Introduction
Are you making business decisions based on gut feelings instead of data? In the rapidly evolving childcare industry, understanding the numbers can mean the difference between a thriving center and one struggling to fill spots.
Daycare industry statistics are quantitative data points that measure the childcare market’s size, growth trends, consumer behavior, pricing benchmarks, and operational metrics. These statistics help childcare providers understand market conditions, set competitive pricing, forecast demand, and make strategic business decisions backed by evidence rather than assumptions.
The childcare landscape has shifted dramatically in recent years. Parent expectations have evolved, technology adoption has accelerated, and workforce challenges continue to reshape operations. Whether you’re opening a new center, expanding an existing one, or simply trying to stay competitive, these 25 statistics provide the insights you need.
In this comprehensive guide, we’ve compiled the most important daycare industry statistics from trusted sources including IBISWorld, NAEYC, Care.com, the U.S. Bureau of Labor Statistics, and leading childcare industry researchers. Each statistic includes context on what it means for your business.
Daycare Market Size and Growth Statistics
Understanding the big picture helps you position your center for long-term success.
1. The U.S. childcare industry is worth $60.4 billion in 2026
The daycare and childcare services industry has reached $60.4 billion in annual revenue in the United States, representing steady growth from $54.3 billion in 2021. (Source: IBISWorld, 2026)
What this means for you: The market is large and growing. There’s room for well-run centers to capture market share, especially in underserved areas.
2. The childcare market is projected to grow 4.2% annually through 2030
Industry analysts project 4.2% compound annual growth for the childcare sector through the end of the decade, driven by dual-income households and increased recognition of early childhood education’s importance. (Source: Grand View Research, 2025)
What this means for you: Long-term demand is strong. Investments in facility improvements, staff development, and technology will pay off as the market expands.
3. There are approximately 675,000 childcare establishments in the U.S.
The industry includes approximately 675,000 childcare establishments, ranging from single-employee home daycares to multi-location corporate centers. About 85% are small businesses with fewer than 20 employees. (Source: U.S. Census Bureau, 2025)
What this means for you: Competition is fragmented. Local reputation and service quality matter more than brand recognition in most markets.
4. Center-based care represents 58% of the childcare market
Center-based daycare facilities account for 58% of total industry revenue, with home-based family childcare representing 24% and nanny/in-home care covering the remaining 18%. (Source: Child Care Aware of America, 2025)
What this means for you: Center-based care remains the dominant model. Parents often perceive centers as more reliable and professionally managed than alternatives.
Enrollment and Demand Statistics
These numbers reveal what’s driving enrollment patterns across the industry.
5. 60% of children under age 5 are in some form of regular childcare
Approximately 60% of U.S. children under age 5 (about 12.3 million children) participate in regular childcare arrangements while parents work or attend school. (Source: National Center for Education Statistics, 2025)
What this means for you: The addressable market is massive. Most families with young children need childcare services.
6. Infant care has the longest waitlists, averaging 8.4 months
Parents seeking infant care (0-12 months) wait an average of 8.4 months for an available spot, compared to 4.2 months for toddlers and 2.1 months for preschoolers. (Source: Care.com Cost of Care Survey, 2025)
What this means for you: If you can offer infant care, you’ll likely have consistent demand. The challenge is maintaining required ratios while remaining profitable.
7. 73% of parents report difficulty finding available childcare
Nearly three-quarters of parents (73%) describe finding quality childcare with availability as “difficult” or “very difficult.” This childcare access crisis affects all income levels but disproportionately impacts rural and low-income communities. (Source: Bipartisan Policy Center, 2025)
What this means for you: Demand exceeds supply in most markets. The bottleneck is often qualified staff, not parent interest.
8. Summer enrollment drops 23% on average
Childcare centers experience an average 23% enrollment decline during summer months as school-age children leave and some preschool families take extended vacations. (Source: National Association for the Education of Young Children, 2025)
What this means for you: Plan for seasonal fluctuations. Summer camps, flexible scheduling, and waitlist management help stabilize revenue.
Daycare Pricing Statistics
Pricing decisions directly impact both enrollment and profitability. Here’s what the data shows.
9. Average weekly childcare cost is $321 for center-based care
The national average weekly cost for center-based childcare is $321 ($16,692 annually), though prices vary dramatically by location and age group. Infant care averages $376/week nationally. (Source: Care.com, 2025)
What this means for you: Know your local market rates. National averages provide context, but your pricing should reflect local competition and cost of living.
10. Childcare costs have increased 32% since 2019
Childcare tuition has risen 32% since 2019, outpacing general inflation by 11 percentage points. Labor costs (up 28%) and facility expenses (up 19%) are the primary drivers. (Source: Child Care Aware of America, 2025)
What this means for you: Regular, incremental price increases are expected by parents. Communicate value and improvements when raising rates.
11. Massachusetts has the highest childcare costs at $23,508 annually
Massachusetts leads the nation with average annual childcare costs of $23,508 for center-based infant care, followed by California ($21,960) and New York ($21,120). Mississippi has the lowest at $7,644. (Source: Economic Policy Institute, 2025)
What this means for you: Cost of living correlates strongly with childcare pricing. Research your specific metro area for accurate benchmarking.
12. Childcare costs exceed rent for families in 45% of U.S. counties
In 45% of U.S. counties, center-based infant care costs more than median rent. For families with two children in care, childcare often represents the single largest household expense. (Source: Child Care Aware of America, 2025)
What this means for you: Parents are making significant financial sacrifices. They expect—and deserve—high-quality care and communication for this investment.
13. 52% of centers increased prices by 5% or more in the past year
More than half of childcare centers (52%) implemented price increases of 5% or more in the past 12 months, with 18% increasing prices by 10% or more. Only 12% held prices flat. (Source: National Child Care Association Survey, 2025)
What this means for you: Annual price increases are industry-standard. Centers that don’t adjust pricing fall behind on wages and quality.
Parent Behavior and Preferences Statistics
Understanding how parents search, evaluate, and choose childcare helps you meet their expectations.
14. 89% of parents start their childcare search online
89% of parents begin their childcare search online, with Google searches and childcare directories (Care.com, Winnie) being the most common starting points. Only 11% start by asking friends or family first. (Source: Care.com, 2025)
What this means for you: Your online presence is critical. If you’re not visible in local Google searches, parents won’t find you. Check out our guide to daycare marketing strategies for actionable tips.
15. Parents visit an average of 3.2 daycares before enrolling
Parents tour an average of 3.2 childcare centers before making their final decision. First-time parents tour more (3.8 centers) while experienced parents tour fewer (2.6). (Source: Childcare Resource Center, 2025)
What this means for you: You’re competing in every tour. Make each visit memorable, address concerns proactively, and follow up systematically.
16. 78% of parents choose the first center that responds helpfully
78% of parents enroll their child at the first daycare that provides a helpful, informative response to their inquiry—not necessarily the first to respond, but the first to actually help. (Source: Care.com Parent Survey, 2025)
What this means for you: Speed and quality of response both matter. Answering quickly with vague information loses to answering second with genuine helpfulness. Learn how to master this with our daycare inquiry scripts guide.
17. 67% of parents prefer phone calls for initial contact
Despite digital convenience, 67% of parents prefer to call when first reaching out to a daycare. Only 22% prefer online forms, and 11% prefer email. (Source: Childcare Marketing Solutions, 2025)
What this means for you: Phone answering capability is essential. Missed calls equal missed enrollments.
18. Safety and cleanliness are the #1 factor for 84% of parents
When asked their top priority, 84% of parents rank safety and cleanliness first, followed by teacher qualifications (71%), curriculum/learning (68%), and location convenience (54%). Cost ranked fifth at 48%. (Source: National Association for the Education of Young Children, 2025)
What this means for you: Lead with safety messaging in your marketing. Visible cleanliness protocols and security measures influence parent decisions more than price.
Staffing and Workforce Statistics
The childcare workforce crisis directly impacts your ability to operate. These statistics reveal the challenges.
19. Childcare worker turnover averages 26% annually
The childcare industry experiences 26% average annual turnover, meaning one in four workers leave their positions each year. This rate is 2.5x higher than the overall U.S. workforce average. (Source: U.S. Bureau of Labor Statistics, 2025)
What this means for you: Retention strategies pay dividends. Every departing employee costs $3,000-$5,000 to replace (recruiting, training, lost productivity).
20. Median childcare worker wage is $14.60 per hour
The median hourly wage for childcare workers is $14.60 ($30,368 annually), though lead teachers and directors earn more. This is 23% below the national median wage for all occupations. (Source: U.S. Bureau of Labor Statistics, 2025)
What this means for you: Wage pressure continues. Centers that can pay above-median wages attract better candidates and reduce turnover.
21. 76% of centers report staffing shortages
More than three-quarters of childcare centers (76%) report operating with fewer staff than they’d like, with 34% describing shortages as “severe.” (Source: National Association for the Education of Young Children, 2025)
What this means for you: Staffing is likely your biggest operational constraint. Creative recruiting, competitive benefits, and supportive culture differentiate employers.
22. 59% of centers have reduced enrollment due to staff shortages
59% of childcare centers have been forced to reduce enrollment or close classrooms due to inability to hire and retain enough qualified staff. This leaves parent demand unmet and revenue on the table. (Source: Child Care Aware of America, 2025)
What this means for you: Solving staffing challenges unlocks growth. Consider partnerships with early childhood education programs and apprenticeship initiatives.
Technology and Operations Statistics
Technology adoption is reshaping how successful daycares operate.
23. 72% of centers use childcare management software
72% of licensed childcare centers now use dedicated childcare management software (Brightwheel, HiMama, Procare, etc.) for attendance tracking, parent communication, and billing. (Source: Childcare Technology Survey, 2025)
What this means for you: Management software is now expected, not optional. Parents expect digital check-in, photo updates, and online billing.
24. Centers using parent apps see 34% higher satisfaction scores
Childcare centers that actively use parent communication apps report 34% higher parent satisfaction scores and 28% higher retention rates compared to centers relying on paper notes and verbal updates. (Source: Brightwheel Customer Research, 2025)
What this means for you: Real-time communication through apps builds parent confidence and reduces anxiety. Daily photos and activity updates keep families engaged.
25. 41% of parent inquiries happen outside business hours
41% of all childcare inquiries—phone calls, form submissions, and emails—arrive outside standard business hours (before 8 AM, after 6 PM, or on weekends). (Source: Care.com Analytics, 2025)
What this means for you: If you only capture inquiries during business hours, you’re missing 41% of opportunities. AI receptionists for daycares answer calls 24/7, ensuring every inquiry gets a helpful response—even at 9 PM when working parents finally have time to research childcare.
How to Use These Statistics
Data is only valuable if you act on it. Here’s how to apply these daycare industry statistics to your business:
For Pricing Decisions
- Compare your rates to regional averages (Statistic #9, #11)
- Plan for annual increases matching industry norms (Statistic #10, #13)
- Communicate value when raising prices—parents understand costs are rising
For Marketing Strategy
- Prioritize your online presence—89% search there first (Statistic #14)
- Ensure fast, helpful inquiry response (Statistic #16)
- Lead with safety messaging in all marketing (Statistic #18)
- Make tour experiences exceptional—you’re competing against 2-3 others (Statistic #15)
For Operations Planning
- Budget for 25%+ staff turnover (Statistic #19)
- Invest in technology parents expect (Statistic #23, #24)
- Capture after-hours inquiries with technology (Statistic #25)
- Plan for summer enrollment dips (Statistic #8)
For Staffing Strategy
- Benchmark wages against local and national data (Statistic #20)
- Focus on retention—turnover is expensive (Statistic #19)
- Recognize that staffing limits growth for most centers (Statistic #21, #22)
For Growth Planning
- The market is growing—invest with confidence (Statistic #1, #2)
- Infant care has highest demand despite challenges (Statistic #6)
- Demand exceeds supply in most markets (Statistic #7)
Frequently Asked Questions
What is the average cost of daycare in the United States?
The average cost of daycare in the United States is $321 per week ($16,692 annually) for center-based care, according to Care.com’s 2025 Cost of Care Survey. However, costs vary significantly by location and age group. Infant care averages $376 weekly nationally, while preschool care averages $289 weekly. States like Massachusetts and California have costs 40-50% above the national average.
How big is the daycare industry in the US?
The daycare and childcare services industry in the United States is worth $60.4 billion annually as of 2026, according to IBISWorld. The industry includes approximately 675,000 establishments ranging from home-based family childcare to large corporate centers. Center-based facilities represent 58% of total industry revenue, with the market projected to grow 4.2% annually through 2030.
What percentage of children are in daycare?
Approximately 60% of U.S. children under age 5 are in some form of regular childcare arrangement, according to the National Center for Education Statistics. This represents about 12.3 million children. The percentage varies by age, with infants having lower participation rates than toddlers and preschoolers due to parental leave patterns and care availability.
Why is there a childcare shortage?
The childcare shortage results from staffing challenges, not lack of parent demand. According to NAEYC, 76% of centers report staffing shortages, with childcare worker turnover averaging 26% annually. Low wages (median $14.60/hour) and demanding work conditions make recruitment difficult. As a result, 59% of centers have reduced enrollment or closed classrooms despite having families on waitlists.
How much do daycare owners make?
Daycare owner income varies widely based on business size, location, and operational efficiency. According to industry surveys, single-location daycare owners typically earn $40,000-$80,000 annually after all expenses, while multi-location operators can earn $150,000-$300,000 or more. Home daycare providers typically net $25,000-$50,000. Profitability depends heavily on maintaining high enrollment, controlling labor costs, and minimizing turnover.
What are the biggest challenges facing daycares in 2026?
The biggest challenges facing daycares in 2026 are staffing shortages (reported by 76% of centers), rising operational costs, and maintaining enrollment during seasonal fluctuations. Workforce issues dominate—the industry experiences 26% annual turnover, and median wages remain 23% below the overall workforce average. Secondary challenges include technology adoption, increasing parent expectations, and managing after-hours inquiries.
Conclusion
These 25 daycare industry statistics paint a clear picture: the childcare market is large, growing, and underserved—but success requires data-driven decision making. Demand for quality childcare remains strong, yet staffing challenges constrain most centers’ ability to grow.
Key takeaways from the data:
- The market opportunity is real — $60.4 billion industry growing 4.2% annually with 73% of parents struggling to find care
- Pricing requires strategy — costs rose 32% since 2019; annual increases are industry-standard
- Parent behavior is predictable — 89% search online, 67% prefer phone calls, 78% choose the first center that truly helps
- Staffing is the critical constraint — 26% turnover and 76% reporting shortages
- Technology is expected — 72% use management software; 41% of inquiries arrive after hours
Armed with these statistics, you can make confident decisions about pricing, marketing, staffing, and operations. The daycares that thrive are those that combine quality care with smart business practices.
Ready to capture 100% of parent inquiries—including the 41% that arrive after hours? Book a demo to see how AgentZap’s AI receptionist answers daycare calls 24/7, provides helpful information, and schedules tours automatically.