America has a $172 billion child care problem. Investors are overlooking part of the solution

The American child care crisis costs the economy an estimated $172 billion each year due to lost earnings, productivity, and tax revenue. Licensed child care supply frequently falls far short of demand in many communities, with nearly half of young children living in such areas. The ramifications of this shortage extend beyond child care centers and into the workforce, as 59% of part-time or non-working parents said they would return to full-time work with access to quality child care at a reasonable cost.

Meanwhile, 52% of voters reported missing shifts or reducing working hours due to child care problems. This issue is both an affordability and a supply problem, with operators experiencing difficulty finding the necessary land, buildings, and investment to expand. While financial assistance can help families pay for a seat, it cannot create a classroom where one does not exist.

The child care sector has historically been overlooked in investment circles due to its specialized nature, requiring investors to understand land, buildings, and capital. As e-commerce and artificial intelligence continue to drive investment in other sectors, the time has come for early childhood education to gain the attention it deserves.