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Child care costs in America have jumped 30% this decade, even as more care providers opened in 2024

By: Equities.com

May 28, 2025 at 11:39 AM EDT

Child care costs in America have jumped 29% this decade, even as more care providers opened in 2024

The number of child care centers in the U.S. reversed a years-long decline in 2024, growing 1.6%, and family child care homes also saw an increase of 4.8%. But the good news on care supply is being offset by a big leap in child care costs as Americans are shelling out nearly 30% more for the services than they were at the start of the decade.

A report released earlier this month by Child Care Aware of America, “Child Care in America: 2024 Price & Supply,” shows that despite promising signs of increased supply, affordability remains a major barrier for family seeking care. The group said the data and underscore the need for increased, sustained federal and state investment.

From 2023 to 2024, the number of child care centers increased to 92,613 and the supply of licensed family child care homes increased to 98,807. But the report pointed out that the national growth in family homes’ supply was driven largely by just four states — California, Kansas, Massachusetts and Virginia.

At the same time, the national average price for child care rose by 29% from 2020 to 2024, outpacing inflation and exceeding other major family household expenses like rent or mortgage payments in many states, the report said.

Child care is now so expensive that it consumes 10% of a married couple with children’s median household income and 35% for a single parent, the group’s numbers show. In most states, families pay more for child care than rent, mortgage payments or in-state university tuition.

“Child care supply is increasing, and that is a win — but it’s not enough,” said Susan Gale Perry, CEO of CCAoA. “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,” she said in a press release announcing the findings.

The report also found that:

In 45 states plus Washington, D.C., the average annual price of center-based child care for two children exceeded mortgage payments, in some states by up to 78%.
In 49 states plus Washington, D.C., the price of center-based child care for two children exceeded median rent payments ranging from 19% to over 100%.
In 41 states plus Washington, D.C., infant care in a center cost more than in-state university tuition.

Among the recommendations from CCAoA based on the report:

Increase child care funding at both state and federal levels to maintain the momentum of growing supply, address rising prices and expand access to child care for families.
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.
Targeted investments in child care supply building and stabilization and child care workforce recruitment and retention strategies are essential to help sustain an adequate supply of high-quality child care options nationwide.

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Child care costs in America have jumped 30% this decade, even as more care providers opened in 2024

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