San Mateo County has made significant strides in expanding child care access, thanks to public support and Build Up SMC's leadership. However, gaps remain in meeting demand.

• Child care demand met for children ages 0-12 increased from 67% in 2017 to 94% in 2024.

• Preschool spaces have grown significantly, but infant/toddler care only meets 69% of demand and school-age care only meets 74% of demand.

• Families continue to face barriers to affordable, accessible care.

Shifting workforce patterns, COVID-19 disruptions, and the expansion of Transitional Kindergarten (TK) are among the factors that have reshaped the child care landscape with the following impact:

• Increased demand for infant and toddler care

• Ongoing need for after-school programs

• Greater need for flexible and nontraditional care options

• Rising facility costs

• Persistent workforce shortages

• More focus on safe, healthy and climate-resilient environments

Existing conditions have led to critical challenges:

• Shortage of infant/toddler spaces: 1,403

• Shortage of school-age spaces: 7,501 

• Average annual child care cost for toddler or preschooler: $48,000 (7x federal affordability guideline)

• Percentage of eligible families with access to subsidized child care: 45%

• Families are scaling back work hours, quitting jobs, and turning down promotions because of lack of affordable, reliable child care

Providers face a costly and complex  process to establish and operate. 

• Expensive and complicated start-up and operations

• Difficulty finding affordable space due to high real estate costs

• Complex regulatory, financial, and licensing requirements

• High construction costs—new child care space averages $50K per child and rises 8–10% annually

• Lost public funding—San Mateo County turned down over $1 million due to lack of facilities