BY HEJIRA CONVERY, KINDICARE

DECEMBER 11, 2023

Demand has a direct effect on families’ ability to access childcare, and to truly understand what’s going on with demand versus supply, we’ve drilled down on the detail and released our first ever KindiCare Relative Demand Index.  

This Index is a first for the childcare market as well, and it’s illuminating for families and early childhood providers, because instead of just looking at pure demand for childcare, our Relative Demand Index measures demand relative to approved childcare places. 

As a consequence, the KindiCare Relative Demand Index is more reflective of the struggle likely to be faced by parents when accessing care in different suburbs, and our Relative Demand Index is underpinned by a lot of dependable data. 

We’ve based this Index on more than one million childcare listing views and engagement activities with providers, by over 250,000 active parent users on the KindiCare App and Childcare Comparison Website in the past 12 months. 

What we’ve found is that even in suburbs with decent childcare coverage, there may be much higher demand than the available supply of childcare places.  

KindiCare’s Founder and Chief Executive, Benjamin Balk says, “It’s important for families to understand that demand varies, and even in suburbs and areas with lots of childcare centres, it doesn’t mean that it’s any easier to find care on the days a family needs.  

“We see some families who assume that childcare, like school, is a given, when actually the reality is quite the opposite for most families.” 

Parramatta in New South Wales is a potent example of this, because although this suburb is a thriving metropolis, with 15 childcare centres and kindergartens and a total of 928 approved places, we’ve found that demand for childcare is still extremely high.  

In Parramatta, childcare demand is actually greater than three times the national average, compared to supply (i.e. approved places); and this is the case before you even think about other factors, like the artificial capping of places because of staff shortages.  

Of course, Parramatta isn’t the only place where relative demand for childcare is very high. 

The KindiCare Relative Demand Index has found that 20% of suburbs (i.e. 741 suburbs out of 3,711) across Australia have much higher demand than the national average.  

And in almost 100 suburbs, we’ve found that demand for childcare is extreme, compared to the approved childcare places in those postcodes.  

For instance, there is Extremely High Demand for childcare in cosmopolitan North Sydney and coastal Dapto in New South Wales (despite there being 477 and 578 approved places respectively); and NSW isn’t the only state that’s suffering.  

Many suburbs around the nation, including Kensington in Western Australia, Heathmont East in Victoria and Wooloowin in Queensland, are also in Extremely High Demand, according to the KindiCare Relative Demand Index.  

‘Extremely High Demand’ is one of six categorisations we’ve come up with to explain relative childcare demand. 

Below you’ll find a description of each categorisation, and also some tips to help you deal with childcare demand, and secure a place in your suburb of choice: 

Categorisation 1: Extremely High Demand  

In suburbs categorised in this way (like Parramatta), there is Extremely High Demand for childcare, relative to the approved places for centres in the suburb.  

Parents are likely to find extensive waitlists in these areas when trying to secure a spot for their child, and typically will find it extremely difficult to find care for children aged 12 months and under.  

If you live in a suburb with Extremely High Demand for childcare, we recommend that you look at neighbouring suburbs, or those closer to work, to give yourself a higher chance of securing an early learning place.  

KindiCare also recommends making enquiries with as many centres as possible to give yourself the best chance of getting a spot. 

Categorisation 2: Very High Demand  

Suburbs with Very High Demand have a high level of interest from families searching for early learning options.  

Parents are likely to find long waitlists in these areas when trying to secure a spot for their child. It is also likely that a parent might not be able to get a spot for all the days they want, and the days of their choosing,  

If there is limited supply available, compared to the demand in your suburb of choice, then we suggest that you look at neighbouring suburbs for more early learning options, considering those that are convenient to access, like the ones on your way to work.  

We also recommend that you tour and waitlist with at least five to 10 childcare centres, and talk to each Centre Director about the waitlist length by age group. 

 Categorisation 3: High Demand 

Suburbs with High Demand show a higher than average interest from parents in early learning services in those areas.  

Parents may encounter medium to long waitlists in High Demand suburbs, which will vary by age group, depending on the types of services and age groups available at services in the area.  

If you’re in a High Demand area, we recommend that you tour and waitlist with at least five centres, depending on what the Centre Directors have told you about waitlist length and availability when on tour.  

If you’re looking for childcare in a High Demand area, you should also consider touring and waitlisting with centres in nearby suburbs, if they have less demand than the suburb you live in. 

Categorisation 4: Average Demand 

Suburbs with Average Demand are in the normal range when it comes to the number of parents looking for early learning services, compared to the approved places in those suburbs.  

Parents may still encounter waitlists in these areas, but they are more likely to secure a place if they have toured and put their name down at multiple centres.  

KindiCare recommends that you enquire and tour with at least three to five centres to give yourself the best chance of securing a spot for your preferred days.  

Keep in mind, too, that if you’re in a regional suburb with Average Demand you may still see a high degree of competition between families for the placement of younger children, and particularly babies and toddlers. 

In this case, it’s important to speak with each Centre Director to understand availability for the age bracket your child is in.  

Categorisation 5: Low Demand 

Suburbs with Low Demand tend to have more early learning options that are more easily accessible for families.  

Parents may still encounter waitlists, but the competition with other families for a place is going to be less than the national average.  

Parents in suburbs showing Low Demand are more likely to secure a spot in the centre of their choosing and for the days they want.  

If you’re in a regional suburb with Low Demand you may still see lots of competition between families for the placement of younger children, particularly babies and toddlers. 

In this case, it’s important to speak with each Centre Director to understand availability when it comes to your child’s age.  

We recommend that you make enquiries with at least three early learning services in your suburb of choice and surrounds, and also do tours to get a real sense of availability, courtesy of the Centre Directors. 

Categorisation 6: Very Low Demand 

Suburbs with Very Low Demand tend to have more early learning options that are more easily accessible for families.  

Parents may still encounter some waitlists, particularly for younger ages, but the competition with other families for a place is going to be less than the national average.  

Parents in suburbs showing Very Low Demand are more likely to secure a spot in the centre of their choosing and for the days they want.  

If you live in a regional suburb categorised as Low Demand you may still see a high degree of competition between families for the placement of younger children, particularly babies and toddlers. 

As in regional suburbs categorised as Average Demand or Low Demand, it’s important in this case to speak with each service’s Centre Director to understand availability for your child’s age bracket. 

We recommend that you make enquiries with at least three early learning services in your suburb of choice and surrounds, and ask the Centre Directors about availability when you do your centre tours. 

Though every centre and suburb is unique, we have found that quality is a key driver of childcare demand around Australia.  

The latest KindiCare Demand Index tells us that quality is the primary consideration when parents are choosing childcare, ahead of price and location, and there is definitely more demand for high-quality centres, such as those with an Outstanding KindiCare Rating of 9.5 or above.  

None of us want to lower our education and care expectations, or settle for something sub-standard, and as we’ve touched on above, the best way to secure a quality childcare place is by being proactive, flexible and relationship-focused.   

This article contains top tips to help you do this, even where demand is high, and if you’re looking for big picture ways to improve the whole early childhood education and care sector, this interview with Jessica Rudd, interim Chief Executive of The Parenthood, is definitely worth a read.  

Whether you’re in an Extremely High or Very Low Demand area we wish you luck with your childcare search, and the KindiCare platform is expertly designed to make childcare searching, comparing, enquiring and applying as simple as possible.  

Best of luck securing that spot!