Here's where child care costs at least twice as much as rent

The High Cost of Childcare #

Parents with two children in childcare centers are facing increasingly high costs, often surpassing the amount they pay for rent. A recent report by Child Care Aware of America revealed that in 11 states and the District of Columbia, parents paid at least twice as much for childcare as they did for rent. The states affected include Illinois, Indiana, Iowa, Kansas, Massachusetts, Minnesota, Nebraska, Pennsylvania, Rhode Island, Vermont, and Wisconsin.

The report focused on the cost of care for an infant and a 4-year-old. It found that in every state in the US, the cost of placing two children in a childcare center was at least 25% higher than the average rent. Furthermore, in 45 states and the District of Columbia, childcare costs exceeded the annual mortgage payments. The average annual cost of childcare per child across the nation was $11,582, representing a 3.7% increase from the previous year.

Despite a slight stabilization in costs since the COVID-19 pandemic, childcare continues to be a significant financial burden for many parents. Factors such as increased prices and closures of childcare centers due to the pandemic have contributed to this ongoing struggle. The report also highlighted that the cost of childcare varies widely by state and locality.

Although the number of licensed childcare centers increased slightly in 2021, it is still not enough to meet the demand. The number of licensed home-based childcare providers has declined, making the situation even more challenging. The closure of federal pandemic stabilization grants and impending expiration of federal pandemic infusion for childcare and development block grants could further worsen the situation, potentially resulting in tens of thousands of closures. While some states are investing in their childcare systems, it is difficult to match the scale of relief funding that was previously available.