How Free Housing Helps Keep Childcare Affordable

Eric Gil, a student from the Dominican Republic, chose early childhood education. He was the oldest of three brothers. He had always liked helping kids. He admired professors at Southern Connecticut State University. Teaching felt like a calling. In 2023, he started an internship at Friends Center for Children, a preschool in New Holden, Connecticut.

A preschool teacher in Connecticut earns about $31,000 a year. A one‑bedroom apartment in New Holden costs about $2,100 a month. To save money, Gil lived with relatives in Waterbury and drove an hour each way. The long commute made studying and teaching hard. Many staff at the center also commuted long distances, and some had no stable home at all.

The center’s director, Allyx Schiavone, found the problem in 2020 after surveying staff about their living situations. None of the teachers owned a home, and several were even couch‑surfing. Rent was the biggest monthly expense for the staff. “We had no idea because these same women were showing up and taking care of other people’s children in the most professional and authentic and incredible way,” Schiavone said. “It was obvious from that survey that the most powerful action we could take was to provide housing.”

Raising salaries seems simple. But it is a recurring cost. Most early‑education providers would have to raise tuition for families. The $31,000 salary barely covers basic expenses. When rent, utilities, food, and transportation are added, many teachers live paycheck to paycheck.

Buying a home works differently. Instead of adding money to each payroll, Friends Center can invest in real estate that stays on its balance sheet, builds equity, and appreciates over time. Friends Center pays about $40,000 in annual property taxes on its six homes, which provide 12 housing units. Even after taxes, insurance, maintenance, and repairs, the economics remain attractive. The center also covers routine repairs, so teachers don’t worry about bills. The homes are owned by the center, so the cost is spread over many years. The six homes are in a mixed‑use neighborhood that offers easy access to public transit, grocery stores, and parks, making daily life convenient for teachers and their families.

About 13.1 percent of early‑childhood educators live below the poverty line, a rate six times higher than that of elementary and middle‑school teachers, according to the Center for the Study of Child Care Employment. The U.S. Bureau of Labor Statistics projects employment of preschool teachers to grow 2 percent from 2022 to 2032, slower than the average for all occupations. These conditions lead to staffing shortages and high turnover, limiting childcare availability for families, the University of California, Berkeley’s Center for the Study of Child Care Employment says. The data also highlight the need for policy changes to support teachers.

Friends Center reached out to the community and philanthropists to turn its idea into reality. Two neighborhood homes were donated, and four teachers moved into the units with their families in 2021. The donated homes were originally single‑family residences that Friends Center renovated to meet the needs of teachers and their children. In 2023, the center partnered with Yale School of Architecture’s Jim Vlock First‑Year Building Project, a graduate program where students design and build homes as part of their degree. The school committed to building five new homes, each able to house two to four teachers and their families. The new homes, plus one donated house, form a “housing village” within walking distance of the center. The village layout encourages community among teachers, with shared gardens and a common gathering space that fosters collaboration and support. Three of the homes are complete; the fourth will finish in the fall, and the fifth next year.

Educators who need a place to live can move rent‑free into one of these duplexes. Eligibility requires an annual salary of $38,500 or less for one adult; $64,000 or less for one adult with children; or $79,000 or less for two adults with children. Residents also receive a financial coach to help them set and manage personal goals, such as buying a home, purchasing a car, or pursuing higher education. Financial coaches help teachers create budgets, set savings goals, and navigate credit, giving them tools to build a more secure future.

Currently, a dozen staff members live in Friends Center‑owned homes. By 2028, the center aims to house 24 teachers, about 30 percent of its staff. This goal reflects the center’s commitment to supporting its staff.

Gil moved into a Yale‑built home in 2023. The 25‑year‑old now has his own bedroom and bathroom and serves as the head teacher for infants and toddlers. “If it wasn’t for the housing program, I don’t know if I would still be here,” Gil said. Between low salaries and high living costs, Gil says it is hard for early‑childhood teachers to save money for basic needs or plan to start a family. He knows college friends who want to pursue a similar career but must share an apartment with five or six people. Gil has noticed a difference in coworkers who live in the teacher housing. “They can save money and have peace of mind,” he says. “They can go to a house where they feel safe and not have to worry about other expenses.” He notes that teachers who live in the housing program report lower stress levels and higher job satisfaction. Gil says he feels more confident about his future because of the housing.

Friends Center’s efforts have inspired housing projects in three other communities. In Battle Creek, Michigan, housing advocates launched a version of Friends Center’s First Home, First Teacher initiative to provide housing for 30 percent of the city’s early‑childhood educators. The Battle Creek initiative is modeled after Friends Center’s approach, with a focus on affordable, walkable homes that support teachers’ work‑life balance. In June 2024, two teachers moved into the initiative’s first duplex. In May 2024, Urban Sprouts Childhood Development Center worked with Friends Center to purchase its first pilot home in St. Louis, Missouri. Urban Sprouts’ pilot home will serve as a prototype for future projects, demonstrating how teacher housing can be integrated into existing childcare centers. Other centers are watching closely to see if this model can work elsewhere.

Early childhood educators are the backbone of the nation’s future, and stable housing is a key factor in retaining skilled teachers. As more centers adopt similar programs, the hope is that affordable housing will become a standard part of early‑childhood education, ensuring that children receive high‑quality care from dedicated teachers. Stable housing can reduce teacher turnover and improve the overall quality of care.