Soaring Child Care Costs Outpace Rent Across America's Largest Metros

Despite the overall easing of inflation in the U.S., the cost of housing and raising children continues to skyrocket. A new study has revealed that the price of full-time child care for two young children now exceeds the average rent in 91 of the 100 largest metropolitan areas across the country.

Affordability Crisis Grips Families Nationwide

The Staggering Cost of Child Care

The analysis, conducted by LendingTree, examined data from Child Care Aware of America and the Bureau of Labor Statistics (BLS) to determine the average monthly cost of full-time center-based child care for an infant and a 4-year-old across the 100 largest U.S. metros. The findings were staggering – the average monthly cost of this child care is $2,182, a staggering 39.4% higher than the average monthly cost to rent a two-bedroom unit, which stands at $1,566.To break it down further, the average monthly cost for one infant alone is $1,218, which is still 22.2% more expensive than the average rent for a two-bedroom home. This disparity highlights the immense financial burden facing families with young children.

Disproportionate Burden in Certain Metros

The study revealed that in 91 of the 100 largest U.S. metros, the average monthly cost of full-time center-based care for two children exceeds the monthly rent. In nine of those major metros, child care costs are even double the rent costs.The highest child-care-to-rent ratio was found in Springfield, Massachusetts, where child care for two children costs $3,241, a staggering 135.7% more than the average rent. Syracuse and Buffalo, New York, followed closely with differences of 131.3% and 125.1%, respectively.

Rare Exceptions and Glimmers of Hope

While the majority of metros face this affordability crisis, there are a few exceptions. Child care costs for two children are less expensive than rent in only nine metros. In Miami, child care costs are 14.7% lower than rent, at $1,982 versus $2,324. San Francisco was next closest at 11.8% lower, followed by Austin, Texas, where rent was 8% lower.As LendingTree's senior economist, Jacob Channel, noted, "As inflation growth continues to cool and wages continue to climb, dealing with necessary expenses such as childcare and rent may become a bit more manageable." However, he cautioned that "high costs are unlikely to outright vanish, and difficulties related to paying these expenses are, unfortunately, likely to persist."

Calls for Comprehensive Reforms

The study's findings have sparked renewed calls for comprehensive child care and housing reforms to alleviate the financial burden on working families. Channel emphasized the need for the U.S. to push for policies that prioritize bringing down the costs of these essential services."On their own, paying for rent or childcare costs can be extremely challenging. When combined, they're even more of a hassle. Unfortunately, as both are often necessities, they're expenses that can't easily be avoided," Channel said.The affordability crisis has also had a significant impact on family planning, with many young Americans reportedly holding off on having children due to the daunting financial realities they face. As the nation grapples with these pressing issues, the call for meaningful policy interventions to support families has never been more urgent.