Child care costs more than rent across 100 largest US metros

(NewsNation) — Sending two kids to day care is about 40 percent more expensive than rent across the nation’s 100 largest metros, according to a new study from LendingTree.

The analysis determined that the average monthly cost of full-time center-based child care for an infant and a 4-year-old is $2,182. That’s 39.4 percent higher than the average rent for a two-bedroom unit, which is $1,566.

In some cities, families can expect to pay more than double the average rent for child care.

Springfield, Mass., had the highest child-care-to-rent ratio, with families paying 136 percent more per month for two kids in day care ($3,241) compared to rent ($1,375).

Syracuse (131 percent) and Buffalo, N.Y. (125 percent), had the next highest differences, followed by Spokane, Wash. (116 percent), and Bakersfield, Calif. (109 percent).

“Costs are likely forcing lots of parents in these metros to make difficult choices, including whether to go back to work after the little one arrives and whether to have another child,” Matt Schulz, LendingTree chief credit analyst, said in the report.

But it’s not just parents in a few cities who are facing difficult choices. In 91 of the 100 metros studied, full-time child care for two kids was more expensive than monthly rent, the report found.

At $3,773 per month, Washington, D.C., was the most expensive place to have two young kids in daycare. Boston was second at $3,648 a month, followed by Worcester, Massachusetts ($3,424).

Families in nine metros — less than 10 percent of those studied — are getting a slightly better deal, paying less for child care than the average rent.

Miami ranks lowest, with child care for two kids costing $1,982, about 15 percent lower than the rent of $2,324. San Francisco (-12 percent), Austin (-8 percent) and San Jose (-7 percent) also had lower child care costs compared to rent.

Part of that is because rent in those cities is much higher than the national average. In San Francisco, the average two-bedroom rent is $3,359 a month, while in San Jose, it’s $3,132, according to the analysis.

In dollar terms, families in the South pay the least for child care. In Jackson, Mississippi, sending two kids to full-time day care costs $1,337 a month — the lowest in the U.S. but still $178 more than the average two-bedroom rent.

Only four other metros had monthly child care costs under $1,500: Greenville ($1,433) and Columbia ($1,439), South Carolina; Little Rock, Arkansas ($1,467) and Birmingham, Alabama ($1,468).

The rent versus child care outlook is slightly better for families with only one kid. In that scenario, full-time day care for an infant costs $1,218 per month — 22 percent less than the average two-bedroom unit.

Even so, in 16 metros, a single child in full-time day care costs more than the average rent.

“Any way you slice it, securing day care for that second child is going to be expensive unless you have trusted friends or relatives willing to pitch in,” Schulz said.

A 2023 Labor Department report found that center-based care for infants now costs $17,171 a year per child in large counties.

LendingTree’s report is based on an analysis of Child Care Aware of America and Bureau of Labor Statistics (BLS) data.

The 10 U.S. metros with the highest monthly child care costs for two kids, according to LendingTree

1. Washington, DC: $3,773
2. Boston, MA: $3,648
3. Worcester, MA: $3,424
4. Springfield, MA: $3,241
5. New York, NY: $3,151
6. Minneapolis, MN: $3,131
7. Seattle, WA: $3,114
8. Poughkeepsie, NY: $3,067
9. Honolulu, HI: $3,035
10. San Francisco, CA: $2,964

The 10 U.S. metros with the lowest monthly child care costs for two kids, according to LendingTree

1. Jackson, MS: $1,337
2. Greenville, SC: $1,433
3. Columbia, SC: $1,439
4. Little Rock, AR: $1,467
5. Birmingham, AL: $1,468
6. Charleston, SC: $1,523
7. McAllen, TX: $1,557
8. Louisville, KY: $1,567
9. Tulsa, OK: $1,571
10. Oklahoma City, OK: $1,587