Answer:
The best logical transition option is "Consequently," or option "A." Many of the new families in the neighborhood have small children. Consequently, demands on the local daycare center have been increasing.
Explanation:
Transitions help to orient the reader and help you to express how ideas are related to each other in your writing. Transitions like however, although, and consequently show the connections between your sentences and the ideas you are trying to convey. While it is a mistake to overuse transitions, when used correctly they can help prevent confusion for the reader by preventing sudden leaps in your descriptions and explanations.