The New Parent Real Estate Penalty: Why Starting a Family May Mean Shifting Your ZIP Code

Becoming a parent is one of life's most joyful experiences, but it’s also an expensive one.And where you live can determine just how expensive it will be.Across the country, expecting moms and dads are facing a “new parent real estate penalty,” and some may actually feel forced to relocate to somewhere that’s easier on their wallet. Mississippi, Alabama, Arkansas, Louisiana, and Iowa are five of the most affordable states for new parents, according to a recent survey by MoneyLion.Massachusetts, Alaska, New Jersey, California, and Hawaii, on the other hand, are the most expensive. And the cost differences in these states are staggering.In Mississippi, annual rent is about $12,300, the average mortgage costs roughly $13,500 a year, and infant care averages just under $6,900. In Massachusetts, however, annual rent climbs to about $31,100, infant care tops $26,700, and the average mortgage soars to nearly $47,700—a difference of more than $34,000 in annual mortgage costs alone.“It isn’t childcare that necessarily separates the states that land on the top versus the bottom. It’s housing costs,” explains Rudri Bhatt Patel, an NACCC certified financial health counselor and a member of Mon...