Child Care Affordability Gap Grows Despite Increased Supply

ARLINGTON, Va., May 19, 2025 /PRNewswire/ — A new report from Child Care Aware® of America (CCAoA) reveals that while the supply of child care options has increased, the costs are making it difficult for many families to access quality care.

The report shows that from 2023 to 2024, the number of child care centers grew by 1.6% to a total of 92,613, and licensed family child care homes increased by 4.8% to reach 98,807. This growth is primarily driven by states like California, Kansas, Massachusetts, and Virginia, marking a significant recovery from past declines.

However, the average price of child care rose by 29% from 2020 to 2024, surpassing inflation and other significant family costs. Now, for many families, child care consumes about 10% of a married couple’s median household income and 35% for single parents, often exceeding expenses for housing or tuition.

“Child care supply is increasing, and that is a win—but it’s not enough,” said Susan Gale Perry, CEO of CCAoA. She added that while recent investments have helped stabilize supply in some areas, a significant gap remains, particularly for rural communities and infants.

CCAoA urges policymakers to boost funding for child care at both federal and state levels to alleviate rising costs and enhance access. The disparity in state-funded child care investments means that families face uneven resources across the country.

The report emphasizes the importance of targeted investments in child care supply and workforce development to ensure the availability of high-quality care options. For more detailed information, visit the CCAoA website to read the full report.