The 90s are remembered as a decade of strong economic growth according to NPR. Technology was rapidly advancing and the internet was taking off, creating many jobs. Stock market performance was also solid and inflation remained relatively low. Let’s dive deeper into the cost of living in 1990 to better understand this prosperous period in American history.
The Cost of Living in 1990
Many Millennials are nostalgic for their 90s childhoods, and it’s easy to understand why. According to NPR, the 90s were a unique boom time in American history that’s unlikely to be repeated any time soon.
The rise of the internet and advancement of information technology strengthened the economy and transformed society. Stock market performance during the 90s was extremely strong, with returns averaging 18% per year. Although the internet created lots of jobs during the first half of the 90s, they were mostly concentrated in higher and lower income brackets. The number of good-paying midlevel jobs actually declined according to the BLS.
But luckily some wage growth still occurred during this time, giving Americans a financial leg up. The average annual income in 1990 was roughly $29,000 and rose to almost $41,000 by the end of the decade. To give you a better idea of how people budgeted their salaries, let’s jump into the average costs of necessary goods and services.
Cost of Groceries
In the 90s, groceries consumed roughly the same amount of people’s budgets as they do today. In 2022, consumers spent about 11% of their incomes on food, which is consistent with food spending in 1991. To get a better idea of the cost of living in 1990 as it relates to food, here’s a roundup of average grocery prices.
Item | 1990s | |
| Ground Beef | $1.82/lb | $5.13/lb |
| Pork Chops | $2.99/lb | $4.25/lb |
| Tomatoes | $1.21/lb | $2.04/lb |
| Sugar | $0.19/lb | $1.00/lb |
| Dozen Eggs | $1.05 | $2.52 |
| Chicken | $1.05/lb | $4.06/lb |
| Sirloin Steak | $2.99/lb | $13.70/lb |
| Potatoes | $0.31/lb | $0.89/lb |
| Gallon of Milk | $1.90 | $3.89 |
| Bacon | $1.49/lb | $6.60/lb |
| Coffee | $3.70/lb | $6.06/lb |
| Ham | $1.99/lb | $4.88/lb |
| Pork and Beans | $0.33 | $0.95 |
| Bananas | $0.48/lb | $0.62/lb |
Cost of Major Purchases
Although the cost of living in 1990 was relatively affordable, families still had to save up for major purchases like cars and homes. House prices were lower than today, but so were incomes. A new home cost roughly $123,000, while the average annual income was about $29,000. Mortgage rates were also a bit higher back then, reaching nearly 10% in 1990.
These factors may have made it difficult for some Americans to achieve the dream of homeownership. But luckily other necessities like rent and education were more affordable, giving Americans a bit of financial breathing room. Check out the cost of essentials like gas and rent below to get a better idea of the cost of living in 1990.
Item | 1990s |
| Gallon of Gas | $1.34 |
| New Car | $16,000 |
| New Home | $123,000 |
| Median Monthly Rent | $400 |
| Public College Tuition | $1,800 per year |
Cost of Entertainment
The economic prosperity and manageable cost of living in 1990 gave households more disposable income, allowing them to enjoy more leisure activities. Plus, the strong financial growth lended a general sense of optimism and hope to this decade.
The 90s were also described as a transformative period of pop culture. Many iconic shows from Friends to the Fresh Prince of Bel-Air aired that decade. Fashion and music styles from the time like grunge are even making a comeback today.
Major video game and console releases from Nintendo turned gaming into an important part of American entertainment culture. Going to the mall and the movies also remained popular pastimes. Technological advancements made groundbreaking special effects and visuals possible, leading to better action and science fiction films that wowed audiences.
Explore some of the prices of luxuries below (gathered from The People History) to learn how much it cost to have fun in the 90s.
Item | 1990s |
| Nintendo Game Boy | $89.99 |
| Movie Ticket | $4.15 |
| Leather Bomber Jacket | $99.99 |
| Snowboard | $199 |
| Levi’s Denim Jeans | $34.99 |
What do you think about the cost of living in 1990 and how it compares to today? Do you have any fond memories to share from the 90s? Let us know 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.