Childcare costs are growing faster than rent in the U.S.
Summary
Childcare costs in the U.S. are rising faster than rent and medical care, putting more financial strain on families. Many families now spend over $2,000 monthly on childcare, which is considered unaffordable under federal guidelines.Key Facts
- Nearly 8% of U.S. families pay more than $2,000 per month for childcare.
- Childcare expenses increased faster than rent and healthcare from last year to September.
- On average, families spend 8% of their monthly income on childcare, above the affordable level of 7%.
- A family spending $24,000 yearly on childcare would need an income of about $343,000 to keep costs affordable.
- Lower- and middle-income families spend nearly 9% of their income on childcare, while higher-income families spend about 7.3%.
- Wage growth is slowing, making the rising childcare costs harder for families to afford.
- Childcare costs are rising fastest in Nashville, Jacksonville, and Phoenix, partly due to more people moving there and fewer childcare workers.
- Shortages of childcare workers led to a 0.7% drop in childcare employment in one year, raising prices and reducing availability.
- Women are more affected since they are more likely to provide childcare and face limits on work opportunities if childcare is unaffordable.
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