Child Care: Cost, Shortages and Solutions
By Child Care Aware of America
Photo courtesy of https://www.childcareaware.org/
Child Care Aware of America (CCAoA) recently published Child Care at a Standstill: Price and Landscape Analysis, an annual report assessing the national, state, and regional trends in child care.
The newest edition analyzes the supply, affordability, and price of childcare in 2023. The report also assesses factors like inflation and the lingering impact of the pandemic. Data indicates that quality childcare centers and family childcare (FCC) homes are still out of reach for many families nationwide.
Quality childcare promotes early learning and enables families to work or pursue higher education or training, which strengthens businesses and boosts the economy. Yet, lack of access and affordability continue to plague the childcare field.
The number of childcare centers has returned to pre-pandemic numbers, but the number of FCC homes has decreased since 2022. The national average price of childcare in 2023 was $11,582. This is equivalent to 10% of a married couple with children’s median household income and 32% of a single parent with children’s median household income, despite the U.S. Department of Health and Human Services setting 7% of annual income as the benchmark for affordable child care. The average American family is forced to spend a significant portion of their income on child care, or forgo income and stop working to provide child care.
CCAoA found that the average annual price of childcare in 2023 was comparable to the average annual mortgage and rent payments. In all 50 states and D.C., the price of center-based care for two children was more expensive than average annual rent payments. In 45 states and D.C., the average annual price exceeded annual mortgage payments by 1% to 64%. Overall, it was more costly to send two children to childcare centers than it was to pay for housing, demonstrating the urgent need to lower costs.
CCAoA provided multiple recommendations to improve childcare access and affordability. CCAoA urges Congress, state governments, and decision-makers across the country to:
Increase and expand sustainable funding so states can:
Provide more families with subsidies
Lower the price of childcare
Support and retain the childcare workforce
Increase access and supply
Build the supply of high-quality, affordable childcare by:
Offering grants to providers
Investing in workforce wages, benefits, and professional development
The pandemic revealed how critical childcare is for the well-being and economic security of children, families, and communities. High-quality care promotes early learning and development, while also supporting caregivers who are working, training, or pursuing an education. The data in this report provides essential insights into the childcare landscape that can allow policymakers to make more informed decisions on how to improve access to quality, affordable care.
About Childcare of America
Child Care Aware® of America (CCAoA) works with a national network of more than 500 child care resource and referral (CCR&Rs) agencies and other partners to ensure that all families have access to quality, affordable child care. CCAoA leads projects that increase the quality and availability of child care, conducts research, and advocates for child care policies that positively impact the lives of children and families. CCAoA also provides child care assistance for military families through Fee Assistance and Respite Child Care Programs that have served more than 150,000 families and worked with more than 60,000 child care providers over nearly two decades.