The cost of living in 1973 was greatly affected by the oil crisis. That year the Organization of Arab Petroleum Exporting Countries implemented an oil embargo against the United States. This caused the price of gas to skyrocket and rocked the economy, helping kick off a recession.
The 1973 oil crisis wasn’t even the only oil shock of the decade. Americans had to contend with a second one just a few years later in 1979. It sure was an eventful decade! To learn more about this period of history, let’s take a look at the cost of living in 1973.
The Cost of Living in 1973
The oil embargo and slow economic growth both helped cause the 1973 recession, which lasted until 1975. The unemployment rate jumped to nearly 9%, indicating that many Americans struggled to find work. According to Brookings, it was the most severe economic downturn in the postwar era.
Meanwhile, inflation also worsened the cost of living in 1973. That year inflation more than doubled to a whopping 8.8%. To see how inflation affected the cost of goods and services, check out our compilation of average prices below.
Cost of Food in 1973
According to The New York Times, a family of four needed $11,800 per year to maintain an average standard of living in 1973. For a comfortable lifestyle, $17,055 was required. Unfortunately, the average annual income was only $12,900, demonstrating that many families were stretched financially.
One basic need that took a big chunk of the household budget was food. Check out the average prices of groceries in the 70s below, which were gathered from Hobby Lark.
Item | 1973 | 2024 |
| Ground Beef | $0.99/lb | $5.13/lb |
| Butter | $1.00/lb | $4.65/lb |
| Tomatoes | $0.19/lb | $2.13/lb |
| Peppers | $0.39/lb | $2.43/lb |
| Dozen Eggs | $0.69 | $2.52 |
| Broccoli | $0.39/lb | $1.97/lb |
| Can of Frozen Orange Juice | $0.33 | $4.21 |
| Loaf of Bread | $0.20 | $2.00 |
| 8-Ounce Yogurt | $0.29 | $1.62 |
| Potatoes | $0.08/lb | $0.88/lb |
| Cheese | $1.90/lb | $5.72/lb |
| Half Gallon of Ice Cream | $0.79 | $5.88 |
| Pot Roast | $0.79/lb | $7.35/lb |
| Can of Corn | $0.25 | $1.39 |
Price of Major Purchases in 1973
Housing was another expense that started to surge due to inflation. Between 1970 and 1973, the cost of a new house rose about $9,000. Although that doesn’t seem like a lot in today’s dollars, keep in mind that the average family was earning just shy of $13,000 per year. Coupled with high interest rates (which reached 8.67% in August of 73) this rapid price increase made it much harder to buy a home.
Take a look at the price of other major expenses like a new car and monthly rent below, which were gathered from The People History.
Item | 1970s |
| Monthly Rent | $175 |
| New Car | $4,520 |
| New House | $32,500 |
| Gas | $0.40 per gallon |
| 16-Speed Blender | $25.88 |
Cost of Entertainment in 1973
The cost of living in 1973 was very hard on families. Because of inflation, real spendable weekly earnings declined by an average of 3.1%. As a result, there wasn’t much disposable income left over for entertainment.
Still, it’s worth looking at the price of various entertainment items to get a full picture of the cost of living in 1973.
Item | 1970s |
| Portable TV | $264.88 |
| Portable Tape Player | $44.50 |
| Walkie Talkie Set | $13.88 |
| Mod Wall Clock | $150 |
| McDonald’s Cheeseburger With Fries | $0.59 |
Because they were on a tight budget, families had to get creative and find cheaper ways to entertain themselves. Watching TV and movies was a common pastime. People enjoyed listening and dancing to disco music, which rose to prominence in the 70s.
Dinner parties were also a popular way to socialize and catch up over a good meal. Without the internet, people spend more time face-to-face, simply enjoying each other’s company.
How do you think the inflation of the 70s compares to today? Share your thoughts and experiences in the comments!
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Vicky Monroe is a freelance personal finance and lifestyle writer. When she’s not busy writing about her favorite money saving hacks or tinkering with her budget spreadsheets, she likes to travel, garden, and cook healthy vegetarian meals.