A report by the 5Boro Institute reveals that over 80% of families in New York City are unable to afford childcare, a challenge exacerbated by the closure of childcare providers.
The think tank’s report, released on Tuesday, February 26th, urges Mayor Eric Adams’ administration to tackle this escalating affordability crisis, which is prompting many young families, particularly Black families, to relocate from the city.
The childcare affordability crisis, as outlined in the report, is particularly affecting young families, with a significant impact on Black communities, prompting them to relocate in search of more sustainable living conditions.
This crisis emerges amid escalating rent and eviction rates, a spike in child poverty, and a social safety net plagued by inefficiencies and limited reach.
Grace Rauh, the institute’s executive director, stressed the critical role of accessible and affordable childcare in the city’s future, stating, “The future of our city depends on the availability of affordable, high-quality childcare.”
The report underscores the financial burden placed on families, with childcare expenses surpassing other essential costs such as rent or mortgage payments.
Federal guidelines suggest that childcare should not cost more than 7% of a household’s income for one child, yet in areas like Queens and the Bronx, these expenses consume a substantial portion of family incomes, leading to major sacrifices and career adjustments, particularly among mothers.
The economic ramifications are profound, with the city’s Economic Development Corporation estimating a $23 billion impact due to reduced disposable income and tax revenues as parents exit the workforce or scale back their careers.
Jessica Walker, President and CEO of the Manhattan Chamber of Commerce, highlighted the broader economic implications, stating, “Access to affordable childcare is critical for today’s workforce; without it, we risk losing the top talent we need to grow our local economy.”
The scarcity of childcare options further compounds the problem, with the demand far outstripping the supply of licensed childcare slots.
The state has witnessed the closure of over 3,500 childcare programs between 2020 and 2022, a trend that continues to affect small businesses predominantly owned by women and people of color.
The childcare workforce has also seen a 20% reduction during the pandemic, with a quarter of these workers living in poverty.
To address these challenges, the 5Boro Institute urges the city to prioritize staffing in the childcare sector, simplify provider operational procedures, and expand access to free and low-cost childcare services.
The institute also advocates for better integration of families into publicly funded programs, irrespective of their immigration status, as a means to alleviate the pressures faced by New York City families in securing affordable childcare.
