What is the most common mistake new daycare owners make?

Underestimating staffing and hours. Families expect extended coverage, and one-person operations seldom meet parent expectations or regulatory ratios.

Building a Daycare Facility: Budget, Timeline, and Important Things to Know

Q: How much does it cost to build a daycare facility in Houston, Texas?

Costs vary by scope. Renovations are typically moderate, while ground-up builds are higher-budget. Factor in insurance, staffing, permitting, ADA upgrades, and fire safety early to avoid surprises.

Q: How long does it take to open a daycare facility?

Renovations may finish in under a year. New builds commonly take 12-18 months from planning through licensing approval, depending on permitting, design, and construction lead times.

Q: What floor plans work best for daycare facilities?

Plans with age-specific classrooms, dedicated nap areas, and large outdoor play zones perform well. Texas requires at least 30 square feet of indoor space per child.

Callaway Childcare Construction
Oct 3
5 min read

^{Building a daycare facility takes more than a set of blueprints; it’s about creating a safe, engaging place where children thrive and parents feel confident. As the demand for safe, reliable, and inspiring daycare facilities grows across Texas, parents in Houston, Austin, and other major cities face long waitlists and rising costs while providers struggle to balance regulations, budgets, and operations.}

^{For entrepreneurs, developers, and franchise owners, building a daycare facility can be both an incredible opportunity and a complex challenge.}

^At^{Callaway Childcare Construction}^{, we’ve spent over 12 years building and renovating facilities that meet state licensing standards while creating environments children love. This guide is designed to answer the real questions aspiring daycare owners ask every day like: How much does it cost? How long does it take? What do parents expect? And how can I make sure my project succeeds from day one?}

^{Understanding the Market Before Building a Daycare Facility in Texas}

^{Before building a daycare facility in Texas, it’s essential to understand what families in your area expect and what they’re willing to invest.}

^{In Austin, parents often pay between $1,200 and $1,800 per month for daycare, while in Dallas, some families pay as low as $700 per month. This pricing gap underscores the importance of market research.}

^{Cost isn’t the only factor, convenience plays a significant role in the decision-making. We’ve also seen strong feedback from parents that operating hours are critical. Although an 8:30 a.m. to 5:30 p.m. schedule may seem reasonable, most working families need coverage from 7 a.m. to 6 p.m. or later. Overlooking this detail is one of the quickest ways to lose enrollment.}

^{For daycare owners expanding across multiple sites, our}^{Texas daycare construction services}^{can help assess market conditions across different cities.}

^{Licensing and Regulations for Building a Daycare Facility in Texas}

^{Every daycare in Texas must be licensed by the}^{Texas Health and Human Services Commission (HHSC).}

^{There are several license categories:}

^{Licensed Daycare Centers – suitable for larger facilities.}
^{Registered or Licensed Home Daycares – smaller capacities with fewer requirements.}
^{Listed Family Homes – minimal oversight, but not an option for professional operators.}

^{Certain things simply can’t go overlooked, such as the state’s strict enforcement of caregiver-to-child ratios. For example, one adult for every four infants. Before opening, you’ll also need background checks, CPR and first aid certifications, and facility inspections.}

^{For step-by-step details, explore our guide on}^{how to start a daycare center in Texas}^.

^{Building a Daycare Facility Budget in Houston, Texas}

^{The question we hear most often is:}^{“How much does it cost to build a daycare facility in Houston?”}

^{Here’s a breakdown of costs to consider:}

^{Property costs: Renovations can be cost-effective but may require upgrades for plumbing, ADA compliance, or fire safety. Ground-up construction offers more control but higher upfront costs.}
^{Insurance: Liability insurance alone can cost close to $1,000 per month, and property and workers’ compensation add more.}
^{Licensing and permits: Zoning, safety, and accessibility requirements must be budgeted early.}
- ^{For example, meeting ADA standards might mean adding ramps, accessible restrooms, or extra square footage. Fire safety requirements could add sprinkler systems or upgraded alarm systems. These upgrades can range from a few thousand to tens of thousands of dollars, so they should be built into your budget early rather than treated as a surprise.}
^{Furniture and equipment: Everything from cribs to play structures must meet safety codes.}
- ^{This could mean investing in commercial-grade furniture designed for heavy use, which comes at a higher price than residential options. For instance, a single commercial crib can cost $300–$600 compared to $100 for a consumer model. Multiply that across a facility, and it becomes a major line item in your budget.}
^{Staffing: Payroll is typically the largest ongoing expense.}

^{We explain this in detail in our article on}^{the true cost of opening a daycare center}^.

^{Designing a Facility That Works}

^{Texas requires at least 30 square feet of indoor space per child, plus outdoor play areas. But successful facilities go beyond compliance.}

^{Parents look for:}

^{Dedicated classrooms for each age group.}
^{Nap areas designed for quiet supervision.}
^{Commercial kitchens if meals are provided.}
^{Secure entry systems for safety and peace of mind.}

^{Outdoor design is just as important. Our work on the}^{Nest Arlington project}^{, where we turned structural columns into tree-like features, shows how creativity can transform a space.}

^{We also specialize in natural and inclusive playscapes. Learn more in our posts on}^{playground design ideas for daycare centers}^and^{inclusive playground equipment}^.

^{Explore our}^{playscape construction services}^{for custom outdoor solutions.}

^{Staffing and Operations for a Successful Daycare Facility}

^{A well-designed facility is only as strong as the team that runs it. Parents are cautious about one-person operations. Who steps in if the caregiver gets sick?}

^{That’s why a solid staffing model is non-negotiable. Texas requires specific ratios, but beyond compliance, investing in teacher training, and offering competitive salaries reduces turnover and reassures parents.}

^{How Much Time to Build a Daycare Facility in Houston, Texas}

^{Most daycare projects in Houston follow this general timeline:}

^{Market research and planning – 1–3 months}
^{Licensing orientation and pre-application steps – 1–2 months}
^{Site selection, design, and permitting – 3–6 months}
^{Construction or renovation – 6–12 months}
^{Staff hiring and training – 1–3 months, often overlapping with buildout.}
^{Final inspections and licensing approval – 1–2 months}

^{On average, ground-up facilities take 12–18 months. Renovations may be shorter, but delays in zoning or construction can extend timelines.}

^{Funding Options for Building a Daycare Facility in Texas}

^{Financing a daycare facility doesn’t always mean shouldering the entire cost yourself. Initiatives like the Texas Rising Star Program and the Child and Adult Care Food Program (CACFP) can help offset costs.}

^{We break this down in our article on}^{daycare grants and funding options}^.

^{Marketing Your Daycare Facility}

^{Parents choose facilities based on trust. To build that, consider:}

^{Open houses and tours before opening.}
^{A professional website with virtual walkthroughs.}
^{Testimonials from families and staff.}
^{Community outreach with schools and local organizations.}

^{Consistency across multiple locations also strengthens brand recognition. Learn more about our}^{daycare construction services}^{and how we help operators scale.}

^{FAQs About Building a Daycare Facility in Texas}

^{Q: How much does it cost to build a daycare facility in Houston, Texas? A: Costs vary, but most projects fall between moderate renovations and high-budget ground-up builds. Insurance, staffing, and permitting can significantly increase expenses.}

^{Q: How long does it take to open a daycare facility? A: Renovations may take less than a year, but new builds often require 12–18 months from planning to licensing approval.}

^{Q: What floor plans work best for daycare facilities? A: Parents prefer designs with age-specific classrooms, nap areas, and large outdoor play zones. Texas requires at least 30 square feet per child indoors.}

^{Q: What’s the most common mistake new daycare owners make? A: Underestimating staffing and hours. Families expect longer coverage, and one-person operations rarely succeed.}

^{Turning Daycare Design Ideas Into a Successful Facility}

^{A successful daycare doesn’t happen by accident. It starts with a clear plan, an understanding of regulations, and a design that supports daily routines and child development.}

^{Callaway Childcare Construction}^{has built and renovated facilities across Texas, Colorado, and beyond. We blend licensing expertise, creative layouts, and durable construction so owners can focus on what matters most — caring for children.}

^{If you’re ready to move from idea to opening day, share your plans with us. Let’s build a daycare facility that earns parents’ trust and gives children room to grow.}