Raising a child in the United States comes with significant financial demands. From childcare and food to medical expenses and housing, the total annual cost can reach tens of thousands of dollars, depending on the location. In certain metro areas, those costs can approach $40,000 per year.
Between 2024 and 2025, projected annual costs shifted substantially, with changes ranging from a 15% decrease to a 22% increase across major metro areas. To measure these differences, SmartAsset ranked 48 metropolitan regions based on the average estimated annual cost of raising a small child in a household with two working adults. The study also analyzed year-over-year cost changes.
Key Findings from the 2025 Study
- Boston, MA, remains the most expensive metro.
The annual cost of raising a child in the Boston area reached $39,221 in 2025, maintaining its position as the highest nationwide. This figure reflects a 3.87% increase from 2024. Childcare represents the largest share of this expense, estimated at $23,800 annually. - St. Louis, MO, records a steep increase.
Families in St. Louis saw costs rise by more than 20% year-over-year, moving the metro from 46th place to 27th in the rankings. The estimated cost of raising a child increased from $19,858 in 2024 to $24,317 in 2025, largely due to higher childcare expenses. - Birmingham, AL, becomes the least expensive metro.
With a decline of just over 8%, Birmingham now holds the lowest projected costs among the studied metros. The average annual expense is $19,082, edging out Memphis, TN, which remains comparatively low at $19,264 per year. - Washington, D.C., sees the largest relative drop.
The D.C. metro area experienced a 15% decrease, moving from the third most expensive in 2024 to 13th in 2025. The annual cost dropped from $35,554 to $30,157, marking the largest percentage decline in the study.
Takeaway
The 2025 SmartAsset analysis highlights sharp contrasts in the financial demands of raising a child across U.S. metropolitan areas. While Boston continues to top the list of most expensive cities, places like Birmingham remain significantly more affordable. Meanwhile, dramatic shifts — such as the increase in St. Louis and the decrease in Washington, D.C. — demonstrate how quickly child-rearing costs can change within just one year.
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