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U.S. Renters Spend Almost as Much on Child Care as they Spend on Rent

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U.S. Renters Spend Almost as Much on Child Care as they Spend on Rent

Monthly child care costs more than the median monthly rent payment in more than a quarter of the metros analyzed by HotPads

- The average monthly cost of child care in the U.S. is only about $115 less than the median monthly rent payment.

- In some Northeast and Midwest markets, monthly child care costs are more than $150 higher than the typical monthly rent payment.

- Rents rose 2.3 percent in the past year, while child care costs rose 1.3 percent.

- Even in markets where monthly rents are more expensive than monthly child care costs, renters with children can expect to spend about half a month's worth of rent or more on child care.

PR Newswire

SAN FRANCISCO, Aug. 29, 2018 /PRNewswire/ -- More than a third of renters have kids at home,i and may find themselves balancing the rising costs of raising a family with the rising costs of renting a home or apartment.

According to a new HotPads® analysis, U.S. renters with children spend almost as much on child care as they spend on rent. The average cost of child care in the U.S. is $1,385 a month, according to a HotPads analysis of Care.com's Care Indexii. Nationally, the median rent payment is $1,500 per month -- $115 more than the monthly average cost of child care.

However, monthly child care costs exceed monthly rent costs in more than a quarter of the 48 metros analyzed. Renters in Pittsburgh can expect to spend $255 more each month on child care than they do on rent, more than any other metro analyzed.

In other less expensive rental markets, including Memphis, Tenn.; Louisville, Ky.; Oklahoma City, Okla.; and Buffalo, N.Y.; renters with children can expect to spend $155 or more on child care each month than they do on rent.

The cost of living is on the rise across the country, and that is reflected in both rental prices and child care costs. Over the past year, median rent across the U.S. rose 2.3 percent, while the average cost of child care rose 1.3 percentiii.

"As rents and child care costs march steadily higher, keeping up with these rising costs may be one of many factors keeping parents up at night," said Joshua Clark, economist at HotPads. "Rent appreciation has slowed from recent highs, but as the economic recovery matures, child care costs will likely continue to rise. For renters with young children in child care, that means any potential savings from softer rent appreciation could quickly be eroded by higher childcare expenses."

In expensive rental markets like San Jose, San Francisco and Los Angeles, rent prices are higher than child care costs. However, even in these hot markets, the average cost of child care is half the median monthly rent payment. The combination of high rents and high child care costs can put additional financial strain on families with young children – renters in these markets can expect to spend more on rent and child care combined than in any other metros analyzed.

Rising rents have more of an impact on renters with children who want more space, as monthly rent for two and three-bedroom rentals are rising faster than one-bedroom rentals nationwide –median rent for two and three-bedroom rentals rose almost 3 percent over the past year, while median rent for one-bedroom rentals rose about 2 percent.

According to the 2017 Zillow Group Consumer Housing Trends Report, renters with kids are more likely to prioritize the number of bedrooms and square footage in a rental when looking for a place to live.

HotPads is a Zillow® Group-owned apartment and home search platform for renters in urban areas across the United States. For more information on the U.S. rental market, visit HotPads.com.

Metropolitan Area

Median Rent

Average Monthly Child Care Costsiv

Difference Between Monthly Rent and Monthly Child Care ($)v

Total Monthly Cost of Rent and Child Care

United States

$1,500

$1,385

$115

$2,885

New York, NY

$2,360

$1,630

$730

$3,990

Los Angeles, CA

$2,885

$1,580

$1,305

$4,465

Chicago, IL

$1,785

$1,500

$285

$3,285

Dallas, TX

$1,660

$1,340

$320

$3,000

Philadelphia, PA

$1,665

$1,460

$205

$3,125

Houston, TX

$1,580

$1,475

$105

$3,055

Washington, DC

$2,170

$1,605

$565

$3,775

Miami, FL

$2,005

$1,385

$620

$3,390

Atlanta, GA

$1,450

$1,375

$75

$2,825

Boston, MA

$2,405

$1,850

$555

$4,255

San Francisco, CA

$3,455

$1,955

$1,500

$5,410

Detroit, MI

$1,285

$1,370

-$85

$2,655

Riverside, CA

$1,935

$1,340

$595

$3,275

Phoenix, AZ

$1,470

$1,315

$155

$2,785

Seattle, WA

$2,230

$1,680

$550

$3,910

Minneapolis, MN

$1,665

$1,490

$175

$3,155

San Diego, CA

$2,680

$1,515

$1,165

$4,195

St. Louis, MO

$1,195

$1,330

-$135

$2,525

Tampa, FL

$1,460

$1,275

$185

$2,735

Baltimore, MD

$1,745

$1,465

$280

$3,210

Denver, CO

$2,100

$1,535

$565

$3,635

Pittsburgh, PA

$1,095

$1,350

-$255

$2,445

Portland, OR

$1,930

$1,530

$400

$3,460

Charlotte, NC

$1,370

$1,465

-$95

$2,835

Sacramento, CA

$1,940

$1,435

$505

$3,375

San Antonio, TX

$1,380

$1,285

$95

$2,665

Orlando, FL

$1,505

$1,290

$215

$2,795

Cincinnati, OH

$1,220

$1,310

-$90

$2,530

Cleveland, OH

$1,195

$1,330

-$135

$2,525

Kansas City, MO

$1,250

$1,310

-$60

$2,560

Las Vegas, NV

$1,395

$1,365

$30

$2,760

Columbus, OH

$1,410

$1,350

$60

$2,760

Indianapolis, IN

$1,235

$1,305

-$70

$2,540

San Jose, CA

$3,675

$1,875

$1,800

$5,550

Austin, TX

$1,735

$1,475

$260

$3,210

Nashville, TN

$1,505

$1,315

$190

$2,820

Providence, RI

$1,750

$1,490

$260

$3,240

Milwaukee, WI

$1,385

$1,460

-$75

$2,845

Jacksonville, FL

$1,375

$1,290

$85

$2,665

Memphis, TN

$1,040

$1,230

-$190

$2,270

Oklahoma City, OK

$1,115

$1,275

-$160

$2,390

Louisville-Jefferson County, KY

$1,135

$1,315

-$180

$2,450

Hartford, CT

$1,640

$1,310

$330

$2,950

Richmond, VA

$1,450

$1,310

$140

$2,760

New Orleans, LA

$1,440

$1,285

$155

$2,725

Buffalo, NY

$1,275

$1,430

-$155

$2,705

Raleigh, NC

$1,470

$1,350

$120

$2,820

Salt Lake City, UT

$1,610

$1,270

$340

$2,880

HotPads

HotPads is an efficient rental search platform for urban areas across the United States, with features designed for competitive markets such as map-based search, real-time notifications and detailed information on landlords and property managers that help renters spend less time searching and more time feeling excited about their next home.

Launched in 2005, HotPads is based in San Francisco and is owned and operated by Zillow Group, Inc. (NASDAQ:Z).

HotPads is a registered trademark of Zillow, Inc.

i More than a third of renters live with children under the age of 18, according to the 2017 Zillow Group Report on Consumer Housing Trends.
ii For this analysis, HotPads analyzed child care costs in the U.S. and 48 metro areas using data from Care.com's Care Index and the U.S. Census Bureau. Average child care costs were calculated using Care.com data on at-home and in-center child care costs, then weighted and adjusted for inflation to July 2018 levels using data from the U.S. Census Bureau.
iii Data from the Bureau of Labor Statistics, July 2018
iv Calculated using Care.com data on at-home and in-center child care costs and weighted and adjusted for inflation to July 2018 levels using data from the U.S. Census Bureau
v Negative numbers indicate markets where child care is more expensive than rent.

 

Cision View original content:http://www.prnewswire.com/news-releases/us-renters-spend-almost-as-much-on-child-care-as-they-spend-on-rent-300703772.html

SOURCE HotPads

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