Minnesota Childcare Costs Blamed For Gen Z Family Delays

Kids are expensive.

Every generation agrees the cost of raising kids is a big consideration on whether to have a family -- and if so -- how big.

How expensive? Depends who you ask.

The United States Department of Agriculture says in 2015, a typical middle-income family was spending just under $13,000 per year to raise a child.

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That's over a quarter-million dollars for birth to adult costs per kid.

And in a story in Business Insider in May 2025, Minnesota ranked #10 in the Most Expensive State to raise a child. They pegged the estimated annual cost at $27,406 for a total cost to raise a child from birth to 17 years at $493,308.

The story cites high childcare and healthcare costs, housing prices and strong participation in extracurriculars and sports.

Generation Z has been paying attention.

The generation -- typically defined as those born between 1997 and 2012 -- is delaying having kids for a variety of reasons.

One of the big reasons Gen Zers attribute to their decision-making is the cost of childcare.

New Jersey Real Estate Network commissioned a national study to explore the data.

The study looked at data from the National Database of Childcare Prices and Bureau of Labor Statistics for 2023 to see which states are especially hard-hit by child care costs.

The study found Minnesota #5 on the list of most expensive states for childcare costs relative to income.

Meanwhile, Wisconsin ranked #7.

In Minnesota where the median annual income in 2023 was $50,880 -- and with the average centre-based childcare price at $14,435 per year -- Minnesota families spend 28.37% of their income on average for childcare.

Let that sink in for a moment -- 28.37% in Minnesota.

Just. For. Childcare.

It's not much better in neighboring Wisconsin -- #7 on the list -- where annual daycare center costs in 2023 averaged $12,990, median income was $47,590 and Wisconsinites on average paid 27.3% of their income on childcare.

Putting the costs of raising a kid in Minnesota in perspective.

The debt-to-income ratio most lenders want to see for getting a home mortgage is 36% or less. And Bankrate says approval with a ratio above 50% is tough.

If 28% of your debt is in childcare costs alone, that doesn't allow many other expenses in order to get a mortgage.

Gen Zs are very money conscious. In fact, the Deloitte Global 2022 Gen Z and Millenial Survey found the cost of living was consistently cited as their top concern.

So it's no wonder Gen Zs -- who are generationally more focused on money and the cost of things -- are putting off starting families.

They can't afford them.

After all, kids are expensive.