A dollar in 2023 will buy you roughly 43.45% of what it would buy you in 1990. So basically, $1 in 1990 would give you $2.30 worth of purchasing power today.
While that sounds like your money is worth more today than it was in 1990, it’s not. The cost of goods and services has gone through the roof. If you had 1 million dollars in 1990, it would be about 2.3 million today. But modest home in 1990 was about $90k, where today (in this market) it would be between $250k to $300k.
Here is a comparison of various goods and services costs from 1990 vs. 2023.
Average Annual Income
1990: $33k per year
2023: $49k per year
Home Prices
1990: $90k
2023: $222k (with post Covid real estate market $250k to $300k)
Rent Prices
1990: $400 per month
2023: $1,500+ per month
Public College Tuition
1990: $1,800 per year
2023: $4,200 per year
Private College Tuition
1990: $8,400 per year
2023: $21,000 per year
Gas Prices
1990: $1.20/gallon
2023: $3.50 gallon
When it comes to food, it’s safe to say that food in 1990 cost 44% less in 1990 than it does today.