FOX Business' Lauren Simonetti reports on the latest market and political news surrounding Target, child care costs and rapper Cardi B.
Even as the overall pace of inflation in the United States has moderated over the years, the cost of housing and raising children continues to soar, with child care costs now exceeding rent in many parts of the country.
new LendingTree Research It found that the cost of sending two young children to full-time daycare is currently 40% more expensive than the average rent in the nation's 100 largest metropolitan areas.
In New York City, daycare kids are on leashes to keep them with a group or a supervising adult when they walk outside. In 91 of the 100 largest U.S. cities, the cost of childcare for two children exceeds the cost of rent, a new study finds. (Deb Cohn-Orbach/UCG/Universal Images Group via Getty Images/Getty Images)
An analysis of data from Child Care Aware of America and the Bureau of Labor Statistics (BLS) found that the average monthly cost of full-time, center-based child care for infants and 4-year-olds in the 100 largest U.S. metropolitan areas is $2,182. That's 39.4% more than the average monthly cost of $1,566 to rent a two-bedroom unit.
To elaborate, the average monthly cost of child care per infant is $1,218, just 22.2% cheaper than renting a two-bedroom apartment.
Both Harris and Trump need answers to the housing crisis.
In 91 of the 100 largest U.S. cities, the average monthly cost of putting two children in full-time child care exceeds the monthly rent, according to Lending Tree, and in nine of the largest cities, the cost is twice as much as rent.
A residential apartment in the Long Island City neighborhood of New York City, U.S., Wednesday, July 17, 2024. The cost of putting two young children in full-time child care is currently 40% more expensive than rent in the 100 largest U.S. metropolitan areas. (Photographer: Yuki Iwamura/Bloomberg via Getty Images/Getty Images)
“Paying rent or child care is tough enough on its own, but when you combine them together it becomes even tougher. Unfortunately, they're both expenses that are often necessities and therefore can't be easily avoided,” Jacob Channell, senior economist at LendingTree, told FOX Business.
Economists say the United States as a nation should promote inclusive child care. Housing Reform We are focused on reducing costs for working families.
High mortgage rates mean homeownership remains out of reach for most Americans.
“Given the rising costs of housing and child care, it's no wonder so many young Americans are hesitant to have children,” Channell added.
The highest child care cost-to-rent ratio was in Springfield, Massachusetts, where child care costs for two children are $3,241, 135.7% higher than rent, the study found. Syracuse and Buffalo were new yorkhave the next highest margins at 131.3% and 125.1%, respectively.
A new CNN poll found that the vast majority of people who currently rent say they can't afford to buy a home, and of those, 54% say they're pessimistic about achieving their goal of homeownership.
In only nine metro areas is child care cheaper than rent for a family with two children. In Miami, child care costs are 14.7% less than rent, at $1,982 vs. $2,324. San Francisco is next at 11.8% less, followed by Austin, Texas, where rent is 8% less.
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“As inflation slows and wages continue to rise, necessary expenses like child care and rent may become a little easier to deal with,” Channell said. “That said, high costs are unlikely to disappear entirely and, unfortunately, challenges paying for these expenses are likely to continue.”
