North Carolina tops the list with households now spending more than seven times what they did in the late ‘90s on phones and other communication equipment. That’s 7.66% average growth every single year for 27 years – far outpacing wages or typical inflation.
Even recently, the trend shows no signs of stopping. Washington and South Dakota each jumped 37% from 2020–2024, while Texas grew 21% over the same period.
South Dakota leads with the highest yearly average at 7.95%, proving smaller states can spend big per person. Most states here saw 1–5% gains even in 2024 alone.
“Every 2–3 years, people in these states swap for the newest model. These devices lose half their value the moment they leave the store. When you combine that with the fact that credit card balances have grown a lot since 2018, largely financing these same tech purchases, you’re looking at families and individuals paying interest on depreciating assets,” noted Bourgi.
Resilient Spending, but Rising Debt
According to the most recent data, U.S. consumer spending increased and remained resilient, as households stepped up purchases of a range of goods and services, despite the economic uncertainty.
“People enjoy buying, it boosts our mood, it shows off wealth. On the surface it seems positive, and the economy remains resilient. But if your paycheck hasn’t grown as fast as your spending, that resilience can easily turn into a debt problem by mid-year, which is why the tech spending diet is your best bet for making resolutions stick,” said Bourgi.
About the Analysis
InvestorsObserver researchers used federal Personal Consumption Expenditure (PCE) data from the U.S. Bureau of Economic Analysis across all 50 states from 1997–2024, focusing on inflation-adjusted changes in durable goods spending.
Then, this data was cross-referenced with credit loan trends (obtained from Bloomberg) from American Express, Discover, and Capital One (2018–2025).
The team then calculated how expenditures have changed over time. All calculations are inflation-adjusted.
ABOUT SAM BOURGI
Sam Bourgi is a finance analyst and researcher at InvestorsObserver, bringing over 13 years of expertise in financial markets, economics, and monetary policy. His professional background spans the private, nonprofit, and public sectors, where he has held positions such as senior policy adviser, labor market analyst, and marketing director. Sam’s in-depth research and market analysis have been referenced by leading institutions and organizations, including the U.S. Congress, Department of Justice, Chicago Board Options Exchange, Bank for International Settlements, Boston University Law Review, Barron’s, and Forbes. Sam regularly appears on TV, including FOX 5 DC, CBN, KFYR TV, 11Alive, and ABC30, and is often quoted by such media outlets as Bloomberg, SF Chronicle and ZeroHedge.
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