Child care can cost more than housing in almost all states. How expensive it is in Tennessee

June 12, 2024
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Child care costs in the United States can be more expensive than housing for some, according to data from 2023.

A new study released from Child Care Aware of America breaks down the costs of child care in the United States and how it compares to other household expenses. The study compares the cost of child care centers and family child care centers along with how much of a household income these take up.

In 2023, Tennessee had a total of 319,000 licensed child care centers and 4,801 licensed family child care spaces.

Here is what the study found for Tennessee and the rest of the United States.

How expensive is child care in Tennessee?

It is a general idea that housing should cost no more than one third of your annual income, and for many people with children, child care can end up being like a second mortgage.

There are two main kinds of child care: Child care centers and family child care spaces. The study breaks the two kinds of child care into the main age groups of infants and toddlers.

Child care centers are your typical daycares where children are cared for in larger groups in a facility outside of a private home. Family care centers are usually provided by one or two individuals inside a person’s private home.

In Tennessee, it costs a family $8,024 on average to send an infant to a family child care center annually. It costs $8,604 to send a toddler to a family child care center annually.

For child care centers, it is much more expensive. Child care centers, on average, charge $11,985 per year for an infant and $11,027 per year for a toddler.

In Tennessee, the median income for a married couple is $104,477. Child care in a center for an infant would take up 11.5% of the family’s annual income. The median income for a single parent family is $32,580 meaning the same child care would take up 36.8% of the annual income.

According to the study, the Department of Health and Human Services recommends that child care take up no more than 7% of a household’s annual income.

How expensive is child care in the United States?

Across the nation, the Northeast is the most expensive region for child care at an average $32,614 per year. The South is the least expensive area for child care at $22,549. In all regions, except the West, child care costs more than housing.

The study also found that in all 50 states plus the District of Columbia, the price of center-based care for two children exceeded average annual rent payments by 25% to over 100%. 

The least affordable states for center-based infant care based on dual-income homes:

  1. Child care for infants in Hawaii costs $22,585 which takes up 18% of income.
  2. Child care for infants in Washington costs $20,370 which takes up 15.2% of the income.
  3. Child care for infants in California costs $19,547 which takes up 15% of the income.
  4. Child care for infants in Colorado costs $19,573 which takes up 14.9% of the income.
  5. Child care for infants in Oregon costs $17,680 which takes up 14.9% of the income.

Tennessee ranked No. 26 for child care center infant care with 11.5% of the household income going towards $11,985 in costs.

The least affordable states for center-based toddler care based on dual-income homes:

  1. Child care for toddlers in Hawaii costs $17,925 which takes up 14.3% of the income.
  2. Child care for toddlers in Oregon costs $16,796 which takes up 14.1% of the income.
  3. Child care for toddlers in Vermont costs $17,353 which takes up 13.9% of the income.
  4. Child care for toddlers in New York costs $18,081 which takes up 13.6% of the income.
  5. Child care for toddlers in Massachusetts costs $22,463 which takes up 13.4% of the income.

Tennessee ranked No. 24 for child care center infant care with 10.6% of the household income going towards $11,027 in costs.

Washington D.C. is the most expensive area in the country for child care. The average cost for infants in a child care center is $25,480, and the cost for toddlers is $23,431.

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