Giving Compass' Take:
- Chabeli Carrazana reports on how child care costs have skyrocketed, outpacing the costs of a mortgage, rent, and in-state college tuition in 41 states.
- What are the root causes of child care costs rising so steeply in recent years? What is the role of donors in making child care more affordable across the country?
- Learn more about key issues in child care and how you can help.
- Search our Guide to Good for nonprofits focused on child care in your area.
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Parents, you’re not imagining it: The cost of child care is rising. By a lot.
The average annual cost of care in 2024 was $13,128, a 29 percent increase since 2020 — outpacing even inflation. That’s according to an estimate from Child Care Aware, a national child care advocacy group that calculates average prices every year.
The rapid rise of child care costs is swallowing larger portions of families’ income. On average, a married couple earning the median annual income in their state is draining about 10 percent of their earnings on child care. A single parent spends 35 percent of their income on child care.
In some states, it’s a lot worse. For a married couple with an infant in center-based care, the most expensive states by share of median income are Hawaii (17.9 percent), California (16.3 percent), Maryland (15.8 percent), Oregon (15.5 percent) and Nebraska (15.1 percent). In those states, single parents earning the median income are paying about half their earnings on child care.
That means child care costs are rivaling home costs as the top line item in most family budgets. In 45 states and Washington, D.C., child care for two kids costs more than a mortgage. In 49 states and D.C., child care for two surpasses what families pay in rent.
For years, the list of states where parents are likely to pay more for an infant’s care than higher education has been growing. According to Child Care Aware, the cost of center-based infant care exceeds the cost of in-state college tuition in 41 states now. The organization uses three methodologies to arrive at its average, looking at price, supply of child care providers and the number of child care spots, pooling data from 49 states and Washington, D.C., to arrive at its annual price analysis.
“Child care prices are a sizable part of family budgets — they are by no means under control for the majority of families,” said Anne Hedgepeth, chief of policy and advocacy at Child Care Aware. “If we are going to talk about family budgets, and if we want to talk about things you could solve for family budgets: Make a dent in child care prices. You would really bring down one of those highest costs or expenses for a family.”
Read the full article about rising child care costs by Chabeli Carrazana at The 19th.