Key facts
- Families in the 10 least expensive U.S. metros spend an average of 43.8% of their income on combined housing and childcare costs.
- Dayton, Ohio, has the lowest combined cost at 43.8% of income, with median annual housing costs of $20,459 and childcare costs of $13,788.
- Louisville, Kentucky, ranks second with 43.4% of income spent on housing and childcare, with median annual housing costs of $22,668 and childcare costs of $12,780.
- Tulsa, Oklahoma, is third with 43.3% of income dedicated to these expenses, featuring median annual housing costs of $21,879 and childcare costs of $10,860.
- Nationally, families spend 52% of their income on housing and childcare combined.
- In some cities, the combined cost of housing and childcare can exceed 90% of a family's income.
Housing and childcare expenses can consume a significant portion of family income, particularly in the nation's most populous metropolitan areas. A new analysis by Redfin, in collaboration with childcare data platform Winnie, reveals that families nationwide spend an average of 52% of their income on these two essential costs combined. However, in some cities, this figure can soar above 90%.
The study identified the 10 metropolitan areas where the combined cost of housing and childcare represents the smallest share of family income. Dayton, Ohio, tops this list, with residents allocating 43.8% of their income to these expenses. This includes a median annual housing cost of $20,459 and a median annual childcare cost of $13,788, against a median household income of $78,105.
Following Dayton, Louisville, Kentucky, ranks as the second most affordable metro in this regard, with 43.4% of income going towards housing and childcare. Median annual costs there are $22,668 for housing and $12,780 for childcare, with a median household income of $81,757.
Tulsa, Oklahoma, comes in third, with 43.3% of income dedicated to housing and childcare. Median annual housing costs are $21,879, childcare costs are $10,860, and the median household income is $75,570.
Redfin's chief economist, Daryl Fairweather, noted that high-paying jobs in expensive cities can be quickly offset by high rent and childcare costs. Conversely, a lower-paying job in a less expensive metro might leave families with more disposable income. She emphasized that the decision of where to live involves trade-offs based on personal circumstances, and a comprehensive view of both housing and childcare expenses is crucial.