The Global Family Inflation Index 2025

The cost of raising a family has increased significantly worldwide over the past few decades, driven by economic and social factors.

While some countries have managed these increases better than others, housing, education, and childcare costs have risen worldwide.

As these financial pressures grow, many young adults are considering delaying starting a family or rethinking it altogether.

This report has explored how the cost of raising a family has changed worldwide over time and how this could change in the future.

Key findings about global family inflation

Hungary, Portugal, and Spain have seen the largest surges in family costs out of all countries analysed in this study, by 110%, 99% and 78% respectively.
Looking at childcare costs relative to local salaries, Australia has seen a staggering 112% increase, the highest globally.
2035 predictions highlight the U.S. could become the most expensive country to raise a family, despite seeing a proportionally smaller rise in costs (48%) over the past 10 years.

Countries with the highest increase in total family expenditure

To best analyse the cost of raising a family around the world, we have reviewed three key expenses that parents need to consider. For each nation, we totalled annual expenses in childcare (from the OECD), healthcare (from the World Bank), and rent (from Numbeo). For each, the cost was estimated for the most recently available ten-year period to compare how the cost of raising a family has changed. These are the countries with the most significant ten-year increases.

Chart showing which countries have seen the highest increase in total family expenditure over 10 years

Hungary

Family essentials cost 10-year increase: 110%

Hungary has seen the most significant increase in the overall cost of raising a family. It currently costs around 110% more in total expenses, including annual childcare costs, rental costs for a three-bedroom property, and healthcare expenses. Rent costs in Hungary have more than doubled, contributing massively to this increase.

If current trends continue, the cost of raising a family in Hungary could rise by a further 7.68% a year, reaching approximately $26,201 by 2035, based on a typical household of two adults and two children. Projections are however estimates and subject to change based on evolving economic factors.

Portugal

Family essentials cost 10-year increase: 99%

In second place, we have Portugal, which has seen a 99% increase in the costs of raising a family over the past ten years. When put into monetary figures, that’s an annual increase of $11,639 in expenses. While childcare costs as a % of disposable income stayed the same here, rent was the main driver, more than doubling.

The estimated cost of raising a family is set to increase by a further 7% per year, leading up to 2035, potentially taking the total expense to $46,556.

Spain

Family essentials cost 10-year increase: 78.01%

Spain ranks third, with a 78% cost increase over the last ten years. This represents an increase of $9,820 in annual expenses, which is estimated to rise by a further 6% per year up to 2035. Rent in Spain has close to doubled, while childcare costs are up by 61%.

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Countries with the biggest estimated family costs by 2035

We also looked at how the total cost for the same three categories (childcare, healthcare, and rent) would look by 2035 for the average family if they continued to increase at the same rate.

The United States, the Republic of Ireland, and Switzerland are the top three, with estimated family essential expenses in the United States predicted to hit $82,476, up 48% from 2025 levels.

Ireland follows closely at $81,165, an increase of 77%, the fastest rise of the top three. While Switzerland faces an estimated 26% increase, which would take it to $70,661 by 2035.

The countries with the biggest increase in childcare costs

Australia, Greece, and France have seen the sharpest rises in childcare costs (full-time centre-based childcare, minus any state benefits or allowances) as a share of their household income over the past decade. In Australia, childcare costs have risen by 112%, climbing by over US$4,565 in ten years and projected to hit over US$15,403 by 2035. This is by far the most significant increase among the countries analysed.

Greece ranks second, with childcare costs up by 75% and projected to reach nearly US$2,183 by 2035. Though the absolute cost is still relatively low, it’s still a significant increase in the financial burden on families.

France has experienced a 68% rise in third place, with costs increasing by $1,661. It is projected that average childcare expenses will pass US$6,100 in the next decade. While France’s increase is slightly lower than the other top two, it's still a notable upward trend.

The countries with the highest estimated childcare costs by 2035

By 2035, Australia, the United States, and Canada are projected to have the highest childcare costs globally, with Australia topping the list at an estimated $15,403. The U.S. takes second place, at $11,081, despite experiencing a slight cost decrease, down by 0.31% over the past decade. This suggests that while the U.S. remains one of the most expensive overall, the burden on families may be easing slightly as household earnings rise.

In contrast, Australia has seen a sharp increase in childcare costs, rising by $4,565 over the last ten years, making it not only the most expensive country in 2035 at $15,403, but also the country with the most significant decline in affordability.

Canada ranked third with projected costs of $6,783, with childcare costs increasing over time, rising by 0.36%. So while all these countries are at the top end of the cost spectrum, they have very different trajectories.

The countries where healthcare costs have increased the most

As part of our look at the rising cost of raising a family globally, we also analysed how much healthcare costs have grown over time, according to the World Bank, which is an essential part of any household’s budget.

Over the past decade, individuals in Lithuania, Estonia, and the Czech Republic have faced the steepest rises in personal health spending per capita, indicating rising out-of-pocket expenses or increased insurance premiums. Lithuania has seen the sharpest increase, with spending on healthcare rising by more than double (104%), followed by Estonia at 89% and the Czech Republic at 61%. These significant jumps show how the financial burden of healthcare is increasingly falling on families in these countries.

This rise could be due to inflation in the cost of providing medical services, less public funding, or a shift toward private healthcare options. This trend particularly affects low-and middle-income households, as higher costs may limit their ability to get the care they need on time.

By 2035, these countries will have the highest healthcare expenditure

By 2035, the United States, Switzerland, and Luxembourg are projected to be the top three countries with the highest healthcare expenditure per capita. The United States leads significantly, with spending expected to reach $17,029 per person, a staggering increase of $4,594 compared to current figures, a 37% rise.

Switzerland follows with an estimated spend of $12,838 per capita, a 23% rise over the last ten years, or $2,034 per person. Luxembourg ranks third at $7,897 per capita, representing a 12% increase on current costs. While their overall increases are less steep than the US's, this shows the sustained growth in healthcare costs in high-income nations, especially those with private or mixed-model healthcare.

How have rising costs impacted fertility rates, and what does the future look like?

Over the past decade, there has been a noticeable trend across many developed nations that fertility rates have declined according to data from the World Bank, while the cost of raising a family has increased.

The Republic of Ireland, Sweden, and Luxembourg experienced the most significant percentage drops in fertility rates between 2013 and 2023, falling by 28%, 26%, and 23%, respectively. Despite differing levels of economic prosperity, these countries are all seeing fewer births per woman, with Ireland projected to see just 1.23 births per woman by 2035.

While these declines in fertility often coincide with rising living costs, this is not always the case. For example, Luxembourg experienced a sharp fertility decline and a 26% increase in family essentials costs, but Sweden's cost increase was more modest, at just 14%.

On the other hand, countries like Lithuania and the United States have experienced rising fertility rates. Lithuania’s rate rose 19% over the past decade and is expected to be at 1.46 births per woman by 2035, while the US saw a 12% rise. Notably, Lithuania is one of the few countries where the cost of family essentials has decreased by 6%.

However, in some countries where fertility rates are falling or remaining flat, like Greece and Denmark, the cost of family essentials has surged by 110% and 99%, respectively. This suggests that improving affordability might help raise birth rates, though cultural, social, and policy factors also likely play significant roles.

Methodology

We sourced net childcare costs as a percentage of disposable income by country from the OECD and then calculated the 10-year differences using the same source.

We calculated a blended average of the 3-bedroom rental costs inside and outside the city centre from Numbeo.

We also calculated a blended average of the property price per square metre inside and outside the city centre from Numbeo.

Additionally, we took the estimated monthly costs for a family of four from Numbeo. This is based on a standardised basket of goods and services, reflecting typical expenses. This includes categories like groceries, dining out, transportation, clothing, and utilities.

We took the current health expenditure per capita from the World Bank. We also took the fertility rate from the World Bank.

We sourced the disposable household income per capita from the OECD.

We calculated the percentage of income spent on the combined family essentials listed above and the amount of disposable income left after these. Lastly, we applied a compound annual growth rate (CAGR) formula to estimate costs if they continue to rise at the current pace.

All data was collected in May 2025 and is correct as of that date.

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