Raising Costs of Parenthood in Pennsylvania: Challenges and Insights
Recent assessments indicate that raising a child in Pennsylvania now incurs an annual expense of approximately $32,000. This figure covers essential expenses such as housing, food, transportation, healthcare, child care, and other basic needs, excluding college costs and potential inflation impacts. While not as high as states like Massachusetts or Connecticut, where expenses exceed $40,000 annually, Pennsylvania's costs are notably higher than many Midwestern and Southern regions, where costs range from $21,000 to $24,000.
The issue becomes more pronounced when examining wage growth, especially outside major metropolitan areas in Pennsylvania. The state's economic structure, which combines Northeast-level expenses with Rust Belt-level wage increases, creates a financial gap that can lead to strain. Traditionally, consistent employment, homeownership, and family-raising guaranteed stability, but current economic conditions challenge this belief, with financial pressure leading many families to reconsider decisions such as having more children due to budgetary concerns.
Housing costs have notably increased, with the median home price reaching $306,000—up 36% from five years ago. This rise, compounded by climbing property taxes, places pressure on household finances. Renters are also affected, with two-bedroom apartments often classified as luxury units in various markets. Child care expenses are another major concern, with average annual costs reaching $27,500, equating to a mortgage-like financial burden. Despite potential salary increments, these costs often negate financial gains for families.
Healthcare expenses add to this financial strain, with Silver Obamacare Plan premiums exceeding $20,000 annually. Consequently, 85,000 individuals have discontinued their Obamacare coverage, while another 33,000 opted for reduced coverage due to costs. Rising premiums, deductibles, and routine medical expenses incrementally contribute to the financial challenges faced by families.
These ongoing cost increases do not necessarily lead to despair but foster a sense of resignation among parents. They may feel unsupported by systemic structures, and political sentiment often reflects skepticism, as public leaders emphasize "affordability" that may not resonate with families' actual economic experiences. This new economic reality can lead families to lower expectations and avoid financial risks, potentially creating broader economic challenges.
Addressing these issues requires a focus on tangible factors such as increasing housing supply, making child care more accessible, and adjusting healthcare pricing. It also calls for a reassessment of tax policies that may hinder economic growth. Sustainable solutions are needed to ensure that Pennsylvania maintains its reputation as a family-friendly state, aligning financial realities with its historical desirability as a place for raising children. Athan Koutsiouroumbas, managing director at Long Nyquist and Associates and former congressional chief of staff, provides these insights.