BALTIMORE — Each day American families face tough choices.
For many parents, their top priority is finding affordable quality childcare.
A close second is saving for college tuition.
While both options have always been pricey, some were lucky enough to make ends meet.
Now, according to a new study, that's becoming less possible.
The Economic Policy Institute is out with a new study revealing annual childcare costs in Maryland surpassing college tuition rates.
In Maryland, the Median family income is $121,329.
The Economic Policy Institute found a year's worth of childcare for a 4-year-old costs around $13,355.
For an infant, it's even more money — $18,946.
In comparison, in-state tuition for a four-year public college averages out at $10,214. That's 85.5 percent less than taking care of just one infant.
Broken down, that means childcare for one infant costs $1,579 per month, which makes up an astounding 15.6 percent of a Maryland family's yearly income.
To put it even more into perspective, infant care in Maryland costs just 9 percent less than average rent.
The U.S. Department of Health and Human Services (HHS), suggests affordable childcare should cost no more than 7 percent of a family’s income.
By that standard, only 13.8 percent of Maryland families can afford infant care.
Imagine how thinly stretched families are having to pay childcare for an infant and 4-year-old.
In total it would cost $32,301 — more than 35 percent the price of rent — equaling 26.6 percent of a family's annual income.
And that's just for median income families. What about those earning minimum wage?
Currently Maryland's full-time minimum wage equates to $31,200, meaning nearly 61 percent of their yearly income would go towards childcare for one infant.
They'd need to work full time for 32 weeks, just to pay the $18,946 of what it would cost to care for that child.
Take Montgomery County for example, which pays a statewide high minimum hourly wage of $17.15 — it still would take 28 weeks of full-time work to cover childcare costs for a single infant.
When it's all set and done, the Economic Policy Institute ranks Maryland 11th out of 50 states and the District of Columbia for most expensive infant care.
If that weren't enough, a separate study conducted by Cinch Home Services found Maryland rent prices jumped fifth most in the nation, by 7.56 percent, from 2023 to 2024 ($1,448.45 to $1,557.92 per month).
According toGo Banking Rates, Maryland beat out Hawaii and California requiring a minimum annual income of $158,126 to even be considered upper middle-class.
