How much has the cost of living increased in the United States over the last 20 years compared to income?

Here’s a comparison chart illustrating the average cost of living increase in the United States over the last 20 years compared to the average increase in income.

Category	2003	2023	Increase
Average Annual Income	$44,000	$75,000	$31,000 (70.5%)
Cost of Living Index	100	158	58%
Housing (Median Home Price)	$169,000	$350,000	$181,000 (107%)
Healthcare (Average Annual Premium)	$6,400	$22,200	$15,800 (247%)
College Tuition (Public 4-Year)	$5,300	$10,500	$5,200 (98%)
Grocery Costs (Average Monthly)	$400	$600	$200 (50%)
Gas Prices (Per Gallon)	$1.60	$3.30	$1.70 (106.25%)
Transportation Costs (Car Payment)	$300	$575	$275 (91.67%)
Utilities (Monthly Average)	$150	$250	$100 (66.67%)

Summary of Key Insights

Income Growth: The average annual income in the U.S. increased from $44,000 to $75,000 over the 20-year period, reflecting a growth of about 70.5%.
Cost of Living Increase: The cost of living index increased by 58%, indicating that living expenses rose at a slower rate than income, although individual categories (such as healthcare and housing) showed much higher increases.
Housing Costs: The median home price more than doubled, with a 107% increase, significantly impacting affordability for many families.
Healthcare Costs: The average annual premium for healthcare saw a staggering 247% increase, placing a substantial financial burden on households.
Education Costs: College tuition at public institutions nearly doubled (98% increase), contributing to student debt burdens.
Food and Transportation: Grocery costs and transportation expenses also increased significantly, at 50% and 91.67%, respectively, adding to monthly expenditures for families.
Utilities: Utility costs increased by 66.67%, affecting overall household budgets.

This chart highlights the growing financial pressures faced by Americans as the cost of living has outpaced income growth in many key areas, particularly healthcare and housing. Understanding these trends is essential for budgeting and financial planning.