The State of Supply and Demand for Childcare in Montgomery County, MD

The Montgomery County Government commissioned Reinvestment Fund’s Policy Solutions team to study the early childhood education landscape across Montgomery County, Maryland. Together with a diverse group of stakeholders, the Policy Solutions team identified gaps in access and developed strategies to address the needs of children, families, and providers. The analysis includes a review of jurisdictional child care supply and demand as well as a focus groups and countywide surveys of parents and providers.

The resulting study provides a comprehensive view into the early childhood education market in Montgomery County. The analysis shows how childcare costs drive many family decisions around childcare, and found a particular shortage of infant and toddler care across the county. Our conversations with providers revealed many businesses are struggling financially but looking for opportunities to grow and better serve the families in their community.

This study was created with funding from Montgomery County Government, through the Montgomery County Early Care and Education Initiative (ECEI).

Key Findings:

1. The analysis reveals a specific need for more infant and toddler capacity across Montgomery County. The county has enough preschool seats to serve roughly 83% of the children between the ages of two and five, but only enough infant and toddler seats to serve 19% of the children under two.
2. Focus groups and surveys revealed that the cost of childcare is a challenge for families across the income spectrum and affordability drives many of the choices that families make about where and how to care for their children.
3. Many county childcare providers are struggling financially. According to our survey of county providers, the average program had a 26% vacancy rate. Childcare is a consumer-driven industry and the preschool classrooms that have the highest financial margins for providers are also the most competitive.
4. Childcare shortages affect every community across the county. Large childcare shortages exist in high income, moderate income, and low income across. Similarly, shortages impact White, Black, Hispanic, and Asian communities.