As Christmas classics like “Home Alone” return to screens celebrating its 35th anniversary, a new analysis from InvestorsObserver reveals that many American families with multiple children could no longer afford the McCallisters’ lifestyle of five kids.
Today, they face $165K yearly costs in Chicago alone, $32K short on average nationwide. These costs only cover basic needs: food, child care, medical expenses.
“McCallisters were not a regular family, and the life portrayed in “Home Alone” is far from affordable for most Americans. With five children and all the potential expenses, they are more likely to be closer to the 1% wealth category, rather than the average family, which would fall in hundreds of thousands of debt in their case,” says Sam Bourgi, senior analyst at InvestorsObserver.
Raising a Child in Chicago Costs Nearly $165K
No surprise the burglars targeted McCallister's house in a wealthy neighborhood. They lived in a Chicago suburb, where the basic cost for one child today reaches around $32,978 annually, whereas in 1990, when the movie was released, it was around $6,700–$8,300 per year.
Raising five children in Chicago would cost parents approximately $164,890 today, compared to $33,500–41,500 needed 35 years ago.
This is far beyond what an average married couple could afford: at Chicago's median income of $129,000, they'd face a $36,000 annual deficit covering just the basics for five children.
The house the McCallisters currently live in is worth over $5 million, with a more than 200% increase in the last 10 years. According to DSLD Mortgage, for most buyers, purchasing a $400,000 home is one of the largest financial commitments they will make in their lifetime.
Metros Where Almost Only the Top 1% Can Afford to Raise Their Children
The InvestorsObserver team, building on their prior research into single-child costs, calculated that the McCallisters would face the steepest child-rearing expenses in these metros: $230,530 yearly for five children in Boston, $225,285 in San Francisco, and $215,640 in San Jose.
Nationwide, the average family falls $32,000 short each year raising five kids across 49 metros, when basic costs are compared to median married-couple income.
However, the average income of the so-called 1% comes closer to what the McCalisters could afford: even in the most expensive metro areas, making close to a million dollars would leave them with an additional income of over $700,000.
“The movie we all love shows a life that the larger part of families could only dream of. The reality is that some struggle with food, some with healthcare, and some with mortgages. That especially can happen in the expensive metro areas, where even with dual income, families struggle to cover basic necessities,” says Bourgi.
Even the most affordable U.S. metro areas for raising five "Home Alone" kids remain out of reach for median married couples. McAllen leads with $127,315 in annual basic costs (food, childcare, medical), followed closely by Richmond ($127,820) and Columbus ($127,930).
Yet, gaps persist: McAllen’s -$54,615 shortfall is the steepest among lows, Richmond’s +$4,960 tiny surplus is rare, and Columbus -$16,706 is still burdensome. These Southern and Midwestern metros offer relative relief through lower living expenses, but no average household covers the tab without strain.
Hidden Costs Also Add Up
“What most of us forget is that there can be a bunch of hidden costs for raising children. Think about birthdays, toys, and all the maybe not-so-necessary things to buy, but that make the child’s life better. Parents make ends meet just to afford that, let alone holidays,” says Bourgi.
Extras like music lessons or birthday parties only widen the gap – beyond basics alone, no median U.S. couple affords the McCallisters’ five kids and Christmas vacation. “Home Alone” glamorizes an elite lifestyle: only the top 1% incomes (~$900K+) make it a reality today.
Methodology
Data was taken from InvestorsObservers’ research The most and least affordable metros to raise children. From that data, the cost of raising five children was calculated by comparing the cost of raising one child, covering only basic needs, to the median income of a married-couple household.
The dataset depicts each metro area, while the key findings highlight the metro areas with the highest and lowest costs of raising five children, as well as Chicago, where the movie “Home Alone” is set.
Basic costs of raising a child include food, child care, and medical expenses.
The deficits were calculated by subtracting the cost of raising five children from the annual median income of married couples.
In addition to InvestorsObserver’s previous research, and five-child cost calculations, the analyst included SmartAsset’s top 1% income findings. SmartAsset calculated top 1% income thresholds for each U.S. state using 2023 IRS tax data, adjusted to 2025 dollars. This analysis applied those state-level top 1% salaries to their respective metro areas.
The cost of the house shown in the movie was based on the data provided on Zillow.
The cost of raising children in 1990 was obtained from Newsbreak.
ABOUT SAM BOURGI
Sam Bourgi is a finance analyst and researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, and monetary policy. His professional background spans the private, nonprofit, and public sectors, where he has held positions such as senior policy adviser, labor market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organizations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes. Sam regularly appears on TV, including CBN, KFYR TV, 11Alive, and ABC30, and is often quoted by such media outlets as the SF Chronicle and MSN.
ABOUT INVESTORS OBSERVER
InvestorsObserver is a trusted source of independent financial analysis, market insights, and investment research for individuals and institutions. Founded to empower retail investors with actionable intelligence, InvestorsObserver delivers timely commentary, data-driven studies, and accessible financial tools designed to simplify complex market trends. Its research and insights have been featured by various media outlets, including Yahoo, The Guardian, Morning Star, Nasdaq, and more.
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