"A 2024 study found that a family of four needs an annual income of $318,406 to live comfortably in New York City, but according to the U.S. Census Bureau the median household income in the city was just $79,713 in 2023. When you are coming up short by over $200,000 the idea of staying in the city becomes quickly untenable, especially when the cost of childcare accounts for so much of a family's monthly budget."
"For childcare to be considered affordable according to national guidelines it needs to account for no more than 7% of a family's budget. But with the average cost of daycare for infants and toddlers in the city clocking in between $18,000 and $26,000 a year, child care for one kid alone would eat up over 20% of the average family's income."
Approximately 445,000 New York City families have children under five; 80% cannot afford child care. A 2024 study estimates a family of four needs $318,406 annually to live comfortably, while median household income was $79,713 in 2023, creating a gap exceeding $200,000. Average daycare costs for infants and toddlers range from $18,000 to $26,000 annually, surpassing the 7% affordability guideline and consuming over 20% of the average family's income. Middle- and lower-income families are leaving the city, resulting in 186,000 fewer children versus five years ago. Childcare unaffordability causes work interruptions, and 212,000 women have left the workforce since January.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]