Childcare Now Costs More Than Rent in All 50 States, Report Finds

Category: US News / Economy | Date: October 21, 2026

Sources: CBS News | Child Care Aware of America

Childcare costs in the United States have reached a breaking point: the average cost of care for two children now exceeds the average rent in all 50 states — and surpasses the average mortgage payment in 45 states, according to a report from the nonprofit Child Care Aware of America.

The findings underscore a deepening affordability crisis that is reshaping how American families work, spend, and plan their futures.

The Numbers

  • Average full-time childcare: ~$13,000 per year, per child
  • Rising faster than inflation in 39 states
  • Exceeds average rent in all 50 states
  • In San Francisco County: center-based infant care costs $31,544/year vs. ~$29,028 in annual rent

"Child care has been under-resourced for decades, contributing to the current inadequate supply of high-quality programs and a situation where too many families are priced out of the system," the Child Care Aware report stated.

How Families Are Coping

With costs climbing faster than wages, families are making difficult trade-offs:

Cutting back on care. A 2026 survey of 2,000 New York City families found that 20% had reduced childcare coverage or switched to informal alternatives.

Working fewer hours. Some parents are cutting work hours or leaving full-time employment to reduce childcare needs — but this shrinks household income, creating a different financial strain.

Taking on debt. Many families report taking out personal loans to cover childcare alongside other household expenses.

Turning to alternatives. Families are substituting expensive daycare centers with more affordable options like family members, nannies sharing arrangements, or part-time programs.

The Bigger Picture

Experts warn the crisis has ripple effects across the economy. When childcare costs consume a parent's entire paycheck, the financial incentive to work disappears — particularly for secondary earners and single parents. This dynamic can push workers out of the labor force entirely.

In Suffolk County, Massachusetts, infant center-based care consumed about 29% of median family income — the highest share reported nationally. In some counties, families previously spent nearly half their income on care for a single child.

Child Care Aware recommends increased government funding to expand subsidies for families and boost wages for childcare workers, arguing that the current system is chronically under-resourced.

What This Means

Childcare has quietly become one of the largest household expenses in America — rivaling or exceeding housing costs. Until supply increases and costs stabilize, millions of working families will continue to face an impossible math problem: paying to work.

This is an original summary based on reporting from CBS News and data from Child Care Aware of America.

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