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Housing and childcare can consume nearly all income in some U.S. metros
Redfin estimates Little Rock families spend 39.8% of income on housing and childcare, versus 96.8% in Los Angeles.
Nationwide, Redfin reports that a typical working family buying a home today would spend about 52% of its annual income on housing and childcare combined. But the share varies widely across metro areas, driven by both housing costs and local childcare expenses.
In Little Rock, AR, Redfin and childcare marketplace Winnie estimate that working families spend 39.8% of income on housing and childcare, totaling $29,151 per year against a median local income of $73,170. In Los Angeles, the analysis finds families spend 96.8% of annual income on the same combined costs, or $94,613 per year, compared with a median local income of $97,775.
The study highlights that families weighing where to live may need to look beyond home prices and consider childcare as part of the overall affordability equation. Winnie co-founder and CEO Sara Mauskopf said families should weigh housing, childcare, and job opportunities, and also check that childcare is actually available nearby.
Redfin says it has partnered with Winnie to bring local childcare information to every for-sale home listing on Redfin, including daycare and preschool options closest to each listing and data points intended to help paint a fuller picture of childcare costs and availability. The comparisons are designed to be most useful during the years when families typically pay for full-time childcare before children enter school.