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Rental Prices Lower in US Than Cost of Childcare
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Rental Prices Lower in US Than Cost of Childcare

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NEW YORK — September 3, 2018

Living in the US is expensive, especially for low-income families. Many of them have to take into account the costs of a child, a large proportion of which relates to schooling.

According to a recent study of the Hot Pads portal, spending on housing is quite comparable to the money that Americans give for kindergarten

Using data from Care.com’s Care Index and the Census Bureau, it was found that the average monthly cost of child care in the U.S. – including at-home and in-center care – is $1,385 a month. Nationally, the median rent payment is $1,500 a month – only $115 more than the monthly cost of child care.

The cost of living is rising across the nation, and the rising costs of rent and child care reflect that. Median rent across the U.S. rose 2.3 percent over the past year, while the average cost of childcare rose 1.6 percent, according to Bureau of Labor Statistics data.

HotPads also looked at how monthly child care costs and monthly rent costs compare in 48 different metro areas. Renters in some less expensive markets, such as Pittsburgh, Memphis, T.N., and Louisville, K.Y., can expect to spend $180 or more on child care each month than they do on rent.

On the other hand, renters in some expensive rental markets like San Jose, San Francisco, and Los Angeles can expect to spend less on child care each month than they do on rent. That said, renters in these markets face a combination of high rents and child care costs, spending more on rent and childcare combined than in any other metro we analyzed.

"Despite the fact that rent growth has slowed due to economic recovery, spending on childcare is likely to increase. For tenants with young children, this means that any savings accumulated in recent years due to the stabilization of the situation with the rent can quickly dry up due to the increase in the cost of childcare," — said the economist Joshua Klar.

Since 2010, rents in New York have risen by an average of 31%. The increase was uneven: in some areas only 15%, in others 45%.

In neighborhoods where at least 25% of residents are families with young children, prices rose 5% faster than in neighborhoods with fewer families.

Where 50% of residents had lower-than-average incomes in New York, rents increased by 6% faster than in the neighborhoods where most people live in middle-and upper-middle income.

If we talk about the General trends, from January 2010 to January 2018 rental rates in the city increased by an average of 31%.

Author: USA Really