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Suburban Areas Prove to be More Cost Efficient on Average

In report released on Monday by Zillow and Care.com, the cost of living in metropolitan areas is coming with a premium, particularly for families with children.

On average families are spending over $9,000 a year to cover basic childcare and housing cost in the city compared to living in the suburbs.

Zillow and Care.com examined in their report three common living expenses for families—property taxes, mortgage payments, and child care costs.

Nationally, families living in metropolitan areas are spending over $43,000 a year on housing and childcare. However, in the suburbs families are only paying on average of just over $34,000.

Cities like New York, Chicago, and Dallas show the highest discrepancies between urban and suburban living, with individuals living in the city paying over $70,000 a year, or close to $6,000 more a month. However, this is not the case in other cities across the country like Baltimore and Philadelphia, where families can spend up to $14,000 more to live in the suburbs.

High property taxes and rising home prices are typically the reasons why living in the city is more expensive, but childcare can also play a role. For instance, take a city like Minneapolis where child care is averaging over $4,000 a year to live in the city, but housing cost are close to $190 cheaper.

"Deciding whether to live in the city or suburbs is a personal choice, but when you do the math, it's easy to see why moving to the suburbs is about more than just a bigger yard–it can also save you a lot of money," says Svenja Gudell, Zillow Chief Economist. "More than a third of families exceed their initial budget when buying a home, according to the Zillow Group Consumer Trends Report, so before embarking on a move, consider the cost of living beyond just the home's sticker price."

To see the full list of cities Zillow examined, click here.

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