Affordable Childcare Remains a Barrier: Solutions in New Report

While America’s childcare supply grew nationally, the price of that care continues to rise — placing affordable, high-quality care out of reach for many families. A new report released by Child Care Aware® of America (CCAoA), Child Care in America: 2024 Price & Supply, shows that despite promising signs of increased supply, affordability remains a major barrier — and underscores the need for increased sustained federal and state investment.

From 2023 to 2024, the number of childcare centers increased by 1.6% (to 92,613) and the supply of licensed family childcare (FCC) homes increased by 4.8% (to 98,807). The national growth in FCC homes’ supply is driven largely by four states (CA, KS, MA, VA) and is especially notable as it reverses a year-long downward trend.

At the same time, the national average price for childcare rose by 29% from 2020 to 2024, outpacing inflation and exceeding other major family household expenses like rent or mortgage payments in many states. Childcare is now so expensive that it consumes 10% of a married-couple-with-children’s median household income and a staggering 35% for a single parent. In most states, families pay more for childcare than rent, mortgage payments or in-state university tuition.

“Childcare supply is increasing, and that is a win, but it’s not enough,” said Susan Gale Perry, CCAoA chief executive officer. “Recent federal and state pandemic-era investments have stabilized and grown supply in some places, but a significant supply gap still exists — especially in rural communities and for infants and toddlers. We also still haven’t put a dent in affordability for working families. That’s why we urgently need increased funding and new solutions.”

CCAoA’s Childcare in America: 2024 Price & Supply report also found that:

• The average price of childcare increased by 29% from 2020 to 2024, outpacing the national inflation rate of 22%.
• In 45 states plus Washington, DC, the average annual price of center-based childcare for two children exceeded mortgage payments, in some states by up to 78%.
• In 49 states plus Washington, DC, the price of center-based childcare for two children exceeded median rent payments ranging from 19% to over 100%.
• In 41 states plus Washington, DC, infant care in a center cost more than in-state university tuition.

CCAoA urges policymakers to increase childcare funding at both state and federal levels to maintain the momentum of growing supply, address rising prices and expand access to childcare for families. Federal funding increases have fallen short of the need, and its research shows that total state investments in child care or preschool vary widely from state to state, putting children, families and communities across America on an uneven playing field. Further, targeted investments in childcare supply building and stabilization and childcare workforce recruitment and retention strategies are essential to help sustain an adequate supply of high-quality childcare options nationwide.

CCAoA is the only national organization that supports every part of the childcare system. Together with an on-the-ground network of people doing the work in states and communities, it provides research that drives effective practice and policy, building strong child care programs and professionals. It helps families find and afford quality child care, delivers thought leadership to the military and direct service to its families, and provides a real-world understanding of what works and what doesn’t to spur policymakers into action and help them build solutions.

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