Increasing Child Care Availability Contrasted with Rising Costs Challenges Many American Families

The Growing Paradox of Child Care in America

Overview

A recent report from Child Care Aware® of America (CCAoA) highlights a troubling trend in the child care industry across the United States. While the number of available child care centers and licensed family child care homes has risen, the associated costs have soared to unprecedented heights, pushing quality care out of reach for many families.

Child Care Supply Increase

According to the 2024 Price and Supply report, from 2023 to 2024, the number of child care centers across the nation rose by 1.6%, reaching a total of 92,613. Additionally, the supply of licensed family child care homes jumped by 4.8%, totaling 98,807. This increase represents a significant turnaround from previous trends, particularly in states like California, Kansas, Massachusetts, and Virginia, which have driven much of the growth in family child care.

However, this positive news masks a sobering reality: affordability remains a major hurdle.

Rising Prices Compared to Other Expenses

From 2020 to 2024, the average price of child care has surged by 29%, significantly outpacing the national inflation rate, which stood at 22%. Families are now facing stark choices; for married couples with children, child care expenses can consume about 10% of their median household income, and for single parents, that figure can escalate to a staggering 35%. In fact, in numerous instances, families are finding themselves paying more for child care than for their mortgage or rent payments.

In 45 states, including Washington D.C., the average annual cost for center-based care for two kids exceeds mortgage payments, in some states by up to an eye-watering 78%. Furthermore, the costs associated with child care routinely exceed median rent payments in 49 states, with certain situations reflecting disparities of 19% to over 100% between the two expenses. Alarmingly, in 41 states plus D.C., infant care in centers is more expensive than in-state university tuition.

Implications for Families and Policy Recommendations

Susan Gale Perry, the CEO of CCAoA, emphasizes that while growth in child care supply is laudable, it is inadequate compared to the severe affordability issues faced by working families. The recent financial investments aimed at bolstering supply during the pandemic have led to some increases in capacity, but a significant gap persists, especially in rural areas where options remain limited. Moreover, it has become essential to not only maintain but also enhance investments at both state and federal levels to address rising prices and bolster accessibility.

CCAoA’s report underscores the uneven distribution of child care funding and resources across different states. This discrepancy leaves many families, communities, and, indeed, entire regions in a precarious situation, jeopardizing the availability of essential service providers in child care.

To tackle these challenges, Perry calls for targeted investments focused on improving child care supply infrastructure, alongside workforce recruitment and retention strategies that can ensure high-quality options are sustained throughout the country.

Continued Advocacy for Child Care Solutions

In conclusion, as CCAoA prepares to share further insights about these findings in a webinar, the organization reiterates its commitment to advocating for effective policy solutions that cater to families seeking affordable care. This commitment aims to unify stakeholders, professionals, and families alike, ultimately striving to establish a robust child care system across America.

By working collectively towards these goals, we can transform the current challenges within the child care realm into opportunities for growth and improved access for all families.

For more on this critical topic, view the full Child Care in America 2024 Price and Supply report.