Redfin: Housing, Childcare Consume More Than 50% of Typical Family’s Income

(Image courtesy of Tatiana Syrikova/pexels.com)

Redfin, Seattle, reported the typical working family spends about 52% of its annual income on housing and childcare. However, those figures vary significantly by region.

Examining the 100 most populous metros, Little Rock, Ark., has combined housing and childcare costs of $29,151. That would consume 39.8% of the median local income of $73,170. Next lowest in terms of share of income is Oklahoma City, at 40.8%; Des Moines, Iowa, at 41.8%; Warren, Mich., at 42.2%; and St. Louis also at 42.2%.

In contrast, Los Angeles has the highest share, with the median-earning working family spending 96.8% of its income on housing and childcare. The typical cost of housing combined with childcare is $94,613 per year, but the median local income is $97,775.

Next on the list of “largest share” is New York, at 95%; San Francisco, at 94.2%; Anaheim, Calif., at 93.5%; and San Jose, Calif., at 83.1%.

Redfin used data from Winnie, a marketplace for childcare and early education, to estimate the typical annual cost of childcare for one child. The cost of full-time childcare is usually during the years before a child begins pre-K or kindergarten, depending on what services and subsidies are available to them.

“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. “And cost is only part of the equation. Families should also make sure childcare is actually available near where they want to live. If care is scarce or unaffordable, an otherwise affordable area may not be a practical place for a family with young children.”