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Despite the overall pace of inflation easing year over year in the U.S., the price of housing and raising kids continues to soar – and child care costs now exceed rent in many parts of the country.
A new study from LendingTree found the cost of sending two young children to full-time daycare is now 40% more expensive than the average rent across the nation’s 100 largest metros.
Children from a daycare hold onto a cord as they walk outside in New York City to ensure they stay together with their group and supervisor. Child care for two kids now exceeds rent in 91 of the 100 largest metros in the U.S., according to a new anal (Deb Cohn-Orbach/UCG/Universal Images Group via Getty Images / Getty Images)
The analysis of Child Care Aware of America and Bureau of Labor Statistics (BLS) data determined that 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 is $2,182 – 39.4% higher than the average monthly cost to rent a two-bedroom unit, which is $1,566.
To break it down, the average monthly child care cost for one infant is $1,218, which is just 22.2% less expensive than renting a two-bedroom place.
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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, LendingTree found. In nine of those major metros, child care costs are double rent costs.
A residential apartment building in the Long Island City neighborhood of New York, US, on Wednesday, July 17, 2024. The cost of sending two young children to full-time child care is now 40% higher than rent across America’s 100 largest metros. (Photographer: Yuki Iwamura/Bloomberg via Getty Images / Getty Images)
“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,” LendingTree’s senior economist, Jacob Channel, told FOX Business.
The economist called for the U.S. as a nation to push for comprehensive childcare and housing reforms that emphasize bringing costs down for working families.
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Channel added, “In the face of both high housing and childcare costs, it’s no wonder why so many young Americans are holding off on having kids.”
The highest child-care-to-rent ratio is Springfield, Massachusetts, where child care for two children costs $3,241, which is 135.7% more than rent, according to the study. Syracuse and Buffalo, New York, have the next-highest differences at 131.3% and 125.1%, respectively.
An overwhelming majority of current renters say they can’t afford to buy a home, with 54% of them saying that they are pessimistic about ever achieving their goal of homeownership, per a new CNN poll.
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 — $1,982 versus $2,324. San Francisco was next closest at 11.8% lower, followed by Austin, Texas, where rent was 8% lower.
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“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,” Channel said. “Nonetheless, high costs are unlikely to outright vanish, and difficulties related to paying these expenses are, unfortunately, likely to persist.”
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