Households With a New Baby Gravitate to Less Costly Markets

Homebuying households with a newborn baby are moving into housing markets that are less expensive than where they were living before, according to a new data analysis from Zillow.

 

On average, households with a newborn have relocated to areas where homes cost $11,500 less than where they moved from. In pricier markets, the differences are significant: Los Angeles-based households with a newborn settled in places where median home values were $165,800 lower than where they came from, while in San Francisco the home values were $129,000 lower. But not every market fell into that pattern, most notably in Seattle where households with a newborn moved into areas where the average home price was $34,300 more than their old location.

 

“Having a baby dramatically changes your life and can radically change your idea of the ideal home,” said Skylar Olsen, Zillow's Director of Economic Research and Outreach. “Maybe you need more space both indoors or out, maybe you need to save somewhere, anywhere, to make up for the additional cost of childcare. Our analysis shows that whatever the motivation, many families are making parenthood financially easier by moving to more affordable markets. Moving can be a stressful process, especially for new parents, but the benefits of their new home—financial or otherwise—may well outweigh that stress.”

---