Nearly 8% of American families now pay more than $2,000 a month for childcare, including daycare, nannies and other programs. That share is more than double what it was three years ago, according to Bank of America Institute research reported by CBS News on Oct. 22, 2026.
Why Daycare Bills Are Outrunning Rent
In September 2026, the cost of daycare and school-related fees rose faster than other essential expenses, such as rent and medical care, compared with a year earlier, according to federal labor data cited by CBS News. Bank of America Institute found that median childcare costs rose fastest over that 12-month period in Nashville, Tennessee. Jacksonville, Florida, and Phoenix, Arizona, followed. BofA Institute economist Taylor Bowley linked the increases to more domestic migration into those areas, which is raising demand for childcare.
A worker shortage also appears to be pushing costs up. Employment in the childcare sector fell 0.7% in September 2026 compared with a year earlier, according to CBS News. BofA Institute senior economist David Tinsley told CBS News that job growth is falling and price pressures are creeping in, leading to ‘a bit of an availability problem.’
Follow the Dollars From the Paycheck to the Daycare Bill
Families nationwide spent an average of 8% of their monthly income on childcare in September 2026, according to BofA Institute. Under federal guidelines, childcare is considered affordable at no more than 7% of household income. Lower- and middle-income families spent nearly 9% of their income on childcare, while higher-income households spent 7.3%, BofA found.
Economic Policy Institute economist Elise Gould told CBS News that slowing wage growth is adding to the pressure on families. The median U.S. household income was $87,460 in 2025, according to Census Bureau data. Separately, AARP research cited by CBS News found that grandparents provide $172 billion a year in direct financial assistance to families.
Our Math on the Gap Between ‘Affordable’ and Actual
This illustration applies BofA’s 8% average to the Census Bureau’s $87,460 median household income. Eight percent times $87,460 equals $6,996.80 a year. Divided by 12, that is about $583 a month. At the federal 7% line, the same income gives $6,122.20 a year, or about $510 a month. The gap is $6,996.80 minus $6,122.20, or $874.60 a year, which is about $73 a month.
This is not a projection. BofA’s 8% is an average for families paying for childcare, while the Census median covers all households. CBS News gives a sharper example: a family spending $24,000 a year would need to earn about $343,000 to stay under 7%. That figure comes from $24,000 divided by 0.07.
What to Check This Week
Add up your monthly childcare bill and divide it by your monthly household income to see where you stand against the 7% federal benchmark. Then watch the next federal employment data for childcare-sector jobs, since fewer workers can mean fewer slots and higher fees. Sources: CBS News, citing Bank of America Institute research, Census Bureau data, the Economic Policy Institute and AARP.
Next in the Brief: If childcare employment keeps falling, how much higher could monthly bills climb next year?
Disclaimer: This analysis is for educational and informational purposes only and should not be construed as financial or investment advice.
