Marsteller, CEO of Penn Schoen Berland, and White House pollster to President Bill Clinton; and he is the author of the bestselling book Microtrends: The Small Forces Behind Tomorrow’s Big Changes.

About the Author
By Mark Penn
See full bioRight Arrow Button Icon

Latest in

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • Future 50
  • World’s Most Admired Companies
  • See All Rankings
Sections
  • Finance
  • Leadership
  • Success
  • Tech
  • Asia
  • Europe
  • Environment
  • Fortune Crypto
  • Health
  • Retail
  • Lifestyle
  • Politics
  • Newsletters
  • Magazine
  • Features
  • Commentary
  • Mpw
  • CEO Initiative
  • Conferences
  • Personal Finance
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
About Us
  • About Us
  • Editorial Calendar
  • Press Center
  • Work At Fortune
  • Diversity And Inclusion
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in

BankingCEO salaries and executive compensation
Bank of America lifts Moynihan’s pay 17% to $41 million for 2025
By Katherine Doherty and BloombergFebruary 13, 2026
13 minutes ago
Startups & VentureIPOs
SpaceX said to weigh dual-class IPO shares to empower Musk
By Ryan Gould, Edward Ludlow and BloombergFebruary 13, 2026
1 hour ago
broker
AISoftware
Marc Andreessen made a dire software prediction 15 years ago. Now it’s happening in a way nobody imagined
By Nick LichtenbergFebruary 13, 2026
2 hours ago
Personal FinanceSavings
How to build a CD ladder: Lock in high APY without losing complete access to your money 
By Joseph HostetlerFebruary 13, 2026
2 hours ago
Donald Trump shrugs as he stands behind the podium in the White House briefing room.
North AmericaTariffs and trade
90% of Trump’s tariffs are paid for by American consumers and companies, New York Fed says
By Sasha RogelbergFebruary 13, 2026
4 hours ago
HealthDietary Supplements
5 Best Nootropics of 2026: Expert Reviewed Supplements
By Christina SnyderFebruary 13, 2026
4 hours ago

Most Popular

placeholder alt text
Economy
Some folks on Wall Street think yesterday’s U.S. jobs number is ‘implausible’ and thus due for a downward correction
By Jim EdwardsFebruary 12, 2026
1 day ago
placeholder alt text
Economy
‘Nothing short of self-sabotage’: Watchdog warns about national debt setting new record in just 4 years
By Tristan BoveFebruary 11, 2026
2 days ago
placeholder alt text
Crypto
Bitcoin reportedly sent to wallet associated with Nancy Guthrie’s ransom letter providing potential clue in investigation
By Carlos GarciaFebruary 11, 2026
2 days ago
placeholder alt text
Success
Ex–Google exec says degrees in law and medicine are a waste of time because they take so long to complete that AI will catch up by graduation
By Preston ForeFebruary 11, 2026
2 days ago
placeholder alt text
Commentary
Something big is happening in AI — and most people will be blindsided
By Matt ShumerFebruary 11, 2026
2 days ago
placeholder alt text
Economy
America’s national debt borrowing binge means interest payments will rocket to $2 trillion a year by 2036, CBO says
By Eleanor PringleFebruary 11, 2026
2 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.