Childcare has become unaffordable for families across nearly the entire United States, according to state‑by‑state data from the Economic Policy Institute (EPI) cited in a recent analysis by Realtor.com.
The findings show that not one single U.S. state meets the federal affordability benchmark for childcare, placing widespread financial strain on households with young children regardless of where they live.
Newsweek has compiled a map showing the states where childcare is least affordable.
Childcare Exceeds Federal Affordability Standards Nationwide
According to the real estate data and information site, the U.S. Department of Health and Human Services defines affordable childcare as costing no more than 7 percent of a household’s income.
However, EPI data shows that even families earning a typical income are paying more (often by several percentage points) than what’s considered affordable, no matter which state they live in, challenging the long‑held assumption that childcare affordability is primarily a low‑income issue.
Having said that, the gap is even wider for minimum‑wage workers, with childcare costs alone surpassing annual earnings in some states.
In addition, the cost of infant care now exceeds in‑state public college tuition in 29 states and the District of Columbia, showing how quickly prices have climbed over the past decade, according to EPI data.
Where Families Are Hit the Hardest
This map, compiled by Newsweek using data from the EPI and accompanying analysis from Realtor, shows that childcare burdens are highest in western and northeastern states, where families spend the largest share of their income on childcare.
States such as Hawaii, California, Massachusetts, New York, and Washington rank among the most expensive for infant childcare, with families often spending 15 percent or more of household income on care for a single child, leaving little flexibility in household budgets.
However, analysts caution that high‑cost states are not the only ones affected.
Even in lower‑cost regions, childcare routinely exceeds federal affordability standards, meaning families nationwide face difficult financial trade‑offs.
How Does Your State Compare?
While childcare is unaffordable across the entire country, the severity of the burden varies by state, according to EPI data cited by Realtor.
Worst‑Impacted States
- Hawaii
- California
- Massachusetts
- New York
- Oregon
- Washington
- Colorado
- Maryland
- New Jersey
- Connecticut
Families in these states often devote far more than the 7 percent affordability benchmark to childcare, particularly for infants.
Best‑Case States (Still Not Affordable)
- South Dakota
- Mississippi
- Alabama
- Arkansas
- Kentucky
Although childcare costs are comparatively lower in these states, median‑income families still exceed federal affordability standards, and care is frequently out of reach for lower‑income workers.
Why Childcare Costs Keep Rising
Researchers point to a combination of factors driving sustained increases in childcare costs, including staffing shortages, low wages for childcare workers, rising insurance premiums, and the closure of smaller childcare centers.
More than half of the U.S. population now lives in a “childcare desert,” defined by the Center for American Progress (CAP), as an area with more than 50 children under age 5 where child care options are either non-existent or so limited that there are at least three children for every licensed child care slot. The largest childcare deserts are in Utah, Nevada, Hawaii, and West Virginia, according to data from the CAP.
Provider shortages reduce competition and contribute to higher prices, particularly for infant care, which is the most resource‑intensive type of childcare.
What This Means for Your Family
For many households, the childcare affordability crisis is not an abstract economic issue—it directly shapes everyday decisions about work, housing, and long‑term stability.
Families with young children are often forced to make difficult trade‑offs between paying for childcare and covering rent or mortgage payments.
Renters With Young Children
Renters face some of the sharpest pressures. Research cited in the analysis shows that households with children account for more than half (52 percent) of eviction filings nationwide. This is linked to the high cost of childcare, which families must pay to remain in the workforce and be able to afford their rent.
First‑Time Homebuyers
For families hoping to buy their first home, expensive childcare can delay or derail homeownership altogether. Economists say money that might otherwise be used for down payments or closing costs is instead diverted to monthly childcare bills. This dynamic is especially pronounced in high‑cost states such as California, Massachusetts, and Hawaii, where childcare and mortgage payments together can consume more than 70 percent of a median household’s income.
Single‑Parent and Lower‑Income Households
The burden can be even heavier for single parents and minimum‑wage workers. In some states, the cost of childcare alone exceeds a full‑time worker’s annual earnings, making formal care effectively inaccessible without outside assistance. According to County Health Rankings and Roadmaps, childcare costs for a full‑time minimum‑wage worker can range from about 63 percent to as much as 184 percent of annual earnings.
Childcare Workers Themselves
Ironically, EPI data also shows that childcare workers themselves often can’t afford childcare, with employees needing to spend between 30 percent and 74 percent of their income on childcare for their own children.
The takeaway is clear: As long as childcare remains unaffordable in every state, families will continue to face difficult choices about where they live, whether they can work, and how financially secure they can be.
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