Charles Esther
For the first time in five years, the number of home-based child care programs in the United States is rising.
According to a 2024 report by Child Care Aware of America, licensed home-based child care options increased by nearly 5 percent between 2023 and 2024.
The total number of programs across 39 states with available data reached 98,807.
This marks a positive shift from previous years.
Home-based care hit its highest point in 2020 with 99,958 programs before experiencing a steady decline until 2024.
However, despite the rebound, experts caution that the increase is far from widespread or sufficient to solve the current child care crisis.
Growth Concentrated in a Few States
The overall rise in home-based care has largely been driven by just three states.
California, Massachusetts, and Virginia each recorded more than a 10 percent increase in in-home child care programs.
These states have stood out for their proactive investments in early childhood education.
California now offers child care providers benefits like health care and retirement — a rarity in this field.
Massachusetts supports providers through Commonwealth Cares for Children, which offers monthly stipends.
Virginia has launched a range of early education initiatives, including a child care subsidy program and a state-funded pre-K plan.
Despite these successes, the story is not the same nationwide.
Twenty-nine of the 39 states in the report actually saw a decline in the number of home-based programs.
Financial Support May Be Short-Lived
Sandra Bishop, senior director of research at Child Care Aware of America, warns that the gains made in these select states may not last.
Virginia’s five-year child care initiative is set to end this year.
Without continued investment, there is concern that the number of available child care programs could decline again.
“Up until this point there’s been a steady decrease in all states,” said Bishop.
“Unless states do more, the reasonable thing to predict would be a continued drop.”
She also noted that many states had temporarily boosted child care funding using COVID-19 relief funds.
Now that those funds have dried up, programs may soon face new financial challenges.
Child Care Costs Continue to Climb
While availability remains an issue, affordability is another critical concern.
The report reveals that child care costs rose 29 percent between 2020 and 2024.
That brings the average cost to $13,128 per year.
When adjusted for inflation, this marks a 7 percent increase over five years.
In 45 states and the District of Columbia, child care now costs more than the average mortgage payment.
In 41 states plus D.C., it costs more than in-state college tuition.
The Northeast is the most expensive region, averaging $34,656 for child care annually.
The South is the least expensive, at $23,566 — but even that is more than double the average in-state college tuition in the region.
A Broken Economic Equation
Despite the soaring costs for families, child care workers themselves are severely underpaid.
The average salary for a child care worker is just $33,140 per year.
This means a worker would need to spend 44 to 100 percent of their own income to pay for child care for two children.
“You have this situation of parents paying a lot for child care, but [child care workers] are not making a living wage,” Bishop noted.
This paradox highlights a broken economic model that fails both families and workers.
The Path Forward
The modest rise in home-based child care options is a small step in the right direction.
But experts agree that it’s not nearly enough.
Unless more states follow the lead of California, Massachusetts, and Virginia, the current progress may be short-lived.
To truly address the child care crisis, policymakers must prioritize long-term funding, affordable care for families, and livable wages for workers.
Without systemic change, both parents and providers will continue to struggle in a flawed and unsustainable system.
