The FWD #234 • 673 words

Housing cost burden isn’t the only burden we bear.

For many Virginia families, the combined weight of housing and child care costs is crushing their financial stability. The solution may be closer than we think.

It’s a harsh reality across America: the two most essential needs for working families with children—a stable home and quality child care—have become the two largest financial burdens. For low-income families, this double squeeze isn’t just uncomfortable—it’s unsustainable.

The Numbers Tell a Crushing Story

Child care now costs more than rent or mortgage payments in all 50 states. According to recent data from Child Care Aware of America, the average cost of child care for two children exceeds the average rent in every state and surpasses mortgage payments in 45 states, with differences ranging from 0.05% to 78% higher than housing costs.

The Department of Health and Human Services considers child care “affordable” if it costs no more than 7% of a household’s income. Yet the typical cost for one child averages 10% of income for married households and a staggering 32% for single parents.

This crisis is particularly acute in Virginia, where our shortage of affordable housing units continues to grow while child care costs rank among the highest in the nation. A study conducted by the Joint Legislative Audit and Review Commission (JLARC) found that most child care costs in Virginia exceed 10% of the median income for both one- and two-adult households, with one-adult households exceeding 20%.

When “Work to Live” Becomes “Live to Work”

These twin burdens create impossible choices. Parents—particularly mothers—are forced to decide whether working makes financial sense when child care consumes most of their paycheck. A 2021 Pew survey found that finances were the third-most common reason people chose not to have children, after just not wanting them and medical reasons. The JLARC study further highlights the impact of lack of affordable and available childcare on local economies:

“Staff at local departments of social services… and other relevant stakeholders reported the high cost of child care has led some parents to stop working to take care of their children because the cost of child care does not leave them with sufficient income to afford their other expenses.”

While Head Start survived the chopping block, the child care crisis in Virginia and across the nation still remains. But the demand for child care isn’t the only issue. The child care workforce faces its own affordability crisis. Workers in child care centers earn an average of just $30,360 per year, making it nearly impossible for them to afford housing in the communities where they work. Medicaid cuts will worsen the situation for child care professionals. In Virginia, nearly a quarter of child care workers were covered by Medicaid in 2023.

Housing and…

While policymakers often address housing and child care separately, innovative solutions are emerging that tackle both challenges simultaneously.

Co-locating affordable housing and child care facilities offers a particularly promising approach. Several cities and counties have launched initiatives that combine these essential services under one roof—literally.

The Bipartisan Policy Center highlighted this approach in a recent report: “Under One Roof: Combining Affordable Homes with Child Care Solutions”.

Benefits of co-location include:

• Eliminating transportation barriers between home and child care
• Creating built-in community and support networks for families
• Providing stable enrollment for child care providers
• Reducing overall development costs through shared infrastructure
• Improving accessibility of both services for low-income families

Virginia has seen few examples of this strategy. But one worth highlighting is True Ground Housing Partner’s Unity Homes at Ballston in Arlington. And the YWCA of Richmond is currently working to bring these two community needs together in Henrico.

Child Care is an Affordable Housing Issue

For Virginia’s working families, affordable housing and affordable child care aren’t separate issues—they’re twin pillars of economic stability that stand or fall together.

By recognizing these interconnections and developing holistic solutions like co-located services, Virginia can lead the way in addressing the affordability crisis facing families across the Commonwealth.