New York is the 4th Most Expensive State for Child Care
According to a study done by David Heacock of How to Home, New York is the fourth most expensive state in the country when it comes to the price of child care.
According to the study, New Yorkers spend an average of 6.6% of their annual income on child care each year. For the average annual income of $100,000, that's $8,320 every year. And more New Yorkers will find themselves having to pay that price as remote work opportunities start to decrease and more workers have to start returning to the office. And in terms of the gross amount spent on child care each year, only Alaska and Virginia spend more than New York.
The study also found that child care costs disproportionately effect low income households. Households making over $100,000 per year spend just under 5 percent of that income on child care. But for households making under $25,000 per year, that number is over 15 percent. And for households making between $25,000 and $50,000 per year, the number is just below 10 percent.
The study also noted that increased spending on day care and preschool has vastly outpaced the increase in spending on all other goods and services. Since 2000, all other goods and services have become just short of 80 percent more expensive, while child care costs have risen by nearly 120 percent. Even with the sharp rise in inflation beginning with the Covid-19 pandemic, day care and preschool costs continue to outpace all other costs. So in addition to having to pay increased prices for food and essentials, families are spending an even higher proportion of their income on child care cost increases.