Staffing is the binding constraint across much of the industry. It shapes margins, enrollment capacity, and — ultimately — the value of the building.
Demand isn't the problem — staff is
Across the sector, the limiting factor is increasingly labor, not demand. The economics are brutal: childcare workers earn a median wage around $14.60 an hour — less than many retail or food-service jobs — and the sector has shed roughly 8% of its workforce since 2020. Industry groups have reported the large majority of centers understaffed.
A center that can't fully staff its classrooms can't enroll to capacity — which caps revenue regardless of how strong local demand is. When grant-funded wage support lapsed after 2023, turnover pressure intensified just as families returned.
Why it matters to a buyer
An investor underwriting a center looks at whether staffing supports full enrollment now and going forward. A stable, tenured team is an asset; chronic vacancies are a risk to the rent.
Operators with brand, scale, and wage competitiveness manage this better — one reason platform operators command stronger lease economics.
Positioning around it
If your center has stable staffing and a strong director, that operational durability is part of your value story. If staffing is a challenge, addressing it before a sale can lift both enrollment and price.
We help owners frame operational strengths the way sophisticated buyers underwrite them.
Find out what your school is worth.
A confidential, no-pressure valuation from a broker who has owned, operated, and sold childcare centers for 30+ years.
