Housing and Childcare Consume More Than Half of the Typical U.S. Family's Income--But Costs Vary Widely by Metro

• Where a family lives can change the affordability equation: housing and childcare consume 40% of the typical working family's income in Little Rock, compared with 97% in Los Angeles.
• That's why Redfin has partnered with childcare marketplace Winnie to bring local childcare information to every for-sale home listing on Redfin.

SEATTLE, Aug. 17, 2026 /PRNewswire/ -- Nationwide, the typical working family buying a home today would spend roughly half (52%) of their annual income on housing and childcare combined, according to a new report from Redfin, the real estate brokerage powered by Rocket. But where a family lives can dramatically change how much of their budget goes toward these two major expenses.

Using data from Redfin and Winnie, the largest marketplace for childcare and early education in the U.S., Redfin estimated the typical annual cost of buying a home today along with childcare for one child, and compared that to the median local household income for the nation's 100 largest metro areas.

Working families in Little Rock, AR spend just 39.8% of their income on housing and childcare combined—the lowest share among the 100 most populous U.S. metros. Housing and childcare cost the typical Little Rock working family $29,151 per year, compared with a median local income of $73,170.

Contrast that with Los Angeles, where the median-earning working family spends nearly all of their annual income (96.8%) on housing and childcare, the highest share in the nation. The typical cost of housing combined with childcare in the City of Angels is $94,613 per year, just about $3,000 less than the median local income of $97,775.

That wide range means families weighing where to live may want to look beyond home prices and consider childcare as part of the overall cost-of-living equation. A metro with relatively affordable housing may have more expensive childcare, while a higher-cost housing market may offer higher incomes or access to public programs that change the calculation.

"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."

That's why Redfin has partnered with Winnie to bring local childcare information to every for-sale home listing on Redfin. House hunters can now view daycare and preschool options closest to each listing, as well as key data points that paint a full picture of what childcare looks like in the area.

Childcare Math Can Change Over Time and Vary by Families' Individual Circumstances

These comparisons are most relevant during the years when families are paying for full-time childcare, which is typically before children enter elementary school.

The amount families actually pay can vary substantially based on their circumstances and the programs available where they live; public pre-K and childcare subsidies can reduce families' out-of-pocket costs. The option for public school starts in kindergarten in most places, but some, like California, Florida and Wisconsin, offer free universal pre-K, which helps ease the cost of childcare. Some places have programs for free childcare for younger kids and toddlers. In New York City, one of the most expensive places in the country, Mayor Zohran Mamdani has made universal childcare a signature policy and has started rolling it out. The city of San Francisco offers free or low-cost childcare for many families.

That means the affordability picture isn't necessarily static. A family may face a particularly expensive childcare bill for a few years, then see costs fall when a child becomes eligible for public pre-K or kindergarten.

Midwest and Southern Metros Leave Families With the Most Room in Their Budgets

The metros where housing and childcare consume the smallest share of income are concentrated in the Midwest and South, where home prices and daycare remain fairly affordable relative to local wages.

Working families in Little Rock, AR spend just 39.8% of their income on housing and childcare combined, the lowest share in the country, as stated above. Oklahoma City (40.8%), Des Moines, IA (41.8%), Warren, MI (42.2%) and St. Louis (42.2%) are the next-most affordable metro areas by this measure.

Working Families Feel the Biggest Affordability Squeeze in California and New York

After Los Angeles, New York is the most expensive metro area for working families. The typical family there spends 95% of their income on housing and childcare. It's followed by three other expensive parts of California: San Francisco (94.2%), Anaheim (93.5%) and San Jose (83.1%).

All in all, seven of the 10 least affordable metros are in California, largely because of exceptionally high home prices—even in places with relatively high incomes. In San Francisco, for instance, housing and childcare combined total $152,646 annually, compared with a median local income of $162,118—the highest income in the country other than San Jose.

Springfield, MA stands out as the only Northeastern metro in the top 10 outside New York. While housing costs are more moderate than in coastal California, it has the fourth-most expensive childcare in the country—topped only by New York and two other Massachusetts metros, Boston and Worcester. Springfield's median annual housing costs are $35,200, while the median childcare cost is $26,340. Childcare is particularly expensive in Massachusetts because there's a shortage of available slots, strict staff-to-child ratio regulations, and high operational and labor costs. Many other parts of the country face the same issues, though perhaps to a lesser extent.

To view the full report, including methodology and more metro-level rankings, please visit:
https://www.redfin.com/news/housing-childcare-costs-winnie

About Redfin 
Redfin is a technology-driven real estate company with the country's most-visited real estate brokerage website. As part of Rocket Companies (NYSE: RKT), Redfin is creating an integrated homeownership platform from search to close to make the dream of homeownership more affordable and accessible for everyone. Redfin's clients can see homes first with on-demand tours, easily apply for a home loan with Rocket Mortgage, and save thousands in fees while working with a top local agent.

You can find more information about Redfin and get the latest housing market data and research at https://www.redfin.com/news. For more information about Rocket Companies, visit https://www.rocketcompanies.com.

SOURCE Redfin