Nursery school for two children costs more than rent in US

(New York, Bloomberg) Child care costs have risen sharply in US states, and for the average family, sending more than one child to daycare is now more expensive than rent.

Child care for two children costs at least 25 percent more than the average rent across the country, according to a report by the nonprofit Child Care Association of America. In eight of those states and Washington, D.C., child care costs more than double the average rent.

The most expensive child care is in the northeastern state of Vermont, where it costs US $35,016 (S $47,100) for two children, compared with an average rent of US $13,788.

Last year, the average cost of child care for a child in the United States was $11,582, a 3.7 percent increase from the previous year. The average American family has two children, and child care now takes up about 10% of household income, exceeding the government's recommended maximum of 7%, creating an increasingly heavy financial burden.

Childcare costs continue to hit record highs, and some parents are having to work two jobs to make ends meet.

U.S. Treasury Secretary Janet Yellen said in January that a lack of affordable child care is one of the reasons Americans are frustrated with working parents.

In addition to the cost of child care, inflation and rising home prices have also put a strain on American families. According to a StreetEasy report, rent growth outpaced salary growth in about half of the largest cities in the US last year.

Eric Perry, CEO of the National Child Care Association, noted that nearly all families are facing the rising cost of living and the increasing burden of supporting their families. If housing costs and child care become so high that other family needs cannot be met, some parents may choose to quit their jobs and take care of their children themselves.

To make matters worse, the $24 billion in federal grants that helped hundreds of thousands of child care centers survive the pandemic ran out in September. The Century Foundation, a US think-tank, estimated last year that thousands of childcare programmes could be shut down, leaving more than 3m children without care.