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.
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%
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