"Nobody likes to acknowledge that child care providers are overregulated. After all, regulations are needed to ensure the health and safety of children. But overly burdensome regulations that have little to do with child safety or quality of care can drive up costs and drive out potential child care providers from the market, both of which contributes to the current crisis of access and affordability.
This is exactly what has happened in recent years. A 2019 report found that the number of small family child care providers (one person caring for children in his/her own home) declined by 35 percent from 2011 to 2017. The number of large family child care providers (two or more people caring for children in their own home) declined by 8 percent, and the number of child care centers by two percent. Unsurprisingly, during this same time child care licensing requirements increased dramatically."