Southern California renters with young children are facing some of the toughest financial challenges in the nation, according to new data that highlights the rising burden of housing and childcare costs.
While the cost of living continues to climb across the U.S., families in three SoCal cities — Los Angeles, San Diego, and Anaheim — are among those hit hardest when it comes to affording both rent and childcare, two of the biggest expenses for households with young children.
Childcare Costs Now Rival or Exceed Rent for Many Families
Childcare expenses have skyrocketed over the past few decades, surging 263% since 1990, nearly double the overall rate of inflation. In some cases, the cost of full-time childcare exceeds what families pay for rent, mortgage payments, or even college tuition.
For renters in SoCal cities, the situation is even more daunting. Housing costs have soared 21% since before the pandemic, and experts warn prices may rise further as new construction slows and economic pressures, such as tariffs, take effect.
The U.S. Department of Health and Human Services considers childcare unaffordable if it exceeds 7% of a household’s income, yet typical families are now spending 9% to 16% of their income on care for just one child. In many California cities, that percentage is significantly higher.
The 3 Most Expensive SoCal Cities for Renters Needing Childcare
According to real estate platform Redfin, Los Angeles, San Diego, and Anaheim rank among the nation’s priciest cities for combined childcare and rent costs:
| City | Share of Income Spent on Rent + Childcare | Avg. Monthly Rent + Childcare Costs | Median Monthly Household Income |
|---|---|---|---|
| Los Angeles | 36.1% | $3,870 ($1,610 childcare + $2,260 rent) | $10,719 |
| San Diego | 35.8% | $3,940 ($1,650 childcare + $2,290 rent) | $10,995 |
| Anaheim | 35.4% | $3,530 ($1,450 childcare + $2,080 rent) | $9,968 |
For families in these cities, balancing housing and childcare costs often means sacrificing other necessities or struggling to make ends meet.
The Bigger Picture: Fewer Children, More Financial Strain
The high cost of raising a child is contributing to a nationwide trend of declining birth rates. A leading reason cited by Americans for having fewer or no children is the inability to afford childcare. In fact, 40% of families report struggling to find an affordable childcare option, and 88% of eligible children do not receive government aid due to limited funding and long waitlists.
California’s childcare crisis is especially severe. Statewide, nearly 95,000 families sit on months-long waitlists for childcare subsidies. A recent report estimates the state loses more than $9 billion annually due to parents leaving the workforce or cutting back hours to care for their children.
Advocates Call for Policy Solutions
As families grapple with rising costs, experts and advocates are calling for more robust government support to ease the burden. Programs like California’s CalWORKs Child Care Program and local initiatives in cities like Los Angeles aim to assist low-income families, but demand far outweighs available resources.
Many argue that without significant investment in affordable childcare and housing, working families — particularly renters — will continue to face impossible financial choices.
“Childcare is infrastructure,” said one local advocate. “If parents can’t afford care, they can’t work. It’s that simple.”
With housing and childcare costs both at record highs, renters in Southern California are left wondering when — or if — relief will come.
