Here’s why childcare is getting more unaffordable, forcing families to make ‘heartbreaking choices’

Core Insights - The childcare industry is facing significant financial pressures due to rising costs, which are impacting both providers and families [1][2][3] Cost Increases - 68% of childcare providers reported increases in liability insurance costs in 2025, up from 46% in 2024, while 66% experienced property insurance hikes compared to 45% the previous year [2] - 44% of childcare providers saw rent or lease costs rise, an increase from 32% [2] - Providers are also facing wage pressures and higher expenses for food, supplies, and facility maintenance, all while public funding is decreasing [2] Tuition Increases - A majority of childcare programs have raised tuition to cover growing expenses, with 65% of childcare centers and 51% of public-school-based programs reporting increases, while only 31% of home-based providers raised tuition [3] Family Financial Strain - Families are experiencing similar increases in essential costs such as housing, insurance, food, and electricity, leading to difficult financial choices [4] - The rising costs of childcare are forcing families into tough decisions, with some parents unable to afford licensed care [5] Provider Challenges - Many childcare providers are operating on thin margins and absorbing rising costs, which affects their business stability [3][5] - Over half of program leaders report they cannot afford the compensation needed for qualified staff or currently lack enough qualified staff [9]