Recent research from the Mitchell Institute at Victoria University uncovered a significant challenge for Australian families: limited access to childcare.

For instance, according to the study, 28% of New South Wales residents live in“ childcare deserts”, where more than three children compete for each available childcare spot.

As the map below shows, these shortages hit lower-income communities the hardest. Areas in red have the least access to childcare, while areas in blue have the best availability.

 

Childcare access mirrors property prices

Sydney’s childcare shortages appear to follow property prices.

For example, Artarmon – where the median house price is $2,792,500 (according to Domain’s December 2024 quarter house price report) – had the second-highest childcare access, with 0.829places per child.

By contrast, Bathurst Surrounds, with a median house price of $633,500, had the second-lowest access at just 0.002places per child.

The research suggests many childcare providers prioritise wealthier areas, where higher fees help maximise revenue. This leaves families in more affordable suburbs struggling to access childcare, often forcing one parent to reduce work hours or take on extra travel costs.

An opportunity for childcare operators

While this presents a challenge for families, it’s also a business opportunity for childcare operators.

By opening high-quality childcare centres in underserved areas, operators can meet a critical need while tapping into strong demand.

Accessible childcare not only supports working families but also fuels local economic growth by enabling more parents to stay in the workforce.

Government assistance

Additionally, childcare operators may qualify for government grants that help set up childcare services in undersupplied areas. There are several grants facilitated by the NSW state government that help in the setting up and running of childcare facilities in priority areas.

The federal government also operates the Child Care Subsidy, which assists parents in covering the cost of child care. This is paid directly to you, the service provider, helping with the day-to-day costs of running the facility.

Financing your childcare centre

Expanding into a high-demand area requires the right financing. Whether you’re buying an existing centre, building a new facility or renovating a space, different loan options are available, including commercial property loans, fit-out loans, and working capital finance.

Lenders assess factors like your location, demand, experience and projected revenue when approving finance. Government grants and subsidies can also strengthen your application.

A specialist mortgage broker – like Ligo Finance – can help you navigate loan options, secure competitive rates, and access government support.

If you're considering expanding or opening a childcare centre, securing the right financing is key. Our team of expert mortgage brokers can help you find tailored loan solutions. Contact Ligo Finance today.