The Average Cost of Living for Gen Z at 21 vs. Boomers at 21
The cost of living today is very different from what it was several generations ago. Take Gen Z vs. baby boomers for example.
Cumulatively, the inflation rate from 1997 (the start of Gen Z) to 2026 is 107.5%. That means something costing $100 back then would now cost $207.
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Now, compare that to the start of the baby boomer generation in 1946. The cumulative inflation rate from then until now is 1,608%. In other words, a $100 item back then would cost $1,708 today.
There’s no sugarcoating the fact that everything costs more today than it did before. But what exactly did the cost of living look like for boomers when they were just starting their adult life vs. Gen Zers today? Here’s a breakdown.
Average Cost of Living for Gen Z at Age 21
If you’re 21 years old this year, that puts you smack dab in the middle of Gen Z. This is going off the Beresford Research’s chart that states Gen Zers were born between 1997 and 2012.
Chances are, you’re just about to graduate from college or are working your first adult job. You might even be paying the bills without your parents’ (or grandparents’) support.
As for what you’re spending, here’s the average monthly cost of key expenses as per the latest data:
Apartment rental — $1,750 per RentCafe
Grocery costs — $847 per Bureau of Labor Statistics
Energy bill — $142 per U.S. Energy Information Administration
Health insurance (lowest-cost bronze premium) — $456 per KFF
All bills combined, the average U.S. household spends $6,545 monthly, according to BLS. That’s $78,535 annually.
Average Cost of Living for Baby Boomers at Age 21
The baby boomer generation is rather expansive, so it’s split into two:
Boomers I (1946 to 1954): The median for this generation is 1950. This means a person would turn 21 in 1971.
Boomers II (1955 to 1964): The median for this generation is (roughly) 1960. So, a person would turn 21 in 1981.
Historical cost of living data for these two years — 1971 and 1981 — is limited. However, it’s estimated that today’s prices are eight times higher than they were in 1971. The exact price increase depends on the item, however.
Back in 1971, here’s what things generally cost:
Median home value — $17,000 (equivalent of $135,990 today)
Gasoline — 35 cents per gallon (compared to today’s average of $4.16)
New car — $3,706 (compared to today’s average of $52,627)
Apartment rentals (adjusted for inflation) — $415 (today’s rentals go for over four times that amount)
But what about in 1981? The cost differential narrows, but it’s still there.
For example, an apartment rental (unadjusted) cost $243 on average in the early 1980s. That’s closer to $1,224 in today’s dollars. It’s also around $500 less than what the average apartment actually costs today.
Food prices are another big one. Using a food inflation calculator, here’s what you’d get:
$20 in 1971 would be $172 in 2026
$20 in 1981 would be $74 in 2026
Food prices are 759% higher today than they were in 1971, and they’re 271% higher than they were in 1981.
Healthcare costs have also skyrocketed:
$387 per person in 1971 (around $6,334 in today’s dollars)
$1,262 per person in 1981 (around $9,004 in today’s dollars)
Today, average annual healthcare spending is $15,474 per person, according to the Johns Hopkins Bloomberg School of Public Health. Health insurance can offset these costs, but it’s still a significant increase from the boomer generation.
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How Incomes Have Changed Over the Years
Costs aren’t the only thing that’s changed over the years. Wages have, too. According to the Social Security Administration (SSA), the national average wage index for the boomer generation was $6,497 in 1971 and $13,773 in 1981.
The BLS reports that today’s full-time employees earn $1,235 in median weekly earnings. That’s around $64,220 a year.
Overall Changes in Cost of Living: Inflation
The cumulative inflation rate has risen significantly. Since 1971, it’s risen 722%. Since 1981, it’s risen 266%.
As a baseline, this means everything is more expensive for today’s 21-year-olds than it was for boomers when they reached that age. But not everything has risen quite as much as you might think when looking at the unadjusted numbers.
Consumer Affairs reported that today, people have around 63% more purchasing power than they did in the early 1970s. Perhaps surprisingly, the national median income has also outpaced inflation. However, certain things — specifically housing and education — have resulted in major financial strain for young adults.
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This article was provided by MoneyLion.com for informational purposes only and should not be construed as financial, legal or tax advice.
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