(1) Childcare costs vary widely across the United States
In 2018, the median annual cost of childcare for one child – expressed in 2022 dollars – ranged from $5,357 to $17,171, according to the most recent estimates available from the U.S. Department of Labor. But these numbers differed significantly depending on various factors, including whether the program is:
Home-based, caring for a small group of children of various ages in a residential setting; or center-based, typically supervising a larger number of children grouped by age in a non-residential setting.
Center-based programs are often more expensive, especially for younger children. And costs are higher in more densely populated areas of the country. For example, the median annual cost of childcare for infants under 2 years old in center-based programs in 2018 ranged from $8,310 in counties with fewer than 100,000 residents to $17,171 in counties with populations of 1 million or more. (These costs are again expressed in 2022 dollars.)
(2) Many families spend a considerable portion of their income on childcare
According to the Department of Labor, the median cost per child for paid childcare in 2018 was 8.0% to 19.3% of the median family income in that county, depending on the child’s age, the type of childcare program, and the size of the county.
The most expensive form of childcare in 2018 was for infants in center-based programs. The median cost per child of these programs in small counties was 12.3% of the median family income in those areas that year. The share rose to 13.9% in medium-sized counties, 15.7% in large counties, and 19.3% in very large counties with 1 million people or more.
(3) Some forms of childcare have become considerably more expensive since the onset of the coronavirus pandemic
Between January 2020 and September 2024, the price of daycare and preschools rose by about 22%, according to data from the Consumer Price Index for All Urban Consumers (CPI-U) from the Bureau of Labor Statistics. And it increased by 6% just since September 2023.
(4) For some parents, childcare costs can be a source of financial stress
Two in ten parents who say they need childcare reported in a survey by the Center in the fall of 2022 that there were times in the previous 12 months when they did not have enough money to pay for it. Parents with lower incomes (38%) were especially likely to report difficulties affording childcare that year.
(5) Most Americans say providing free childcare would encourage more people to have children
The U.S. fertility rate reached a historic low in 2023, and Americans are much more likely to perceive negative than positive effects of fewer people having children in the future, according to a survey by the Center in the spring of 2024. In this context, 60% of U.S. adults say that the federal government providing free childcare would be extremely or very effective in encouraging more people to have children in the future.
A separate survey by the Center in the spring of 2024 found that general concerns about affordability play a role in younger Americans’ decisions about having children. Among adults under 50 who do not have children and say they are unlikely to ever have any, 36% say a main reason is that they cannot afford it. Another 24% say this is a lesser reason for not having children.
Source: Pew Research Center