Childcare costs rising faster than rent, new research shows

As of October 22, 2026, U.S. families are struggling to afford childcare due to costs rising faster than rent. Nearly 8% of households are now paying over $2,000 a month on daycare, nanny services, and other programs, more than double the share from just three years ago. According to new research by the Bank of America Institute, families spent an average of 8% of their monthly incomes on childcare in September, exceeding the federal guideline threshold of 7%. To keep childcare costs under this threshold, a family spending $24,000 annually would need to earn approximately $343,000. In contrast, median household income in the U.S. was only $87,460 in 2025, according to Census Bureau data. This trend is straining household budgets across the country and putting significant pressure on lower- and middle-income families who spend nearly 9% of their annual incomes on childcare.