Building Homes, Building Childcare

Sasha Nicholas
Manager, Policy and Programs, Early Childhood Education

Makinzi Hoover
Senior Manager, U.S. Chamber of Commerce

Published

October 14, 2025

This is the second article in Common Threads, our series exploring how childcare intersects with other national issues — this time focusing on America’s housing challenges. Across our networks at the U.S. Chamber of Commerce Foundation, we hear a consistent refrain from working parents and employers alike: the cost and availability of housing and childcare are twin barriers to a stable workforce. When families can’t secure an affordable place to live and reliable care for their children, our communities and economy feel the strain. It’s clear that when we talk about workforce shortages or economic growth, we’re also talking about housing and childcare.

Housing and Childcare: A Twin Challenge for the Workforce

For families, housing and childcare are often the two largest monthly expenses — and they’re rising in tandem. The combination can be financially crushing and logistically daunting, forcing working parents into difficult trade-offs. How difficult? Consider these facts and figures:

High-cost burdens: In 31 of the 50 largest U.S. cities, a typical family would need to spend over 60% of its income on housing and childcare. In some regions, these two expenses even exceed 100% of a median family’s income, making it virtually impossible for parents to make ends meet without cutting other essential expenses.

Families on the edge: In Sonoma County, Calif., as much as 70% of a family’s income can be consumed by housing and childcare costs. Nationwide, nearly half of renters spend more than 30% of their income on housing, while many parents live in “childcare deserts” with few affordable options.

Impact on work: When housing or childcare is unavailable or unaffordable, parents are often forced to leave the workforce or scale back. More than two-thirds of parents in one survey said childcare challenges affected their ability to stay in their job or work more hours. The same holds true for housing, if workers can’t find housing near their jobs, employers lose talent or see productivity hit by long commutes.

The bottom line: housing and childcare aren’t just personal family issues — they are business and economic issues. If a young family is paying over half of their income on rent or mortgage and childcare, that family has little room for emergencies, savings, or spending in the local economy. If a qualified job candidate turns down a position because they can’t find an affordable home or childcare nearby, that’s a lost opportunity for the business. These intertwined challenges help explain why many communities face labor shortages even when jobs are plentiful.

Business and Community Partnerships Leading the Way

The good news is that leaders across the business community are stepping up with innovative solutions. Employers, local chambers of commerce, and public-sector partners are recognizing that solving housing and childcare together can unlock workforce participation and community prosperity. Here are a few examples of how they are leading the way:

Santa Rosa, California – Building homes with childcare on-site: In downtown Santa Rosa, a new mixed-use development is bringing housing and childcare under one roof. Although construction is currently on hold due to financing and material costs, the project remains a strong example of how local chambers can shape outcomes. “Adding an eighth floor was only possible through the city’s new policies in support of childcare development,” said Ananda Sweet, CEO of the Santa Rosa Metro Chamber. “Without that, it wouldn’t have penciled out. Those zoning and permitting reforms, championed by the Santa Rosa Metro Chamber, ensure future projects can better integrate childcare capacity into their design.” Recent modeling shows that co-locating 52 childcare slots with downtown housing could generate 36 jobs, $3.36 million in GDP, and $1.78 million in household income each year.

Big Sky, Montana – A community tackles affordability: In the resort community of Big Sky, local businesses, nonprofits, and officials formed a “Livability” task force to address the dual crisis of housing and childcare costs. Big Sky’s economy relies on hospitality and service workers who increasingly can’t afford to live in the area. Through the Elevate Big Sky initiative, employers, public officials, and philanthropists have funded workforce housing programs and expanded childcare options. The community’s data painted a stark picture: the average Big Sky family with young children spends 16% of their income on childcare, while the town has zero long-term rental vacancies. In response, Big Sky leaders invested in a Big Sky Community Housing Trust and a Good Deeds program to secure more local housing for workers. They also convened a childcare task force that produced an action plan to increase capacity and affordability, with local employers actively engaged in solutions. This kind of cross-sector commitment — from Big Sky resort owners to community foundations to small businesses — shows how even a small community can innovate to keep working families living and thriving locally. As Matt Kidd, president of Lone Mountain Land Company, puts it:

“Housing and childcare are the foundation of a thriving community. In Big Sky, we’re proving that when businesses, nonprofits, and local leaders work together, even a small community can deliver big solutions — helping individuals live and raise families in the community where they work.”

Grand Rapids, Michigan – A developer reimagines what home can include: An innovative example from West Michigan shows the private sector’s role in bridging housing and childcare. Magnus Capital Partners, a housing developer, launched a pilot program to include an on-site early childhood education center at its new apartment complex. The first HōM Flats development in Grand Rapids now features Grō Childcare Academy, adding roughly 120 childcare slots available to residents and the surrounding community. This model – integrating affordable homes with a childcare facility – is a win-win, offering working parents convenient access to quality childcare just steps from their front door. Building on its success, the developer plans to expand on-site childcare to future housing projects, demonstrating how businesses can creatively invest in community needs while attracting and retaining talents.

Salt Lake City, Utah – A business-driven model that merges homes and childcare: In Salt Lake City, Utah, the SPARK development co-locates housing and childcare through a $99 million public-private partnership. Spearheaded by Brinshore Development in collaboration with the Salt Lake City Community Reinvestment Agency and private financial partners like Goldman Sachs and City Community Capital, the mixed-use complex offers 200 mixed-income apartments — including deeply affordable units for families earning as little as 20-30% of the area median income — alongside a high-quality education center operated by the nonprofit, Neighborhood House. The majority of these projects typically separate housing from childcare, but SPARK shows that housing developers can deliver a community where working families have both secure homes and accessible care in one place. This innovative public-private partnership exemplifies how the business community — through investment, design, and collaboration — can strengthen workforce readiness and family stability.

Each of these examples share a common thread: collaboration. Whether through creative public-private partnerships or brick-and-mortar solutions, the private sector is showing that it has a pivotal role to play. Companies and chambers are leveraging their convening power and resources to bring housing and childcare within reach for more families. These efforts not only help parents and children but also strengthen local economies by enabling more people to participate fully in the workforce.

A Cross-Sector Call to Action

No single sector can solve the dual crisis of housing and childcare alone. It’s going to take all of us — employers, community leaders, and policymakers — working together with a shared purpose. We must bridge silos between initiatives and pursue creative partnerships that put families first. By aligning investments in affordable homes and quality childcare, we strengthen our workforce, stabilize families, and fuel economic growth. The call to action is simple and urgent: step up, collaborate, and be part of the solution. Together, we can turn these intertwined challenges into opportunities — building stronger families, communities, and economies.

Additional Resources:

Common Threads: “Mission: Childcare” (Blog Series) – U.S. Chamber Foundation’s inaugural article exploring childcare and military family readiness.

“The State of Housing in America” – U.S. Chamber of Commerce report (March 2025) on the 4.5 million home deficit and its impact on affordability and workforce mobility.)