Childcare Costs Squeeze Homeowners
Child care costs have jumped 49% over the last 25 years. The cost of housing has increased by 14% in comparison, according to a new analysis from Freddie Mac.
“The list of expenses for a family can be never-ending … and presents challenges for many looking to buy or rent,” says Sam Khater, Freddie Mac’s chief economist. “One of the major challenges, when it comes to affording a home, is the high cost of child care. Our analysis finds that those families paying for child care generally are left with less money for housing. Specifically, we find they, on average, pay about half of the median mortgage payment and nearly 80% of the median rent.”
Freddie Mac’s research found that families spend, on average, $715 a month on child care. That rises to $758 per month if the main parent with child care responsibilities is employed (the mother in most cases). Families with younger children (to age 4) face even higher costs, averaging $948 per month.