New study shows daycare costs more than rent and mortgage in almost every state

A new study shows your child's daycare costs more than rent and mortgage in almost every state. It has some groups demanding change.

Child Care Aware of America says in a report that childcare continues to be a major financial burden for many parents. They found that placing two kids at a childcare center cost at least 25% more than the typical rent, on average, in every state in the US, and the District of Columbia last year. The price tag exceeded annual typical mortgage payments in 45 states.

According to their data the average annual childcare price for two children in Tennessee, like an infant and a 4-year-old, is more than $22,374. The average cost of housing sits at just over $17,388 and average the average cost of tuition sits at $10,889.

The median income for a single parent family is $32,374, which means childcare would use 36-40% of a single parent's income.

Child Care Aware says we're seeing these high prices because many childcare providers have closed their doors since 2020 or jacked up their prices to retain their workers and maintain a safe environment.

The nonprofit recommends that lawmakers prioritize childcare in every state and increase funding for the system so families have more subsidies, lowered costs of childcare, and increased access and supply.

They say this is a challenge should not be ignored so that families are not priced out of the system.

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