From cradle to preschool: The American dream now comes with a hefty price tag.
Source – Morning Brew
Childcare in the United States is a vital resource for families, providing a safe and nurturing environment for children to learn and grow while parents focus on their careers. However, in a country often hailed as the land of opportunity, the rising costs of childcare have emerged as a significant obstacle for families trying to balance work and home life.
The average cost of childcare in the USA for infants ranges from $400 to $1,500 per month. This substantial expense is putting a strain on household budgets, forcing parents to make tough decisions about their careers, family planning, and financial future.
Of parents surveyed in the 2022 Cost of Care Survey, 72% say center-based care for their infant costs 10% of their family’s income. 51% of respondents spend more than 20%. Ironically, the US Department of Health and Human Services (HHS) considers daycare affordable when it costs no more than 7% of their household income.
In this article, we’ll explore how much daycare costs in the USA, looking at variations between states, the factors influencing these costs, and the impact on families. Whether you’re looking for the most affordable options or identifying where parents face the steepest challenges, we’ve got you covered.
What are the average childcare costs in the USA?
The average childcare costs in the USA vary depending on the type of care, location, and age of the child. According to the National Database of Childcare Prices (NDCP), the median annual cost of care for a single child can require up to 19.3% of a family’s income. This substantial percentage underscores the financial burden that childcare can place on families, making it crucial for parents to carefully consider their options and budget accordingly.
Childcare Costs Across All 54 States
Wondering how much is daycare in the different states of the USA? It can be a rollercoaster ride for parents’ wallets. The cost of childcare by state varies dramatically depending on where you live. While some states offer more affordable options, others can feel like a financial black hole. Understand it like this:
- Coastal Capitals: Cities like San Francisco and New York City are known for their sky-high daycare rates – think of them as the luxury resorts of the childcare world.
- Heartland Bargains: States in the Midwest often have more reasonable rates. Imagine finding a hidden gem of affordable care.
- Rural Retreats: Smaller towns and rural areas might offer cheaper options, but availability and quality vary.
Below is a brief overview of average daycare costs across all 54 states.
Source:
Child Care at a Standstill: Price and Landscape Analysis
Child care costs in the United States
1. Alabama
How much does daycare cost annually in Alabama?
- Average Annual Cost: $6,000 – $7,000
- Details:
- One of the most affordable states for childcare.
- Many rural areas offer lower costs compared to urban centers like Birmingham.
- Families often rely on informal care due to limited access to licensed centers.
How do Alabama’s demographics impact childcare?
- For the average Alabama family, childcare costs 11.9% of their gross income.
- Minimum wage workers in Alabama often earn less than $16,000 per year, adding to Alabama’s poverty rate of 17.2%.
- Because of a poverty rate of 17.2%, families in Alabama struggled with using tech to set up virtual classes during COVID-19, resulting in learning losses for 11% of children.
2. Alaska
How much does daycare cost annually in Alaska?
- Average Annual Cost: $12,000 – $13,500
- Details:
- Higher costs due to the state’s remote location and a limited number of childcare centers.
- Childcare availability is concentrated in urban areas like Anchorage and Fairbanks.
- Additional costs for transportation in rural areas.
How do Alaska’s demographics impact childcare?
- Although Alaska is the largest US state, it is the least populated state in the Union. The average population density in Alaska is 1.2 people per square mile.
- The median income in nuclear households is $51,651 annually, with families spending 20% on childcare.
3. Arizona
How much does daycare cost annually in Arizona?
- Average Annual Cost: $10,500 – $12,000
- Details:
- Higher childcare costs in cities like Phoenix and Tucson.
- A growing population has led to increased demand for licensed childcare centers.
- Availability of government grants and subsidies to help offset costs.
How do Arizona’s demographics impact childcare?
- Although Arizona is the sixth largest US state by area, the average family earnings are low, with households making around $40,039 annually.
- However, parents expect childcare bills to lower as the fastest-growing state by population is attracting childcare service providers in hordes.
4. Arkansas
How much does daycare cost annually in Arkansas?
- Average Annual Cost: $6,500 – $8,000
- Details:
- Affordable childcare options, especially in rural areas.
- The low cost of living keeps childcare rates below the national average.
- Limited options for high-quality, licensed childcare centers in certain regions.
How do Arkansas’s demographics impact childcare?
- Arkansas is among the 10 states with the highest poverty rates.
- The state is home to some of America’s poorest families, and reported a 16.4% poverty rate in 2022 – 7th highest among all states.
- A single minimum wage worker spends, on average, 35.8% of their pay on child care, while families with kids who earn median wages spend 14.6%.
5. California
How much does daycare cost annually in California?
The Golden State ranks number 4 for childcare costs in the US.
- Average Annual Cost: $16,000 – $20,000
- Details:
- Among the most expensive states for childcare, especially in cities like Los Angeles and San Francisco.
- High demand for childcare centers due to a large working population.
- Subsidized childcare options are available but with long waiting lists.
How do California’s demographics impact childcare?
- Half of Hollywood resides in California, which justifies the skyrocketing childcare prices.
- 93% of its 40 million residents are unable to access affordable childcare services.
- Families spend nearly 20-30% of their annual earnings on care for a single child.
6. Colorado
How much does daycare cost annually in Colorado?
- Average Annual Cost: $15,000 – $16,000
- Details:
- High costs in urban areas like Denver and Boulder.
- Increased focus on early childhood education programs driving up demand and costs.
- State subsidies are available but not sufficient to cover all families in need.
How do Colorado’s demographics impact childcare?
- Colorado ranks as the fifth costliest state for childcare
- Since minimum wage workers earn nearly $25000 annually, they spend 50% of it on childcare, which burns a hole in their pocket.
7. Connecticut
How much does daycare cost annually in Connecticut?
- Average Annual Cost: $15,000 – $18,000
- Details:
- Childcare costs are higher than the national average.
- Demand for high-quality early childhood programs is increasing.
- Suburban areas are more affordable compared to cities like Hartford.
How do Connecticut’s demographics impact childcare?
- On average, nuclear family households make about $45359 annually, making childcare bills stressful for them.
- They would need to spend 73.8% of what they earn to afford just one year of infant care services for their child.
8. Delaware
How much does daycare cost annually in Delaware?
- Average Annual Cost: $9,000 – $11,000
- Details:
- Affordable compared to neighboring states like Maryland.
- Demand for licensed centers is growing, especially in urban areas.
- Limited availability of flexible care options.
How do Delaware’s demographics impact childcare?
- Delaware workers make around $28000 annually. The minimum wages in the US state have been stagnant even though inflation has been on the rise.
- Latest statistics conclude that the parents end up spending 55% of their annual earnings on daycare services.
9. Florida
How much does daycare cost annually in Florida?
- Average Annual Cost: $9,000 – $10,500
- Details:
- Costs vary significantly between urban centers like Miami and smaller cities.
- Many families rely on family-based childcare options.
- State-funded programs offer limited assistance to low-income families.
How do Florida’s demographics impact childcare?
- The median wage in Florida is $34,560. This puts the state at 41st among all states.
- A family earning two median incomes would spend 13.3% of their gross income on infant care services for one child.
- However, daycare providers argue that a sizable part of their budget has to be allocated to tech – live streaming classes, bus tracking, and a parent-teacher communication app.
10. Georgia
How much does daycare cost annually in Georgia?
- Average Annual Cost: $8,500 – $10,000
- Details:
- Increasing costs due to a growing population in cities like Atlanta.
- High demand for licensed centers, though rural areas still offer more affordable options.
- The availability of state-run early education programs helps offset costs.
How do Georgia’s demographics impact childcare?
- Georgia’s median earnings are $40000 annually, due to which childcare becomes inaccessible to the minimum age worker who earns $20000/year.
- Because they would have to spend about 80% of their gross income on child care with just one child, the lowest-paid residents of the state will never be able to afford it.
- Georgia is the eighth-most populous state with nearly 10 million citizens. The availability of cheap child care would have a significant positive economic and social impact.
11. Hawaii
How much does daycare cost annually in Hawai?
- Average Annual Cost: $13,000 – $14,500
- Details:
- The remote location and high cost of living drive up childcare expenses.
- Limited childcare options, particularly outside urban areas like Honolulu.
- Few subsidies are available for middle-income families.
How do Hawaii's demographics impact childcare?
- The state of beautiful beaches also has the highest cost of living in the US. The average earnings of married families in Hawaii is $108893 yearly and of nuclear families comes in at $49031/annum.
- The latter group struggle with affording childcare, spending 15% of their income on childcare management services put in place by childcare owners.
12. Idaho
How much does daycare cost annually Idaho?
- Average Annual Cost: $7,000 – $8,500
- Details:
- Lower-than-average childcare costs, especially in rural areas.
- Growing demand in cities like Boise as population increases.
- Limited availability of licensed centers in some regions.
How do Idaho’s demographics impact childcare?
- The current Idaho state minimum wage is $23000/annum an hour.
- Many families who make the median income in this US state can’t afford childcare costs as it takes up 18% of their earnings.
- How much does daycare cost annually in Idaho?
- In Idaho, the average annual cost of daycare for an infant is around $6,444, which is lower than the national average. Idaho is considered one of the more affordable states for childcare, making it a more accessible option for families. The lower cost of living in Idaho, along with a growing number of childcare centers, helps keep these expenses manageable for parents. This affordability can provide significant relief for families, allowing them to allocate their income to other essential needs and savings.
13. Illinois
How much does daycare cost annually Illinois?
- Average Annual Cost: $13,000 – $15,000
- Details:
- High costs in urban areas like Chicago, though suburban regions are more affordable.
- Increased focus on early childhood education contributes to rising costs.
- State subsidies are available but competitive to secure.
How do Illinois’s demographics impact childcare?
- The cost of child care for households is close to the median household income level of $5,730 per month, which is more than 20% of gross income.
- Childcare services take away an astounding 50% of the median yearly income of families based in Illinois.
14. Indiana
How much does daycare cost annually in Indiana?
- Average Annual Cost: $12,000 – $13,500
- Details:
- More affordable childcare compared to neighboring states.
- Higher costs in urban centers like Indianapolis.
- Limited availability of flexible care options for working parents.
How do Indiana’s demographics impact childcare?
- Indiana has a diverse population. The most prominent races are Blacks and Hispanics, with 27% below the poverty level. In contrast, only 10% of Whites are below the poverty line.
- The median income of $30000-$50000 makes it difficult for parents to provide a developmentally appropriate education to their kids.
15. Iowa
How much does daycare cost annually in Iowa?
- Average Annual Cost: $9,000 – $10,500
- Details:
- Affordable childcare, particularly in rural regions.
- State-funded programs assist low-income families.
- Demand for licensed centers growing in cities like Des Moines.
How do Iowa’s demographics impact childcare?
- Situated in the midwest, Iowa’s population comprises farmers who work the farmlands and tend to the livestock.
- With 11.11% of people in Iowa below the poverty line and earning a median income of $35000-$60000, childcare providers struggle to market their childcare to mothers, majority of whom stay at home to look after the children.
16. Kansas
How much does daycare cost annually Kansas?
- Average Annual Cost: $10,500 – $12,000
- Details:
- Childcare costs vary widely between rural and urban areas.
- Higher costs in growing cities like Wichita.
- Few state programs are available to help with childcare expenses.
How do Kansas’s demographics impact childcare?
- Kansas people still struggle to locate reasonably priced, high-quality child care choices, despite having the eighth-lowest cost of living in the country.
- The median household income in Kansas amounted to $84,830 in 2023.
- The parents in Kansas spend nearly 15% of their earnings to cover childcare costs for a single child.
17. Kentucky
How much does daycare cost annually in Kentucky ?
- Average Annual Cost: $6,300 – $8,500
- Details:
- Affordable childcare in rural areas, though urban centers like Louisville are more expensive.
- Limited availability of licensed childcare centers in certain regions.
- The state offers subsidies for low-income families.
How do Kentucky’s demographics impact childcare?
- Even while child care is more reasonable in Kentucky than in other parts of the country, many families still cannot afford it.
- A family would spend slightly under 12% of their total income on center-based infant care for one child with a typical household income of around $4,500 per month.
- Kentucky’s low cost of living makes it a terrific location to start a profitable childcare. There’s not a lot of competition in the childcare industry, giving you an opportunity to free parents for joining work by leaving their kids behind with you.
18. Louisiana
How much does daycare cost annually in Louisiana?
- Average Annual Cost: $7,500 – $9,500
- Details:
- Costs are rising, particularly in urban areas like New Orleans.
- Limited access to high-quality, licensed childcare centers.
- State-funded programs are available for low-income families.
How do Louisiana’s demographics impact childcare?
- Louisiana’s childcare costs are low compared to other US states.
- At a median salary of $50,800 per household, childcare owners and directors observe centers running at low capacity because it’s not within an affordable range for families.
19. Maine
How much does daycare cost annually in Maine?
- Average Annual Cost: $9,000 – $12,000
- Details:
- Higher costs due to the state’s remote location and a limited number of childcare centers.
- Demand for childcare is concentrated in urban areas like Portland.
- Rural regions offer fewer licensed options.
How do Maine’s demographics impact childcare?
- Maine is one of the least populated US states. Majority of the people live in and around Portland, making it an ideal location to start your preschool.
- The median salary of families is above industry standards in Maine, which will help you turn your preschool profitable.
20. Maryland
How much does daycare cost annually in Maryland?
- Average Annual Cost: $14,000 – $17,000
- Details:
- One of the more expensive states for childcare, particularly in urban areas like Baltimore.
- High demand for quality centers, driving up costs.
- Subsidies are available but not sufficient to cover the majority of families.
How do Maryland’s demographics impact childcare?
- The median wage of a household is $69110, which means families spend nearly 10% of their income on rearing children
- Maryland’s average salary for child care employees is slightly above the federal minimum, but many families find it difficult to afford childcare because of the depreciating job sector.
21. Massachusetts
How much does daycare cost annually in Massachusetts?
- Average Annual Cost: $18,000 – $20,000
- Details:
- Among the most expensive states for childcare, particularly in Boston.
- High demand for early childhood education programs.
- Some subsidies are available, but waiting lists are long.
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