As child care costs soar, many Americans today find themselves paying more for a caregiver than they do for their monthly rent, according to a new analysis.
Child care costs for parents with two kids exceed rental costs in 85 of the country’s largest metro areas, personal finance site LendingTree found. In Omaha, Neb., Milwaukee, Wis., and Buffalo, N.Y., which have the highest child care costs in the country relative to local rents, families with an infant and a 4-year-old under care on average pay more than double the cost of their rent.
Families around the U.S. pay an average of $1,282 for full-time infant care, still below the average monthly cost to rent a two-bedroom unit, LendingTree’s data shows. Families with two children, on the other hand, spend an average of $2,252 per month on child care.
LendingTree, which determined how child care costs stack up against rent in 100 cities. compiled its findings using data from nonprofit group Child Care Aware of America and the U.S. Department of Housing and Urban Development.
Exorbitant child care costs are contributing to what amounts to a crisis of affordability for many Americans, who also face rising food, housing, energy and health care costs. A survey of roughly 3,000 people released this week by Brigham Young University and Deseret News found that 7 in 10 respondents said that raising children is unaffordable, a sentiment that has surged over the last decade.
The financial strain of everyday life in the U.S., especially following the fierce inflation that erupted during the pandemic, has emerged as a political flashpoint this year.
For example, the Trump administration has in recent weeks floated several ideas aimed at easing costs for Americans, including proposals for a $2,000 tariff rebate check and a 50-year mortgage. The administration also last week announced tariff exemptions on some popular grocery store staples, including bananas, beef and coffee, as Americans continue to battle elevated food costs.
Incoming New York City Mayor Zohran Mamdani also made issues around affordability the centerpiece of his campaign, urging city officials to establish free child care for children ages 6 weeks to 5 years old.
Why are child care costs soaring?
Child care expenses have been rising steadily for years, and show little sign of relenting. From 2020 to 2024, costs rose nearly 30%, data from the nonprofit group Child Care Aware shows.
The main driver for that surge, according to experts: a shortage of early education workers and available places at daycare centers, relative to the enormous demand for such services from families around the U.S.
To that end, Schulz pointed to what she described as “child care deserts” in some regions, where parents face a dearth of acceptable options. These are most common in low-income rural areas, which have difficulty recruiting and retaining a qualified workforce, a 2023 government report found.
Where high-quality child care is in short supply, the owners can charge a premium given they face little competition, Schulz noted.
Many households also don’t have the benefit of having nearby family members who can help with child care responsibilities, Keri Rodrigues, co-founder and president of the National Parents Union, an advocacy group for American families, told CBS News.
“What we actually need are policies that recognize the modern realities of working families and what the true cost of raising children in America actually is right now,” she said.
Child Care, Inflation, Children
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