Data reveals what's more expensive now than 1990 – and what's cheaper

LOS ANGELES - For many Americans, the question of whether life is more expensive than it was in their parents' time often comes down to numbers. A newly released report from the U.S. Department of the Treasury sheds light on this, analyzing changes in the costs of goods and services from 1990 to 2024.

The findings reveal a stark divide: while some costs like electronics and clothing have dropped, essentials such as housing, childcare, and healthcare have surged far beyond wage growth.

Here’s a closer look at the most significant price trends over the past three decades.

What’s gotten more expensive?

Housing, education, and healthcare are among the categories where prices have risen the most since 1990, according to the Treasury report:

• Home prices: Inflation-adjusted home prices have nearly doubled since 1990, driven by limited supply and increased demand. This has made homeownership increasingly out of reach for many young Americans.
• Rent: Rents have also risen significantly over the same period, with median rents growing faster than median wages in most U.S. counties.
• Healthcare: Medical costs have increased dramatically, reflecting higher administrative expenses, demand, and price growth for treatments and medications.
• Day care and preschool: Costs for childcare have surged, posing challenges for families trying to balance work and family life.
• College tuition: The price of higher education has risen steeply, contributing to growing student debt burdens for young adults.

These cost increases disproportionately affect families and young individuals, complicating decisions around homeownership, education, and raising children.

What’s cheaper now than in 1990?

While essentials have become more expensive, the Treasury report highlights areas where costs have decreased:

• Electronics: Prices for items like televisions, computers, and smartphones have dropped dramatically thanks to advancements in technology and manufacturing.
• Clothing: Apparel prices have seen minimal growth, benefiting from globalization and more efficient supply chains.
• New vehicles: While cars have become more technologically advanced, their prices have risen only modestly compared to other categories.

These categories demonstrate how innovation and global trade can drive down costs, even as prices for essentials like housing and healthcare continue to climb.

Why these shifts matter

The divide between rising costs of necessities and declining prices for goods like electronics underscores larger economic trends:

1. Housing demand and supply: Limited construction and increased demand for housing have pushed prices higher.
2. Healthcare inflation: Rising costs in the healthcare sector have driven up expenses for treatments and insurance.
3. Technology’s role in affordability: Advances in manufacturing and production have made items like computers and televisions more accessible.

For young adults, the challenges of affording essentials like housing and childcare are compounded by slower wage growth relative to these price increases.