An analysis of spending patterns reveals differences in how Americans shop across different states, with some regions showing spending increases that far outpace income growth and signal potential financial danger for millions of households.
The research from InvestorsObserver, examining nearly three decades of consumer data, found that while nationwide spending on durable goods increased by 90% since 1997, certain states have seen explosive growth exceeding 600% in the category of telephone and related communication equipment.
The study analyzed state-by-state spending data from 1997 to 2024, credit card balance trends, and shifts in consumer purchasing patterns. This allows for identifying which states may be courting financial trouble through unsustainable shopping habits.
The States Where Spending Has Exploded
The research identifies several states where spending growth strongly exceeds national averages. Multiple states show more than 600% growth in durable goods spending since 1997, with communication equipment and electronics spending surging over 600% in top states: North Carolina 672%, North Dakota 648%, Washington 645%, and South Dakota 614%.
“These numbers represent real financial risk for families,” says Sam Bourgi, a finance analyst at InvestorsObserver. “When spending growth outpaces income growth by this magnitude, it’s almost always fueled by debt, and that’s a dangerous game to play.”
This Might Be the Credit Card Crisis
The research found that average credit card balances at major issuers including American Express, Discover, and Capital One have grown at 0.5% monthly since 2020. This translates to approximately 6% per year, with pronounced spikes during the Black Friday season.
“What we’re seeing is a storm,” warns Bourgi. “Easy credit, aggressive seasonal marketing, and social pressure to keep up with spending in high-growth states. This can eventually lead to financial difficulties.”
A Cultural Shift in Consumer Behavior
“The shift from buying a car or jewelry – items that last for years – to constantly upgrading phones and electronics creates a perpetual spending cycle,” explains Bourgi. “In states where this pattern is most pronounced, we’re seeing households trapped in endless upgrade cycles they can’t afford.”
The data reveals a huge divide in shopping habits across America. California leading in total durable goods purchases pump billions into the economy but show concerning debt accumulation patterns.
Meanwhile, other states have actually reduced spending in certain categories, with some showing 10% to 16% declines in jewelry, watches, and vehicle purchases.
“The states pulling back on traditional luxury items might actually be the smart ones,” notes Bourgi. “They’re avoiding status symbol purchases that depreciate quickly.”
Post-Pandemic Spending Surge
The 2020 to 2024 period had a strong growth in spending across multiple states. North Carolina tops the list with an 18% change from 2020 till 2024 (inflation adjusted), and is followed by Nevada (16%), and Texas (16%).
“The pandemic created a pressure cooker effect,” Bourgi explains. “Pent-up demand, stimulus money, and changed lifestyles led to explosive spending growth that’s simply not sustainable. We’re now seeing the consequences as credit card balances climb and savings rates plummet.”
Geographic Patterns of Financial Risk
Bourgi has identified several warning signs that indicate when state-level spending patterns suggest widespread overspending.
If a state’s credit card spending has grown more than three times the national average, when credit card balance growth exceeds 6% annually, when spending concentrates heavily in rapidly depreciating categories like electronics, or when spending growth strongly exceeds median income growth, residents should be particularly cautious.
“Knowing your state’s spending patterns is crucial for making smart decisions,” advises Bourgi. “If you’re in a high-spending state, you need to be extra vigilant about not getting swept up in the frenzy.”
The Cost of Keeping Up
The research highlights how credit card interest can quickly erase any savings through seasonal discounts during Black Friday and Christmas. Various surveys show that consumers can spend months, if not more, paying off holiday debts.
If a consumer carries a balance at a 20% annual percentage rate, the interest accrued in just 18 months will erase the benefit of an initial 30% discount.
“The most expensive thing you can buy on Black Friday is the illusion that you need to match your state’s spending trends,” warns Bourgi. “Our data shows clear geographic patterns in overspending that suggest social pressure plays a huge role in driving dangerous financial behavior.”
Expert Recommendations for Consumers
According to Bourgi, awareness is the first step toward financial safety. “If your state’s spending has grown 600%, that doesn’t mean yours should too,” he says, and recommends that consumers in high-risk states consider a cash-only strategy for seasonal shopping and focus on needs rather than wants.
The data shows people are abandoning necessities for wants. “Reversing that trend is crucial for financial health. This allows you to shop smart regardless of what your neighbors are doing,” explains Bourgi.
About the Research
Researchers from InvestorsObserver analyzed American shopping trends over the past three decades. The focus was on state-by-state and national sales data for durable goods, credit card transaction volumes, and shifts in consumer spending across key product categories like electronics, appliances, furniture, sporting goods, and jewelry.
The Personal Consumption Expenditure (PCE) data was collected from the U.S. Bureau of Economic Analysis. Monthly credit loan issuance data (2018–2025) for American Express, Discover, and Capital One was pulled from Bloomberg. Then, the researchers calculated how expenditures had changed over time (1997–2024). 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 11Alive, CBN, KFYR TV, and ABC30, and is often quoted by such media outlets as Yahoo Finance, SF Chronicle, The Tennessean, and MSN.
ABOUT INVESTORS OBSERVER
InvestorsObserver is a trusted source of independent financial analysis, market insights, and investment research for individuals and institutions. Founded to empower retail investors with actionable intelligence, InvestorsObserver delivers timely commentary, data-driven studies, and accessible financial tools designed to simplify complex market trends. Its research and insights have been featured by various media outlets, including Yahoo, The Guardian, Morning Star, Nasdaq, and more.
Previous research by InvestorsObserver:
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How buying 1% of the S&P 500 went from achievable to nearly impossible for minimum wage workers
How many Big Macs does it take to buy a house? The surprising truth about home affordability in 2025
These American cities have the most unaffordable neighborhoods in 2025
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