Key takeaways

• Americans monthly spending on clothing and footwear has increased 72% since before the pandemic
• The cost of apparel in the U.S. has increased 7.8% since January 2020, per the Consumer Price Index (CPI)
• Men’s shirts and sweaters have seen the greatest price increases (13.4%), followed closely by kids’ clothing (+13.1% for boys and +10.3% for girls)
• Gen X are the biggest spenders on clothing and footwear so far in 2024, spending $705 a month on average, $71 more than the average American

After years of inflation, U.S. consumers are facing pricing pressures across a broad range of goods and services – and clothing is no exception.

Apparel prices keep inching higher

Since January 2020, the cost of apparel in the U.S. has increased 7.8%, according to data from the U.S. Bureau of Labor Statistics.¹ In June, the U.S. Consumer Price Index (CPI) for clothing increased a modest 0.1% month-over-month, following a decline of 0.3% in May and 1.5% rise in April.²

Empower analysis reveals that Americans’ monthly spending on clothing and footwear has increased a staggering 72% since the start of 2020. Consumers spent an average of $379 in January 2020 compared to $652 last month.

Spending on clothing and apparel since January 2020

Which items are having the greatest impact on Americans’ wallets? Data from the latest CPI report shows men’s shirts and sweaters have seen the biggest spike, increasing by 13.4% since before the pandemic. Childrenswear has also gotten significantly more expensive: Boys’ apparel increased 13.1% in recent years, while girls’ clothing followed closely behind at 10.3%.

Footwear prices have stepped up, too: Today’s sneakers and shoes will set you back 6.1% more than they did less than 5 years ago.

Price increases across a range of apparel

How are consumers reacting to the changing market?

A new kind of window shopping

Empower research found Americans spend 2.5 hours a day “Dreamscrolling” — looking at dream purchases or things they’d like to one day own. Forty-nine percent of Americans dreamscroll for clothing, shoes, and accessories, and over half say the habit makes it easier for them to be smarter with their money.

Hey big spender

Still, despite the best of intentions to save, some discretionary spending is inevitable. This year to date, Americans spent an average of $634 a month on clothing and shoes, according to Empower Personal Dashboard^TM data. That could equate to $7,602 this year if the trend continues. 

Some are more willing to part with their dollars than others: Gen Xers are the leading spenders so far, purchasing an average of $705 a month in apparel and footwear.

Average monthly spend on clothing and footwear by generation, year-to-date

Gen Zers are currently the most frugal of the bunch, averaging $486 a month – 45% less than their Gen X counterparts. Recent studies have found the younger generation has been hit harder by inflation than all other age groups, causing financial strain that could linger for years to come.³

Empower research shows that more than half of Gen Z (56%) and Millennials (51%) say their finances keep them up at night, compared to 37% of Gen X and 20% of Baby Boomers.

Resale revolution

With new clothing and footwear increasing in price, many consumers are turning to resale sites to shop for second-hand steals.

Today, the U.S. resale market continues to experience double-digit growth, 10 times faster than the traditional retail environment.⁴ By 2028, it’s estimated the U.S. secondhand market will reach $73 billion.⁵

One pre-loved luxury retailer found that when analyzed per wear, second-hand clothes were 33% cheaper in the long run than buying brand-new fast fashion products.⁶

The bottom line

While the 12-month inflation rate fell to 3% in June — around its lowest level in more than 3 years — the cost of living crisis has left many Americans contending with higher price tags.

With inflation cooling, it remains to be seen whether apparel prices will follow suit over the next few months.