Cities vs. Suburbs: On Costs, Suburbs Win

While cities offer many benefits–quality of life, proximity to work and public transportation–cost isn’t one of them.

A new report by Zillow Inc., Seattle, and Care.com, Waltham, Mass., found that city living comes with a premium in most major metros, particularly for families with kids. Nationally, families spend an average of $9,073 more per year to cover basic housing and child care costs in the city than in the suburbs, the report said.

Zillow and Care.com identified three common living expenses–property taxes, mortgage payments and child care costs–and calculated how much they cost around the country.

The report said nationally, families living in the city spend $43,652 a year on housing and child care. But in the suburbs they spend just $34,579. New York, Chicago and Dallas have the highest variance between urban and suburban living, with city dwellers paying as much as $71,237 more a year, or nearly $6,000 extra a month.

However, the report noted city living is not always more expensive. In Philadelphia and Baltimore, for example, families could pay up to $14,000 more a year to live in the suburbs. In Minneapolis, child care is nearly $4,119 more a year in the city, but housing costs are $189 cheaper.

Size also matters. The report also noted the median suburban home is nearly 280 square feet larger. Meanwhile, reported commute times are roughly the same between urban and suburban residents.

“Deciding whether to live in the city or suburbs is a personal choice, but when you do the math, it’s easy to see why moving to the suburbs is about more than just a bigger yard – it can also save you a lot of money,” said Zillow Chief Economist Svenja Gudell.

A recent Zillow Group Consumer Trends Report noted more than one-third of families exceed their initial budget when buying a home.