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 and ZG).
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.
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SOURCE HotPads