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The Growth of Day Care Industry in the US

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Last Updated: Aug 5, 2021

In the US, millions of babies are brought into the world every single year, although the rate is declining. 2017 saw the United States ‘enjoying’ its lowest birthrate in 30 years, according to the CDC.

In a survey, when answering why they had fewer children than they wanted respondents answers were very similar to one another: “Day care is too expensive”, “economy worries”, “financial insecurity”. The truth is, babies are expensive and the current administration won’t be offering relief any time soon.

Large Demand

Demand for affordable child day care is rocketing, but with wait lists getting longer the prices get higher – it is very much a seller’s market. If anybody was thinking of getting into the child day care business, now is the time to do it.

Once properly licensed and the proper daycare insurance secured, you will be in prime position to take advantage of what is going to turn into a growth industry (once others catch on).

The economy in other areas is positively booming, but with many mother’s unable to return to work due to a shortage of day care facilities[1] and the rising costs of the ones that are around, it can only begin to stagnate sooner or later.

Paid Maternity Leave

The US is the only developed country in the world that does not offer paid maternity leave, at least not as a federal mandate. If and when a mother does return to work after childbirth, she must then deal with the reality of attempting to find daycare facilities for her child. Click here for more information.

As mentioned, even if she does manage to find something viable reasonably close by she is more than likely to face lengthy wait times – and how long would her employer be willing to wait for her to come back? It is exactly these problems that new start day care businesses are in a position to solve.

The day care industry may not be enjoying a whole lot of growth right now but that could easily be resolved by entrepreneurial spirit.

The Child Care Deserts

Almost half of the children of five years and younger live in those parts of the country that have been dubbed child-care deserts. These are rural areas where there are either no child care facilities or the ones that are there cannot meet the demand of the community.

This, of course, impacts the local economy because of lost wages for parents that have no choice but to quit their jobs in order to stay home and look after their children. The lucky few who are able to gain access to child day care are forced to pour around half of their income (a little over 52%) into covering child care costs.


Great Opportunities

If the serious lack of centres is an opportunity for a business venture, then the so-called child care deserts have to be the first places to look into investing in. The potential for growth is staggering, not to mention the good it would do to the local economy and of course the parents and children themselves.

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