Childcare costs for two children in Philadelphia exceed rent, with both expenses continuing to rise.

In the Philadelphia area, the financial burden of childcare has emerged as a critical concern for families, with the average monthly cost of care for a single child reaching 1. This figure, highlighted by a recent report from the online real estate brokerage Redfin, underscores the challenging economic landscape facing parents in the region, as these expenses often surpass the typical cost of renting a home. As of March 2025, median monthly rent in the Philadelphia area was documented at ,885, illustrating the financial pressures on families tasked with balancing housing costs alongside childcare.

The report reveals an alarming statistic: the combined expenses of rent and daycare for two children can absorb an astonishing 61% of the local median income. Such a significant allocation of resources raises concerns about financial stability for households where both essential needs must be met. Experts have noted that when families find themselves devoting half of their income to rent and childcare, they face difficult trade-offs, often leaving little for other necessities such as groceries and bills. This scenario creates a precarious financial situation, prompting many families to rethink their options regarding parenthood amid soaring costs.

Amid increasing childcare and housing costs, the inflation rate for daycare services outpaced general inflation from 2019 to 2023, with childcare costs projected to rise by an estimated 3.3% from 2024 to 2025. Concurrently, local rental prices experienced a year-over-year increase of 2.4%. The demand for childcare is also significantly impacted by pandemic-related challenges, resulting in staff shortages as well as the closure of numerous centers and extended waitlists for families seeking care.

Redfin’s extensive review analyzed 20 metropolitan areas, finding Philadelphia among seven cities where rental costs have continued to escalate. In this analysis, it was noted that the expenses associated with sending two children to daycare have overtaken monthly rental prices in 14 of these cities.

While it is acknowledged that childcare is a temporary need—often transitioning to public schooling systems which commence at kindergarten—this does not eliminate all associated costs. Public elementary schools typically release students between 2 p.m. and 4 p.m., creating a gap where parents must still find care, especially during summer breaks. Furthermore, data from the Department of Labor suggests that center-based care for school-age children in Philadelphia could average approximately ,000 annually in 2024, perpetuating the financial strain on parents.

As the landscape of childcare and housing costs continues to evolve, addressing these challenges will require innovative solutions and collaborative efforts from policymakers, service providers, and community organizations to alleviate the burdens faced by families in Philadelphia.