Child-care and early education real estate is no longer a niche; it’s a core asset class attracting major investment. With strong growth projections, favorable lease structures, and critical social importance, the sector is set to remain a top choice for real estate investors seeking stability and long-term value. A fast-growing niche in real estate is drawing major investments: properties dedicated to child care and early education. The sector, once overlooked, is now seen as a strategic asset class due to rising demand and strong government support.
Market Value and Growth
The U.S. child-care market is currently valued at $65.2 billion and is projected to reach $109.9 billion by 2033, according to CRE brokerage B+E and Grand View Research. This growth is fueled by parents returning to offices, advancements in educational technology, and increased government funding, especially for single and working mothers. The sector is considered structurally underbuilt, making it a rare opportunity for investors seeking stable, long-term returns.
Real Estate Investment Trends
Since the end of 2024, the number of early education properties available for sale has risen by 14%, reaching 158 listings, as reported by B+E. Many child-care operators, including large national chains like KinderCare and The Learning Experience, use net lease structures, where tenants cover property taxes, insurance, and maintenance costs. This arrangement is attractive to investors because it offers predictable, long-term income streams and reduces landlord risk.
Investor Appeal
Big institutional investors and private equity firms are increasingly allocating capital to child-care real estate. The sector is now viewed as essential infrastructure, similar to medical offices or logistics hubs, due to its direct impact on labor-force participation and economic growth. Properties in “child-care deserts”, areas with limited access to facilities, are especially attractive, as developers look to fill gaps created by pandemic-era migration patterns.
Government and Social Factors
Government programs have expanded funding for early education, especially for underserved communities and working families. This support, combined with a persistent shortage of child-care capacity, has made the sector a priority for both public and private investment. The result is a robust pipeline of new facilities and a surge in property values for early education real estate.
Credit – cnbc.com
