ConsumerAffairs Finds US Purchasing Power Rose 73% in 50 Years as Tuition, Healthcare Outpaced Incomes
Updated
Updated · Newsweek · Jul 17
ConsumerAffairs Finds US Purchasing Power Rose 73% in 50 Years as Tuition, Healthcare Outpaced Incomes
1 articles · Updated · Newsweek · Jul 17
Summary
A ConsumerAffairs study comparing 1974 with 2024 found inflation-adjusted purchasing power rose 73%, with median individual income increasing to $48,960 from $28,278.
College and healthcare were the main exceptions: tuition purchasing power fell nearly 43%, healthcare buying power dropped more than 17%, and out-of-pocket medical spending climbed 68% to $1,632.
Housing also became harder to afford, with the inflation-adjusted median home price reaching $418,975 versus $229,342 in 1974 and median rent rising to $1,487 from an inflation-adjusted $910.
That squeeze has reshaped household behavior: 42.5 million U.S. households rented in 2023, 49.7% were cost-burdened, and the typical first-time homebuyer age rose to 40 in 2024 from 29 in 1981.
The mixed gains help explain persistent gloom despite higher incomes, with a CNBC survey finding 61% of U.S. adults pessimistic about the economy and 47% cutting back on essentials.