Upper-Middle Class Most Likely to Rely on Family for Childcare

Families are struggling to get ahead as living expenses and commercial childcare costs soar

– Almost 40 percent of upper-middle-class parents surveyed said they rely on extended family for childcare, compared to 29 percent of low-income parents.

– About 26 percent of respondents said proximity to family drives their decision about where to live, with the trend more pronounced among low-income households in expensive markets.

– Across all income brackets, 33 percent of households with children rely on extended family for childcare and 17 percent get help covering living expenses.

– Housing and childcare expenses cost about $43,652 a year in urban areas and about $34,579 a year in the suburbs.

Upper-middle-class families are more likely than low or upper-class families to rely on their extended family for childcare, according to the Zillow® Housing Aspirations Report™ (ZHAR)ii.

Almost 40 percent of upper-middle-class parents surveyed said they rely on extended family for childcare, compared 29 percent of low-income parents and 33 percent of high-income parents.

Zillow’s finding highlights another way middle-class families are struggling to get ahead as living expenses and commercial childcare costs soar and incomes remain flat.

Incomes are up 2.6 percent over the past year, while home values are up over 7 percent. Housing affordability is a growing concern across the country, and in some of the most expensive housing markets, a typical mortgage payment requires 40 percent or more of the area’s median monthly income.

Commercial childcare can cost up to $21,000 a year, which only the most affluent households can afford. Some parents in families making the least may not earn enough at a full or part-time job to cover the cost of childcare, so having a stay-at-home parent often makes financial sense.

But the families in the middle, often with two working parents making moderate incomes, can’t afford to send their kids to childcare and also can’t afford for one parent to stay home.

“Housing costs and child care are among the two largest budget items for working families, costing as much $43,000 a year in urban areas and over $34,000 a year in the suburbs,” said Zillow Chief Economist Dr. Svenja Gudell. “While many Americans are tied to the places they live for a variety of personal and financial reasons, it’s necessary for some households to live near family in order to make ends meet. Sometimes an extended family might move together to provide childcare, or grandparents might even follow their children when they move to a new city to help care for their grandkids.”

About 26 percent of respondents said proximity to family drives their decision about where to live. This trend is more pronounced among low-income households in the nation’s most expensive housing markets. In San Francisco, for example, almost half of all low-income respondents said family completely impacts their decision on where to live.

Across all income brackets, 33 percent of American households with children rely on extended family for childcare assistance. Almost one-in-five households said they get help from family to cover living expenses, and 11 percent turn to extended family for help with eldercare.

Childcare

Metro

Classification

Property Taxes and Mortgage Payment (Annual)

Annual Child Care Costs (Child Care Center for 2 Kids)

Total Annual Housing and Child Care Expenses

United States

Suburban

$ 15,006

$  19,573

$ 34,579

United States

Urban

$ 22,271

$  21,381

$ 43,652

Atlanta, GA

Suburban

$ 13,569

$  17,236

$ 30,805

Atlanta, GA

Urban

$ 22,435

$  20,927

$ 43,362

Austin, TX

Suburban

$ 17,279

$  18,989

$ 36,268

Austin, TX

Urban

$ 25,661

$  22,129

$ 47,790

Baltimore, MD

Suburban

$ 15,568

$  19,493

$ 35,061

Baltimore, MD

Urban

$ 5,904

$  18,367

$ 24,271

Birmingham, AL

Suburban

$ 13,338

$  20,820

$ 34,158

Birmingham, AL

Urban

$ 16,498

$  18,356

$ 34,854

Boston, MA

Suburban

$ 24,483

$  27,078

$ 51,561

Boston, MA

Urban

$ 32,130

$  27,507

$ 59,637

Chicago, IL

Suburban

$ 28,408

$  20,386

$ 48,794

Chicago, IL

Urban

$ 45,335

$  21,931

$ 67,266

Cincinnati, OH

Suburban

$ 15,267

$  16,613

$ 31,880

Cincinnati, OH

Urban

$ 12,607

$  13,759

$ 26,366

Cleveland, OH

Suburban

$ 15,134

$  17,513

$ 32,647

Cleveland, OH

Urban

$ 7,625

$  15,988

$ 23,613

Dallas-Fort Worth, TX

Suburban

$ 14,342

$  16,373

$ 30,715

Dallas-Fort Worth, TX

Urban

$ 24,417

$  20,426

$ 44,843

Denver, CO

Suburban

$ 44,875

$  21,184

$ 66,059

Denver, CO

Urban

$ 40,564

$  21,860

$ 62,424

Houston, TX

Suburban

$ 12,584

$  15,268

$ 27,852

Houston, TX

Urban

$ 16,538

$  16,682

$ 33,220

Las Vegas, NV

Suburban

$ 15,934

$  17,711

$ 33,645

Las Vegas, NV

Urban

$ 10,481

$  15,846

$ 26,327

Los Angeles-Long Beach-Anaheim, CA

Suburban

$ 34,943

$  21,280

$ 56,223

Los Angeles-Long Beach-Anaheim, CA

Urban

$ 34,042

$  21,774

$ 55,816

Miami-Fort Lauderdale, FL

Suburban

$ 16,298

$  16,860

$ 33,158

Miami-Fort Lauderdale, FL

Urban

$ 16,437

$  18,664

$ 35,101

Milwaukee, WI

Suburban

$ 14,100

$  21,246

$ 35,346

Milwaukee, WI

Urban

$ 7,431

$  19,688

$ 27,119

Minneapolis-St Paul, MN

Suburban

$ 14,899

$  19,970

$ 34,869

Minneapolis-St Paul, MN

Urban

$ 14,710

$  24,089

$ 38,799

New Orleans, LA

Suburban

$ 25,180

$  14,165

$ 39,345

New Orleans, LA

Urban

$  23,675

$  14,834

$ 38,509

New York, NY

Suburban

$  28,668

$  23,253

$ 51,921

New York, NY

Urban

$  101,590

$  21,568

$ 123,158

Philadelphia, PA

Suburban

$  19,439

$  19,575

$ 39,014

Philadelphia, PA

Urban

$ 7,402

$  17,753

$ 25,155

Phoenix, AZ

Suburban

$ 32,097

$  17,110

$ 49,207

Phoenix, AZ

Urban

$  26,893

$  15,747

$ 42,640

Pittsburgh, PA

Suburban

$ 10,988

$  17,185

$ 28,173

Pittsburgh, PA

Urban

$ 6,916

$  16,999

$ 23,915

Portland, OR

Suburban

$ 21,909

$  19,938

$ 41,847

Portland, OR

Urban

$ 26,575

$  23,270

$ 49,845

Providence, RI

Suburban

$ 16,394

$  20,473

$ 36,867

Providence, RI

Urban

$ 12,389

$  17,504

$ 29,893

Sacramento, CA

Suburban

$ 19,555

$  18,873

$ 38,428

Sacramento, CA

Urban

$ 25,847

$  23,403

$ 49,250

San Antonio, TX

Suburban

$ 11,378

$  16,135

$ 27,513

San Antonio, TX

Urban

$ 8,126

$  16,913

$ 25,039

San Diego, CA

Suburban

$ 30,996

$  21,398

$ 52,394

San Diego, CA

Urban

$ 27,803

$  20,036

$ 47,839

San Francisco, CA

Suburban

$ 46,087

$  26,177

$ 72,264

San Francisco, CA

Urban

$ 52,730

$  32,094

$ 84,824

San Jose, CA

Suburban

$ 59,539

$  27,991

$ 87,530

San Jose, CA

Urban

$ 55,388

$  30,514

$ 85,902

Seattle, WA

Suburban

$ 21,289

$  22,003

$ 43,292

Seattle, WA

Urban

$ 28,349

$  26,319

$ 54,668

Washington, DC

Suburban

$ 21,425

$  21,660

$ 43,085

Washington, DC

Urban

$ 28,134

$  27,783

$ 55,917




Leave a Reply

Your email address will not be published. Required fields are marked *