Can You Raise A Family Here? Here's What It Takes To Live Comfortably In America's Costliest States

The number of homebuyers with children has plummeted to historic lows, with only 27% of recent buyers having children under 18, according to data from the National Association of Realtors cited by Realtor.com.

It marks a dramatic decline from 58% in 1985.

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Massachusetts is among the most expensive states for families, requiring a combined household income of $301,184 for a family of four to live comfortably. With median home prices at $769,500, the state is a benchmark for the financial hurdles facing young families in premium markets.

“With rising home prices, people might be waiting longer to buy a home and might be waiting longer to have children too,” Brandi Snowden, director of member and consumer survey research at NAR, was quoted in the Realtor report.

The financial strain extends beyond housing costs. The estimated expense of raising two children through age 17, including public college education, reaches $832,200. According to LendingTree research cited by Realtor, monthly child care alone averages $2,182 for two children in center-based care.

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Los Angeles real estate executive Jameson Tyler Drew has seen the impact firsthand. “I’ve lost dozens of deals over the last few years because clients were slowly priced out of the market,” Drew noted. “Worse still, I’ve sold houses to former buyers who suddenly realized they could no longer afford to live in our city because they just had a child and cannot afford child care.”

The cost burden varies widely by region. While Hawaii demands $294,612 in annual income for a family of four, Mississippi requires $177,798. The disparity has sparked migration patterns, with families increasingly relocating to more affordable states.

Despite its $759,500 median home price, California ranks fifth on the expense list, requiring $276,724 in annual household income. The state’s housing market particularly affects young families, with many fleeing to Midwest states for financial relief.

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The data reflects broader economic pressures on family formation. “Many parents who are not homeowners are renting,” said Samantha Sousa, a California real estate broker. “The rent payment is higher than the average mortgage, but they’re not able to save up for closing costs in order to purchase a home. On top of that, they’re unable to afford groceries, medical care and child care.”

The financial squeeze has transformed home-buying patterns, with many families delaying purchases or seeking alternative locations. The trend suggests a fundamental shift in American homeownership as the traditional model of family home-buying becomes increasingly challenging in high-cost markets.

Here is the entire list, according to the report: 

Most Expensive States:

1. Massachusetts

• Median home price: $769,500
• Required family income: $301,184

2. Hawaii

• Median home price: $798,500
• Required family income: $294,612

3. Connecticut

• Median home price: $499,994
• Required family income: $279,885

4. New York

• Median home price: $649,775
• Required family income: $278,970

5. California

• Median home price: $759,500
• Required family income: $276,724

6. Colorado

• Median home price: $595,000
• Required family income: $264,992

7. Washington

• Median home price: $644,450
• Required family income: $257,420

8. Oregon

• Median home price: $569,950
• Required family income: $257,338

9. New Jersey

• Median home price: $574,500
• Required family income: $251,180

10. Rhode Island

• Median home price: $549,950
• Required family income: $249,268

Least Expensive States:

1. Mississippi

• Median home price: $294,950
• Required family income: $177,798

2. Arkansas

• Median home price: $296,854
• Required family income: $180,794

3. West Virginia

• Median home price: $245,000
• Required family income: $189,364

4. Louisiana

• Median home price: $276,438
• Required family income: $189,612

5. Kentucky

• Median home price: $299,950
• Required family income: $190,112

6. South Dakota

• Median home price: $372,500
• Required family income: $192,608

7. Alabama

• Median home price: $329,200
• Required family income: $193,606

8. Oklahoma

• Median home price: $295,000
• Required family income: $194,106

9. Tennessee

• Median home price: $427,450
• Required family income: $195,770

10. Kansas

• Median home price: $295,475
• Required family income: $196,768

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