The economics of raising a family vary wildly across the US; Which state comes out top?

Achieving the American Dream with the best conditions for raising a family is far from standardized nationwide.

A new study ranks all 50 states to determine which provide the most supportive conditions for families across 50 indicators covering economic stability, education, healthcare, safety, childcare availability and overall affordability. The report highlights the growing financial burden associated with raising children and how no single state tops the financial rankings across various criteria.

The WalletHub analysis evaluated metrics including median family income, housing affordability, healthcare quality, crime rates, school performance and job security. Each state received a weighted score across five categories: Family Fun, Health & Safety, Education & Child Care, Affordability and Socio-economics.

“Raising a family has become significantly more expensive in recent years as the cost of living has risen quickly,” noted analyst Chip Lupo. “In fact, it can cost a family as much as $320,000 to raise a child to age 18, according to statistics from the US Department of Agriculture. In light of the expensive nature of being a parent and the responsibility it entails, it’s important to live in a city that is affordable while still providing quality healthcare, education, safety and opportunities for enrichment.”

Massachusetts secured the top ranking overall, earning high marks for job security, low poverty and leading education outcomes. The state ranks first in public school quality and reports high rates of children with health insurance, low infant mortality and low property crime. Although housing and childcare costs are higher than in most states, incomes help balance those expenses.

Minnesota placed second, supported by the nation’s second-highest median family income after adjusting for cost of living. The state also has one of the lowest poverty rates for families and a relatively small wealth gap between top and bottom earners. Minnesota performs strongly in health measures, including life expectancy and public hospital quality, and reports a low separation and divorce rate.

North Dakota claimed third place, standing out for housing affordability. Average rent for a two-bedroom apartment accounts for just 11.8% of median income, the lowest share in the country. Home prices are also among the most affordable relative to family income. The state benefits from low unemployment, low family poverty and extensive childcare availability, including high daycare quality and a strong supply of providers.

Wisconsin and Nebraska round out the top five, both performing well in education, safety and socio-economic stability while maintaining moderate affordability.

At the bottom of the rankings, New Mexico placed last overall. West Virginia and Mississippi followed closely behind, reflecting weaker education outcomes, lower family income levels and reduced access to healthcare. Nevada, Louisiana and Alabama also ranked near the bottom, struggling with affordability, safety and school performance challenges.

WalletHub calculated scores by grading each metric on a 100-point scale and applying weighted averages to determine final rankings. Data was drawn from federal agencies, national research organizations and independent databases.