Cities With High and Low Combined Childcare and Housing Costs

Families across the U.S. spend 52% of their annual income on housing and childcare combined, according to a new analysis from Redfin and the childcare platform Winnie. The study covered the 100 most populous metropolitan areas and found that the share varies wildly – from below 40% in some cities to above 95% in others.

In San Jose, California, the median household income was $176,401 in 2024, more than double the national median of $83,730. Yet that city's combined housing and childcare burden hit 83.1%. High pay does not shield families from high costs. A similar pattern plays out in other expensive coastal metros.

"A high-paying job in San Francisco or Los Angeles can get wiped out fast once you factor for rent and day care, while a lower-paying job in a smaller metro might actually leave your family with more disposable income," Redfin's chief economist Daryl Fairweather told Business Insider. "Like anything else, it's ultimately a tradeoff and the decision should depend on your personal circumstances."

The reverse also holds. Some cities with relatively cheap housing still demand a large share of income for childcare, leaving families with less breathing room than the home price alone suggests. "A cheap house doesn't always translate to a cheap life," Fairweather said. "We're seeing metros where housing is a steal, but childcare is eating up a big portion of the family budget, and vice versa in places like San Francisco. Families need to look at the whole picture before they decide where to plant roots."