Raising kids in Houston is surprisingly affordable, study finds

For those considering starting a family, it’s always important to consider how much money it costs to raise a child. These costs aren’t any cheaper, especially in a region that includes Houston, The Woodlands and Sugar Land, where the annual costs of raising a single child can add up to more than $21,000 each year.

That’s according to a new annual report from SmartAsset that examined child care costs in 50 of America’s largest metropolitan areas.

Despite the seemingly high annual price tag, raising a child in Houston is actually much more affordable than in most other U.S. metropolises. The city was ranked 13th on the list of lowest annual child-rearing costs among the 50 cities in the report.

Here’s how the study breaks down the annual cost of raising a child in Houston:

• $10,006 for childcare
• $2,623 for additional accommodation

Houston parents can rejoice that their annual child care costs are lower than the national average of $25,181 per year. Boston-Cambridge-Newton, Massachusetts, is the U.S. metropolitan area with the highest annual costs of raising a child – at $37,758 – much higher than the national average.

“Understanding the costs associated with raising a child is essential, not only for personal financial planning, but also for developing public policies that support family well-being,” the report’s author writes. “But the costs of child care, additional housing, food, medical necessities and other expenses vary widely, with the total price adding up much higher in some places.”

Child care costs in Texas
Unsurprisingly, Austin-Round Rock-Georgetown is the most expensive metro area in Texas to raise a child, with annual costs totaling $22,406. The report does not explain in depth how it arrived at this amount, but it does say that child care costs amount to $10,247 per year, of which $3,485 is spent on “additional housing.”

Annual child care costs in Dallas-Fort Worth-Arlington were $21,926, and child care costs in San Antonio-New Braunfels were slightly cheaper, at $21,014 per year.

To determine the ranking, SmartAsset compared the annual costs of a household with two working adults and one child to the annual costs of a childless household with two working adults. MIT’s Living Wage Calculator was used to determine the cost of each city’s medical bills, transportation, food and more. Notably, tuition costs have not been specified.