From decking the halls to hosting a dinner party, the cost of making the season magical can add up quickly. Americans say they’ll spend $261 this holiday on seasonal items, including decorations and greeting cards.¹ Let’s take a closer look at the cost of getting in the holiday spirit.

The ghost of holiday prices past

Remember 2019, when 25 sq ft of wrapping paper came in at $3.75 vs $5? Or when it cost 55 cents to mail a holiday card? Some seasonal staples have increased in recent years: Here’s how the cost of holiday essentials has changed across the past five years,^* according to the Consumer Price Index (CPI).²

*October 2024 vs October 2023 and October 2019. Seasonally adjusted figures.

Holiday staples across the board are more expensive than they were five years ago. Powering your string lights will cost over 27% more than it did in 2019, while wrapping the perfect gift is up 25%. Both outdoor equipment and home furnishings are moderately cheaper compared to last year, though that’s not to say consumers won’t still be cost-conscious: Empower research shows over a third of Americans say they don’t expect their money to stretch as far this holiday season (34%) and plan to spend less on festive décor (35%).

Christmas trees

Whether you opt for a real or artificial Christmas tree, cost is a major factor to consider. The American Christmas Tree Association says trees can cost anywhere from $25 to $2,500, with the average price of a six-foot fresh tree ringing up around $80.³ The same size artificial tree can cost up to several hundred dollars, though prices vary widely by size and retailer.

Last year, natural Christmas tree prices spiked by roughly 10 to 15% due to inflation and increased labor costs.⁴ Now, early holiday forecasts predict flat prices for the 2024 season, with 60% of Christmas tree growers reporting they don’t anticipate increasing their wholesale prices. That could mean holiday cheer for consumers’ wallets — especially those of the 23% of Americans buying a real tree for the first time this year.⁵

Festive decorations

35% of Americans buy new holiday decorations every year, either to replace old ones or to add to an existing collection. Here are some common decorating material costs:^6,7,8

Decorating services

Empower research shows that time is money for many Americans: 2 in 5 say outsourcing household tasks gives them a better work/life balance (41%). For some, that means calling professionals to decorate for the season. Prices vary widely depending on who you’re hiring and what services they provide. Here are some cost factors to consider:⁹

Outdoor lights

While holiday light prices vary widely but can cost around $0.50 to $2 per linear foot, there is also the electricity bill to consider.¹⁰ If you’re determined to light up every corner, there are ways to save on energy costs while keeping your home festive. Choosing LED bulbs over incandescent bulbs, for example, can help to save on energy expenses. For each extra strand of incandescent lights, you'll add between $4 and $15  to your utility bill for a 45-day season — for LED lights, that figure is $0.21 to $0.41 a strand.¹¹

The cost can add up for more extravagant displays: One Illinois homeowner’s outdoor decorations, featuring 300,000 lights, runs up a $600 electricity bill for the month of December.¹²

The bottom line

As you’re making your shopping list this season, make sure you check it twice against your holiday spending budget. While 80% of Americans set a budget for the holidays, people are nearly 3.5 times more likely to overspend than come in under their budget.