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As living costs rise all over, a new 2025 study shows big gaps in kid-raising costs across major U.S. metro areas. Based on recent data from SmartAsset shown by CBS News and WROR, some places pay almost twice what others do each year on childcare, homes, food, and health care.
Raising a kid in the U.S. now costs about $26,000 a year, but this varies a lot by place. Cities in the South and Midwest are the cheapest, while coastal cities cost the most for families.
Ranking Cheapest Metro Areas 2025 and Cost Change from 2024
At the top of the cheap list is Birmingham, Alabama, where the yearly cost to raise a kid has fallen to $19,082-down 8.1% from last year. Other Southern cities like Memphis, Tennessee, and San Antonio, are also in the top five, with much lower childcare and home costs.
- Birmingham, AL $19,082 -8.1%
- Memphis, TN $19,264 +3.1%
- Nashville-Davidson-Murfreesboro, TN $20,787 +1.8%
- Atlanta-Sandy Springs-Roswell, GA $20,821 -5.8%
- San Antonio-New Braunfels, TX $20,945 -0.3%
These cities have lower daily costs and draw families looking for cheaper places in uncertain times.
Ranking Most Expensive Metro Areas 2025 and Cost Change from 2024
On the other end, Boston, Massachusetts is the priciest metro to raise a kid in 2025, with costs hitting $39,221 a year-up 3.9% from 2024. WROR notes that just childcare in the Boston area is about $23,800 of that yearly cost, with homes, food, and health care adding a lot to the total.
Boston's high costs show wider trends in the Northeast and West Coast, where tight urban areas and few childcare spots push up prices.
- Boston, MA $39,221 3.9%
- San Francisco, CA $38,981 9.4%
- San Jose, CA $37,867 10.0%
- Seattle, WA $34,448 11.9%
- Hartford, CT $33,149 3.2%
Childcare and housing costs drive this Bay Area metro to second place. Costs rose over 9% from 2024, making it one of the most expensive places for families. Silicon Valley families now spend nearly $38,000 a year raising a child, up 10% from last year.
High-tech salaries often offset, but costs remain steep. With a nearly 12% jump from 2024, Seattle's rising population and living expenses have pushed child-rearing costs to over $34,000 annually. Hartford saw a smaller increase of 3.2%, but still ranks among the top due to high costs in childcare and education.
A rising number year by year
For families planning ahead, these numbers show how much place matters in money planning. A $10,000 to $20,000 yearly difference in kid costs could change choices about homes, jobs, and saving for the future.
With kid costs likely to keep rising nationwide, knowing where your money stretches furthest can help in reaching money stability.
If saving money matters, Southern metro areas like Birmingham and Memphis are good picks for families, while Boston shows the high costs linked with raising kids in big coastal cities.