The Most Expensive U.S. Cities to Raise Children: Annual Costs Reach Nearly $40,000 in San Francisco

Raising children in the U.S. can be a significant financial burden, especially in the nation’s most expensive cities. A recent analysis by Creditnews Research reveals that the average annual cost of raising a child in the 100 most-populous U.S. metro areas is $22,989, but this figure varies dramatically depending on location. In San Francisco, the cost reaches a staggering $37,340 per year, making it the most expensive city to raise a child in the U.S. Over the course of 18 years, this totals $672,120—more than double the national average cost of raising a child. Other cities topping the list include San Jose, California, where the cost is nearly identical at $37,305 per year, and Boston, with an annual cost of $35,236.

The study highlights how housing costs are a significant driver of these high expenses, with many of the most expensive cities also being some of the least affordable places to live in the U.S. For example, in New York City, raising a child costs an average of $32,115 annually, which totals $578,070 over 18 years. Even in cities like Los Angeles and Denver, where the annual costs are slightly lower, parents can expect to spend over $560,000 by the time their child turns 18.

On the other end of the spectrum, Jackson, Mississippi, represents the most affordable metro area, where the cost of raising a child is $14,661 per year. This stark contrast of nearly $23,000 annually between Jackson and San Francisco illustrates the profound impact of geography on family finances.

This analysis underscores the financial challenges faced by families living in large, expensive cities, where the cost of raising just one child can consume nearly half of the median household income, currently $79,090. These findings may influence family planning decisions, with many potentially reconsidering where they choose to live and raise their children based on these financial pressures.