What Redfin and Winnie Found About Childcare and Housing Costs

For families deciding where to buy or rent, childcare can be as decisive as the home price. New data from Redfin, produced with childcare marketplace Winnie, estimates that households in the 100 most populous US metros spend 52% of annual income on housing and childcare combined, according to Business Insider.

In some metro areas, that share exceeds 90%. Los Angeles and New York are among the cities where the two line items take a large toll on family budgets. San Jose, California — where the median household income is $176,401, more than double the national median of $83,730 in 2024 — still shows an 83.1% combined housing and childcare burden.

Redfin chief economist Daryl Fairweather told Business Insider that a high-paying job in San Francisco or Los Angeles can be “wiped out fast” once rent and day care are factored in, while a lower-paying job in a smaller metro might leave more disposable income. He added that a cheap house does not always translate into a cheap life.

Why High Salaries Do Not Always Mean More Disposable Income

San Jose: high pay, low cushion

San Jose's median income is more than double the national median, yet housing and childcare still consume 83.1% of it. That matters because it shows cost-of-living pressure is not resolved simply by earning more; the local baseline for rent or a mortgage plus full-time care can absorb most of a six-figure salary.

The housing-only judgment misses childcare

Fairweather's caution about cheap houses reflects a second pattern in the data: some metros have relatively low housing costs but childcare costs that consume a large part of the budget. As a result, families can overestimate savings if they compare only home prices.

What 52% leaves behind

The national average still means a typical family is using half its income on two categories before groceries, transport, medical costs and savings. The cities above 90% therefore face a much tighter constraint, rather than a simple preference for high-cost living.

How Families Can Apply the Cost-Share Numbers to Their Own Budget

The Redfin-Winnie calculation gives families a concrete way to test a move or job offer.

  • Calculate your own combined share: add annual rent or mortgage payments and childcare costs, then divide by your household income. Use 52% as a national comparison point.
  • Do not assume a high salary in a costly metro is automatically better. San Jose households at a $176,401 median income still spent 83.1% on housing and childcare.
  • Compare home prices and childcare costs together. A lower-cost home can hide child care expenses that erase the savings.