The Most Expensive U.S. Cities To Raise Kids [2024 Data Study]

As living costs continue to rise across the U.S., the financial challenges facing current and future parents are a growing concern. The cost of raising children has escalated significantly in recent years, making parenthood increasingly difficult to afford, particularly in urban areas where expenses such as housing and childcare are steep.

According to a recent Pew Research survey,¹ 36% of adults aged 18 to 49 who do not have children cited affordability as a top reason for their decision. At the same time, data from the Federal Reserve² shows that only 64% of existing parents reported doing at least “OK” financially in 2023 — down from 75% in 2021, and the lowest level since 2016.

While the high cost of childcare — often exceeding $1,000 per month in some areas — receives the bulk of attention, families with kids must also manage added expenses across housing, food, healthcare, transportation, and other necessities. Using data from the Economic Policy Institute (EPI), this analysis examines how annual living costs differ between 2-adult households with and without children, factoring in all of these essential costs across major U.S. metropolitan areas and all 50 states.

The Cost of Having Children in the U.S.

Raising children significantly increases household expenses in the U.S., with the costs varying depending on the number of children in the household. According to the latest data, on average, having 1 child increases household costs by 40.4% annually, while having 2 children raises costs by 70.3%.

For a 2-adult household with no children, the average annual cost of maintaining a modest but adequate standard of living is $55,166. However, adding 1 child brings that figure up to $77,469 — a difference of $22,303. For families with 2 children, average annual living costs total $93,922 nationally, or $38,756 more than what’s necessary for households without kids.

The Most Expensive States and Cities To Raise Kids

On a relative basis, Minnesota is the most expensive state to raise a child, with a 47.5% increase in living costs for families with 1 child compared to those without children. Wisconsin (+47.0%) and New York (+46.4%) follow closely. States in the Northeast and West, such as Connecticut, Massachusetts, Colorado, California, and Nevada, also rank high on the list.

When looking at total annual cost increases, New York tops the list, where adding 1 child results in an additional $30,008 in yearly expenses. Massachusetts follows closely behind at $29,906, with Connecticut, California, and Hawaii rounding out the top 5. These states, known for high housing and childcare costs, are some of the most expensive places in the country to raise kids overall.

Similar trends hold in major metropolitan areas as well. In Milwaukee, Wisconsin, it costs families 52.4% more to have 1 child compared to no children, the highest among the nation’s largest metros. Similarly, families in Rochester, New York; Minneapolis, Minnesota; and Buffalo, New York, need to budget for cost increases exceeding 50%. In terms of total dollar amounts, the San Francisco, California, metro is the most expensive (requiring an additional $35,363 per year), followed by San Jose, California, ($33,365) and Boston, Massachusetts ($31,578).

Locations in the South are comparatively far more affordable for families with kids. In Mississippi, it only costs parents an additional 27.6% annually to support a child. Among the nation’s largest metro areas, Orlando, Florida, and Nashville, Tennessee, have the smallest percentage increases, both below 33%.

Full Results

Below is a complete breakdown of costs for 385 metropolitan areas and all 50 states. Upgraded Points conducted the analysis using the latest data from the Economic Policy Institute. For more information, see the methodology section below.

Methodology

The data used in this study is from the Economic Policy Institute’s Family Budget Calculator. To determine the most expensive locations for raising kids in the U.S., researchers at Upgraded Points calculated the percentage difference in the required living costs to maintain a modest but adequate standard of living for 2-adult households with children compared to 2-adult households without children. These costs factor in housing, childcare, healthcare, transportation, food, and other necessities. For the purpose of this study, single-child households are assumed to have a 4-year-old, whereas 2-child households are assumed to have a 4-year-old and an 8-year-old. County-level data was aggregated to metropolitan areas and states using population-based weighted averages. All dollar figures shown are in 2023 dollars.

Final Thoughts

Raising children in the U.S. has become increasingly challenging as living costs continue to rise. Parents, especially in major metropolitan areas, have faced sharp increases in expenses across housing, childcare, healthcare, and other essentials. These financial strains are leading many younger adults to reconsider or delay starting families as they weigh the affordability of raising children against their financial stability.

To address these challenges, both recognition of the burdens families face and proactive policy measures are required. Expanding access to affordable childcare, increasing family-friendly tax credits, and supporting affordable housing initiatives are just a few ways to ease these pressures. As costs continue to rise, understanding the specific challenges faced by families across different parts of the country is key to creating a more supportive environment for parents and future generations.

References

1. Minkin, Rachel; Horowitz, Juliana Menasce; and Aragão, Carolina. Pew Research Center. (2024m July 25). The Experiences of U.S. Adults Who Don’t Have Children. Retrieved on October 30, 2024 from https://www.pewresearch.org/social-trends/2024/07/25/the-experiences-of-u-s-adults-who-dont-have-children/.
2. Board of Governors of the Federal Reserve System. (2024, May 21). Report on the Economic Well-Being of U.S. Households. Retrieved on October 30, 2024 from https://www.federalreserve.gov/consumerscommunities/sheddataviz/wellbeing.html.