Raising a child is an expensive endeavor, and the cost varies significantly from city to city, largely influenced by factors such as housing and child-care expenses. A recent analysis by the financial advice platform SmartAsset reveals the most and least expensive cities in the US to raise a child.

According to the SmartAsset study, the San Francisco Bay Area tops the list as the priciest location to raise a child, with an average annual cost of $35,647.

This figure is almost double the national average of $20,813 and nearly three times the expense in Morristown, Tennessee, the least expensive city on the list where the annual cost of raising a child is $14,577​¹​.

Other high-cost cities include Santa Cruz-Watsonville, San Jose, and Barnstable Town, all of which exceed $33,000 annually.

The study’s findings take into account the additional spending of a two-adult household with one child compared to a childless household with two adults.

The costs incorporated in the calculation include food, housing, child care, health care, and transportation expenses, based on 2022 data from MIT’s Living Wage Calculator.

Housing emerges as a significant component of the total costs, which can vary from a little over $1,200 to almost $13,000 annually depending on the city​¹​.

Cost By City

Housing: A Major Cost Driver

According to the study, housing is a significant contributor to the total costs of raising a child. Depending on the city, the annual cost of housing can range from just over $1,200 to nearly $13,000​¹​.

Child-Care Shortage in Michigan

A state-wide child-care shortage has led to Michigan cities being among the most expensive places to raise a child. Ann Arbor, Kalamazoo, and Detroit-Warren-Dearborn all feature in the top 15 most expensive cities with annual costs of $31,670, $30,786, and $28,917​¹​.

California: Home to the Most Expensive Cities

California dominates the list of the most expensive cities to raise a child, with eight cities making it to the top 15. The San Francisco Bay Area stands out as the most expensive place in the US to start a family, with an average annual cost of $35,647. Other California cities on the list include Santa Cruz-Watsonville, San Jose, Napa, Santa Rosa-Petaluma, Oxnard-Thousand Oaks-Ventura, Greater Los Angeles Area, and San Diego​¹​.

The Most Affordable Cities

On the other end of the spectrum, Morristown, Tennessee, emerges as the most affordable city in the US to raise a child, with an average annual cost of $14,577. South Carolina is home to seven of the 15 most affordable cities, including Charleston, Greenville, and Columbia. The average annual costs in these cities are around or below $16,000​¹​.

The Overall US Average

Across the US, the average annual cost of raising a child stands at $20,813. This figure represents the extra spending for a two-adult household with one child compared with a childless household with two adults. The costs encompass food, housing, child care, health care, and transportation expenses​¹​.

The cost of raising a child in the US varies widely depending on the city. Parents and future parents should take these factors into account when considering the financial implications of starting a family.

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