The Second Rent Check
For families with young children, childcare is often the largest single monthly expense after housing — and in some markets, it exceeds rent. The average cost of center-based infant care ranges from $1,200-$2,000 per month depending on location, with metro areas like DC, Boston, San Francisco, and New York at the top. Two children in full-time care can easily cost $30,000-$45,000 per year.
Costs have risen 6-8% annually since 2020, outpacing overall inflation. The primary driver is staffing. Childcare workers earn a median of $13.70/hour — poverty-level wages that make recruitment and retention extremely difficult. Centers that raise wages to attract workers must pass those costs to parents. It's a brutal math problem with no easy solution.
The Workforce Ripple Effect
Childcare costs don't just strain family budgets — they shape labor force participation. An estimated 2-3 million parents (predominantly mothers) work fewer hours or exit the workforce entirely because of childcare costs and availability. When care costs $2,000/month and a second earner makes $3,500/month after taxes, the net benefit of working drops to marginal levels — especially when factoring in commuting, work wardrobe, and convenience spending.
Federal pandemic-era childcare stabilization funding expired in 2023, and roughly 70,000 programs saw funding cuts. Many raised prices or closed entirely. The childcare affordability crisis is structural and worsening, with no significant policy solution on the immediate horizon.