How The Average Household Income In The 1970s Compares To Today
The 1970s were a historically significant time period in the United States, with events like the Watergate scandal and the Vietnam War dominating the headlines, all happening alongside the ongoing Cold War. Americans were enjoying a robust pension system and earlier retirement compared to today. This period also saw a workforce made up primarily of the baby boomer generation, who prioritized owning homes and benefited from the Emergency Home Ownership Act of 1970, making it easier to get a mortgage. Given this context, the household income of this time period is quite telling.
The United States Census Bureau reported that the average household income in the year 1970 was $9,870. Adjusted for inflation, this equates to $84,808, which is in fact higher than the 2024 average household income of $83,730, as reported by the Federal Reserve Bank of St. Louis. The average income nearly doubled during the decade, rising all the way up to $16,530 by 1979. However, there is nuance to the narrative; in today's dollars, the converted value falls to $78,608, showing the effect of rapid inflation experienced during the 1970s.
The 1970s saw rapid inflation but homes were still affordable
In 2025, the price of essential household items jumped due to inflation. This trend is illustrated by the fact that the Consumer Price Index, a measurement based on the price of basic goods, is at an all-time high. The current conditions are due to a consistently rapid rise in inflation that began in 1970 and has continued until now. With this being said, one's wages could get them quite a long way in 1970, with the retail price of beef sitting at 90 cents per pound according to a report by Ohio State University. Additionally, the price of goods like coffee was under a dollar in the mid-1970s.
Another telling aspect of the period's conditions in the housing market. The median price of a home in May of 1970 was $25,700, but it skyrocketed to $61,500 by the end of that decade. According to Zillow, the current average price of a house is $360,727. The rapid saturation of the market following the Emergency Home Ownership Act of 1970 did drive home prices up by the end of the decade. Additionally, increased involvement in foreign wars, including the Vietnam War, resulted in rampant inflation from military spending. The 2025 housing market may still shift, however, with Berkshire Hathaway making a major prediction for the market as the year ends.