How Far a $100,000 Income Goes Today Compared to 2016
Written by
Fiona Tapp
Edited by
Brendan McGinley
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Everyone’s posting #2016 pics, but how much has our money actually changed over the past decade? Scrolling through old photos has become a popular online trend and it’s not just nostalgia. Many people are realizing that life today feels more expensive than it did 10 years ago.
Comparing the numbers, that’s not just a feeling, it’s reflected in how much our dollars can actually buy. Here’s the one-time lofty income goal of $100,000 compared across the past decade.
Inflation Means $100,000 Doesn’t Stretch as Far
Due to inflation, prices overall have risen significantly since 2016, according to the U.S. Bureau of Labor Statistics Consumer Price Index Inflation Calculator, $100 in 2016 has the same purchasing power as about $134 to $135 today. That means prices on average are roughly 34% to 35% higher than 10 years ago, and a dollar today buys only about 75 cents’ worth of what it could in 2016.
If you earned $100,000 in 2016, you would need roughly $134,000 to $135,000 today to buy the same amount of goods and services before accounting for tax changes, housing price growth, or lifestyle costs.
Prices Don’t All Rise Equally
Some everyday expenses have climbed faster than the overall average, according to the Official Data Foundation.
- Housing and rent have increased about 40% or more since 2016, above the general inflation rate.
- Food and groceries have risen sharply.
- Other categories like apparel or electronics have seen much smaller changes.
Even if overall inflation is around 35%, the real pain points in your budget like rent, groceries and transportation have gotten even more expensive relative to income, especially in pricier cities.
What $100,000 Bought in 2016 vs Today
Research covering U.S. cities shows that after adjusting for taxes and local cost of living, a six-figure salary can feel very different today compared to 10 years ago. The New York Post found that in Manhattan, a $100,000 income is effectively worth only about $30,000 in spending power after high local costs are factored in. This squeeze is also felt in other high-cost cities like San Francisco or Los Angeles. Conversely, in lower-cost cities such as El Paso or Oklahoma City, $100,000 goes much further.
Regardless of where you live, simply due to inflation, you’d need $134,600 today to maintain the same purchasing power you had with $100,000 in 2016.
Why the Gap Feels Bigger Than Inflation Alone
There are a few reasons the change since 2016 feels bigger than a 35% inflation rate:
- Housing costs soared: According to the U.S. Department of the Treasury, rent and home prices in many U.S. cities have outpaced overall inflation, meaning housing eats up a larger share of income than it did in 2016.
- Wage growth has lagged prices: Although nominal incomes have risen over the past decade, the U.S. Department of the Treasury also notes that rents and house prices have been rising faster than incomes across most regions of the United States.
- Everyday bills have risen steadily: Groceries, utilities and transportation costs make daily life noticeably more expensive beyond headline inflation figures.
How Prices Have Changed — Real Examples
According to the Official Data Foundation, the U.S. dollar has lost about 26% of its purchasing power since 2016, meaning everyday costs have risen faster than many people realize, including:
- Groceries and food: Overall, food and beverages are up about 36.8% over the period.
- Bread: $1.43 to $1.84
- Eggs: $2.33 to $3.59
- Chicken: $1.43 per pound to $2.08 per pound
- Housing and rent: Housing costs have increased about 43.5%, so a $1,000 monthly rent in 2016 could cost around $1,435 today.
- Gasoline and transportation: Gas rose from $1.97 to $3.29 per gallon, nearly 40%, with overall transportation inflation about 39.9%.
What This Means for $100,000
When routine costs like rent, groceries and transportation rise faster than general inflation, even a six-figure income doesn’t stretch as far. What $100,000 could cover in 2016, paying for rent, groceries, utilities and savings, no longer buys the same lifestyle in many cities, and definitely diminishes discretionary spending even in ones where it does.
Many people feel they’re working harder just to maintain the same standard of living, even though paychecks might be bigger on paper than in 2016.
The Takeaway
The viral “2016 vs today” trend isn’t just nostalgia for old photos, it’s a reminder that dollars don’t stretch as far as they used to. Inflation, especially on essentials like housing and food, has reshaped what a six-figure salary can realistically cover.
A $100,000 income still sounds strong, but compared with 2016, it buys less, and many people feel that gap every day in rent prices, grocery bills or expenses that have outpaced pay raises.
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