Redfin Reports Sending 2 Kids to Daycare Costs More Than Rent in Most Major U.S. Metros

Sending one child to daycare costs almost as much as rent in many metro areas, too, with Denver and Seattle leading for highest monthly daycare cost relative to median rent payment

(NASDAQ:RDFN) —In Denver and Seattle, families with one child pay nearly as much for daycare as they do for rent—while families with two or more children often spend significantly more on daycare than rent. That's according to a new report from Redfin (redfin.com), the technology-powered real estate brokerage.

The average monthly cost of sending one child to daycare in Denver is $1,434, equal to 83% of the typical rent payment ($1,720) in that metro area. Sending two kids to daycare in Denver costs $2,867, or 167% of the typical rent payment.

In Seattle, the average cost of sending one child to daycare is $1,660, equal to 80% of that metro area's rent payment ($2,065). For two kids, that's $2,320 for childcare, or 160% of rent.

Minneapolis comes next in terms of where childcare costs most relative to rent. The typical daycare cost in Minneapolis is $1,186, equal to 78% of the area's typical rent cost of $1,526 (155% for two kids). Rounding out the top five are San Francisco (childcare: $1,997, 74% of rent for 1 kid; 148% for 2 kids) and Baltimore ($1,147, 71% of rent for 1 kid; 142% for two kids).

For this analysis, Redfin used childcare cost data from the U.S. Department of Labor, and estimated March 2025 costs using inflation metrics. March 2025 rents are from Redfin's median asking rent data for the three months ending March 31, 2025. Included in this analysis are the 20 U.S. metro areas for which Redfin has sufficient childcare and inflation data. When this analysis says "daycare" or "childcare," it's referring to many different types of childcare, including center-based care and home-based care.

In Denver, Seattle, and San Francisco, families pay nearly as much for childcare as they do for rent because while housing is expensive in those places, so is childcare. San Francisco has the most expensive childcare in the country, followed by Seattle, Boston and Denver.

It's difficult for many American families to afford housing, especially as rents remain near record levels and the cost of buying a home is at an all-time high. Add the high cost of childcare, which is another non-negotiable cost for many families, and it becomes even more challenging to pay for basic needs.

Childcare costs are rising year over year in 17 or the 20 metro areas in this analysis, with the biggest increases in Seattle (10.4%), San Diego, CA (9.2%) and Boston (5%). Rents are rising in seven of the metros in this analysis–and they may start rising soon in many others.

"America has a housing affordability crisis—and it also has a childcare affordability crisis," said Redfin Chief Economist Daryl Fairweather. "When the combination of housing and childcare costs take up such a huge chunk of household income, it strains budgets and puts a major burden on working families. It also exacerbates inequality, with many women deciding to leave the workforce or put career advancements on hold rather than paying for childcare. Other Americans are choosing not to have children because they can't afford it. Expanding access to more affordable childcare would go a long way toward easing the burden on young families."

Paying for both childcare and rent eats up a significant portion of household income in much of the country. Take Philadelphia, which falls roughly in the middle in terms of both childcare and rent costs, as an example: Sending one child to daycare plus paying rent eats up nearly half (46%) of the local median household income. In both Denver and Seattle, the combination of rent and childcare costs roughly one-third of median household income.

Sending Two Kids to Daycare Costs More Than Rent in 14 of the 20 Metros in This Analysis

Sending two kids to daycare costs more than rent in 14 of the 20 metros in Redfin's analysis. As noted above, the premium of childcare for two kids to rent is the biggest in the places where it's biggest for one kid: Denver, Seattle, Minneapolis, San Francisco and Baltimore.

The cost of childcare for two kids also clocks in at more than rent in St. Louis, Washington, D.C., Phoenix, Chicago, Houston, Dallas, Boston, Philadelphia and Riverside, CA.

Using the Philadelphia example, sending two kids to daycare costs an average of $1,922, more than the typical rent payment of $1,885. The combined cost of rent and daycare for two kids in Philadelphia is equal to 61% of the local median income.

"When rent and childcare take up half of a family's income, and you add the cost of other essentials like groceries and bills, there's not much left for anything else," Fairweather said. "That makes the decision to have children a huge financial sacrifice, where families are forced to live on the financial edge, without much disposable income or money to put into savings, until their kids are older."

It's worth noting that a major difference between rent and childcare costs is that the latter is typically temporary; kids can attend free public school starting in kindergarten (or earlier, in some parts of the country). Also, while Redfin assumed the cost of sending two children to daycare is double the cost of sending one child, many childcare centers offer sibling discounts; the payment for the second child may be slightly less than that for the first.

The only places where sending two kids to daycare costs less than rent are Miami, Los Angeles, New York, Atlanta, Tampa, FL and San Diego.

For the last three, the difference is nominal; sending two kids to daycare in those metros costs roughly 97% of rent. In Miami, Los Angeles, and New York, it's mainly because monthly rents are so high, with medians clocking in between $2,400 and $2,900.

Childcare Costs Are Low Compared to Rent in Miami, Los Angeles, and New York—But Paying For Both Still Eats Up Roughly Half the Median Income

In Miami, the average cost of daycare is equal to just 32% of the typical rent payment. Miami is the metro area where childcare costs least relative to rent, partly because the cost of childcare is relatively low and partly because rents are high.

Miami has the third-lowest average childcare cost of the metros in Redfin's analysis, clocking in at $764 per month (only Houston and Atlanta have lower averages), while it has the sixth-highest rent, at $2,415.

Los Angeles and New York come next in terms of where childcare costs least relative to rent. In the Los Angeles metro, it costs an average of $1,145 to send one child to daycare, which is equal to 42% of the local rent payment ($2,747). In New York, it costs $1,208, equal to 43% of rent ($2,843).

New York has the highest rent in the country, and Los Angeles has the third-highest rent (Boston comes in second). In fact, the high cost of rent in Miami, Los Angeles and New York pushes those metros to the top of the list in terms of how much money families are spending on the combination of rent and childcare. Paying for childcare for one child and rent eats up half of the local median household income in Miami, the highest share of all the metros in this analysis.

In both Los Angeles and New York, the combo of those costs eats up nearly half (48% and 49%, respectively) of the local median income, the next-highest shares.

To view the full report, including metro-level insights and additional methodology, please visit: https://www.redfin.com/news/childcare-housing-costs-2025

About Redfin

Redfin (www.redfin.com) is a technology-powered real estate company. We help people find a place to live with brokerage, rentals, lending, and title insurance services. We run the country's #1 real estate brokerage site. Our customers can save thousands in fees while working with a top agent. Our home-buying customers see homes first with on-demand tours, and our lending and title services help them close quickly. Our rentals business empowers millions nationwide to find apartments and houses for rent. Since launching in 2006, we've saved customers more than $1.8 billion in commissions. We serve approximately 100 markets across the U.S. and Canada and employ over 4,000 people.

Redfin's subsidiaries and affiliated brands include: Bay Equity Home Loans®, Rent.™, Apartment Guide®, Title Forward® and WalkScore®.

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