Intersection and Impact of Childcare and Housing

Intersection and Impact of Childcare and Housing 

Childcare is central to the economic stability of families, and so is housing.  The rising costs of both create significant burdens on households, often consuming substantial portions of incomes and placing many out of the workforce. Integrating social services with affordable housing initiatives is a promising solution to alleviate these challenges.

The Intersection of Housing Affordability and Childcare Costs

Housing is affordable if it costs less than 30% of a household's income. But is this standard measure reasonable or accurate in today’s world? Perhaps not. When it was developed, it excluded essential expenses like childcare and transportation. Adding these costs, families paying 30% for housing also find that childcare can cost $1,200 a month per child. Families in 2024 paid between 8.9-16.4% on daycare. This financial strain reduces resources available for other critical needs, underscoring the need for refined affordability measures for housing. How might integrating social services, like childcare, provide a means to more accessible housing?

Integrating Social Services with Affordable Housing

Combining social services, such as childcare support, with affordable housing offer many advantages. First is accessibility. On-site or close social services offer residents easier access to resources. It also increases the likelihood that parents will participate in the workforce, improving families' economic circumstances. Interestingly, it also strengthens community bonds since residents can access support systems and build relationships. Living close to childcare provides stability and being close to other families builds a community. These are foundational to the community. 

How do we support Social Services Integration? Policy and Collaboration 

Policymakers, community leaders, and nonprofits face a number of administrative barriers to providing this type of social service. One way to build the infrastructure is to create partnerships between housing developers and childcare providers who offer support systems to families. Additionally, expanding programs that assist with childcare costs can reduce financial burdens, making it easier to afford housing and other necessities. We have to reevaluate affordability metrics to include childcare and transportation. Without these costs, we cannot accurately picture a family's financial needs and to be able to design assistance, we need a clear picture.

Success Story and Moving Forward 

Painting a picture of a family with childcare and affordable housing that flourishes into a thriving community helps reinforce our commitment to integrating child care and housing. One community, the Guadalupe Neighborhood Development Corporation in Austin, TX, partnered with a local preschool to increase access to early learning and create affordable rental homes for families in underserved neighborhoods. They won a sustainability innovation challenge in 2020 held by Fannie Mae. This initiative's success underscores that child care and housing can help put families on a pathway to economic mobility and improved health outcomes, yet for too long, these issues were approached separately.

Addressing the challenges of housing and childcare affordability requires an integration of social services with housing initiatives. What are your thoughts on housing affordability and childcare? Let us know!