Cost of Childcare Is Now 25% More Expensive Than Rent in the US

The cost of child care has increased so much in the United States that researchers say it is now at least 25% more expensive than rent.

In a new report from the nonprofit organization Child Care Aware of America, researchers found that the national average price of child care in 2023 was $11,582. That marked a 3.7% increase from the year prior. It now accounts for 10% of the income of a married couple earning a median wage and 32% of a single parent making the median income.

For perspective, the Department of Health and Human Services said childcare costs are affordable if it does not exceed 7% of a family's income.

Average Childcare Cost in the US Now Becomes More Expensive 

Child care costs for two children were at least 25% more expensive than the average cost of renting in all 50 US states and the District of Columbia last year. In eight states and Washington D.C., however, childcare costs were more than double than housing costs.

The gap between childcare costs and housing costs was the largest in the Northeast. Childcare costs $32,614 while housing costs $27,433---a gap of $5,181. The Midwest followed with $23,803 in childcare costs and $21,907 in housing, and then the South with $22,549 in childcare costs and $21,494 in housing costs.

The cost of childcare was more affordable than rent only in the West. Childcare in the region cost an average of $26,536 while housing costs were $28,938.

READ ALSO: How To Find the Ideal Childcare for Children with Disabilities

US States Where Childcare Costs Most

Of all 50 US states analyzed, Vermont had the highest gap between childcare costs and housing costs. Childcare costs in Vermont for two children were $35,016 while the annualized rent was $13,788. That marks a 154% gap.

Here are the five states where the difference between childcare and housing costs was the largest.

Vermont

Annual Childcare Costs (Two Children): $35,016

Annual Cost of Rent: $13,788

Difference: 154.0%

Minnesota

Annual Childcare Costs (Two Children): $35,673

Annual Cost of Rent: $14,136

Difference: 152.4%

Massachusetts

Annual Childcare Costs (Two Children): $42,766

Annual Cost of Rent: $19,056

Difference: 124.4%

Rhode Island

Annual Childcare Costs (Two Children): $31,517

Annual Cost of Rent: $14,340

Difference: 119.8%

District of Columbia

Annual Childcare Costs (Two Children): $45,890

Annual Cost of Rent: $21,804

Difference: 110.5%

RELATED ARTICLE: Parents Share Strategies to Afford Childcare