SEATTLE – For working families, a home’s price tag doesn’t tell the whole story. When childcare is added to housing costs, families in some major U.S. metros are spending nearly all their income on the two expenses combined, according to a new analysis from Redfin and Winnie.
Nationwide, a typical working family buying a home today would spend 52% of its annual income on housing and childcare for one child.
Los Angeles has the biggest affordability squeeze: housing and childcare consume 96.8% of median household income. New York follows at 95%, with San Francisco at 94.2%, Anaheim at 93.5% and San Jose at 83.1%.
Meanwhile, families in the Midwest and South generally have more breathing room. Housing and childcare consume 39.8% of income in Little Rock, 40.8% in Oklahoma City, 41.8% in Des Moines and 42.2% in both Warren, Michigan, and St. Louis.
The findings highlight why families weighing a move may need to look beyond home prices and consider childcare availability and costs as part of the overall cost of living.
“Families considering a move should weigh both of those big costs—as well as job opportunities when deciding where to put down roots,” said Sara Mauskopf, co-founder and CEO of Winnie. “Families should also make sure childcare is actually available near where they want to live.”
Childcare costs can also change as children age, with public pre-K, kindergarten and local subsidies potentially reducing expenses.
Redfin and Winnie have partnered to bring childcare information directly to Redfin home listings, allowing shoppers to see nearby daycare and preschool options alongside homes for sale.