Funeral Costs Jump 310% Since 1986, New Report Finds

The cost of arranging a burial or cremation has risen by approximately 310% since 1986, according to a new report released Thursday by Groundwork Collaborative. The organization, Death, Debt, and Paperwork, argues that corporate consolidation and opaque pricing structures are driving these increases. For many families, the financial burden begins with a mandatory basic services fee that is difficult to avoid.

The report cites a 2023 price study from the National Funeral Directors Association, which lists the basic services fee at $2,495 for both burial and cremation. This charge is considered non-declinable. Additional costs listed in the report include a $395 transfer fee, more than $1,000 for embalming, and $2,500 for a standard casket. Burial vaults cost about $1,000, while opening and closing a grave ranges from $1,000 to $2,500. Headstones add another $1,000 to $3,000 to the total bill.

Federal data supports the steep price climb. The U.S. Bureau of Labor Statistics tracks funeral expenses in a price index set to 100 in December 1986. By December 2025, that index reached 409.547. The September 2026 reading stood at 418.227. Over the same period, the index for all consumer items rose by 193%. The report calculates the average funeral cost at $7,726, excluding cemetery charges and other optional items.

This average cost exceeds the median balance in many American bank accounts. The Federal Reserve's 2025 Survey of Consumer Finances, released this month, shows that the median balance in transaction accounts is $8,200. This figure is down 6% from 2022. A Debt.com survey cited in the report indicates that the share of families taking on debt after a death increased from 14% in 2024 to 37% in 2025.

Zoe Butler, who wrote the report, attributes part of the price rise to corporate ownership. The study states that corporate chains and private-equity-backed firms own about one in five funeral homes. These entities handle a disproportionate share of services. The report suggests that new corporate owners often raise prices, a trend supported by 2022 reporting. Butler warns that without reform, consolidation will continue to drive up prices.

Pricing transparency remains a challenge. Under the Federal Trade Commission's Funeral Rule, enacted in 1984, funeral homes must provide a general price list when arrangements are discussed. They must also provide price information over the phone. However, the rule does not require funeral homes to post prices online. A June 2022 report by the Consumer Federation of America and the Funeral Consumers Alliance found that only 18% of funeral homes in 35 state capitals posted price lists on their websites.

Few families compare prices before making a purchase. An Ipsos survey of 2,009 Americans conducted in May 2022 found that 41.4% of those who helped plan a funeral visited only one funeral home. Only 20.0% visited more than one. Another 38.6% did not remember seeing a price list at any home. Service Corporation International told the FTC in a 2020 comment that the current rule was working and should not be weakened.

The report calls for federal action to address these issues. Groundwork proposes standardized online pricing, a larger Social Security death benefit, and a basic federal life insurance program. The organization notes that 40% of new life insurance policies are term policies that may expire before death. Industry data from the American Council of Life Insurers shows that 39.3% of new individual policies bought in 2024, or about 3.8 million policies, were term insurance.

Rhode Island lawmakers considered funeral business legislation this year, but no bill passed. House Bill 7920 was held for further study in April and passed the House in amended form in May. It was referred to the Senate in June but died when the session ended. Senate Bill 2594 was held for further study in May and also failed to pass. Any new attempt to change funeral regulations in the state would require a new bill in the session opening in January 2027.

Families can use existing federal rules to manage costs. The Consumer Federation of America report notes that consumers can request a general price list in person or by phone from any funeral home. The list is kept by the consumer. Asking a second funeral home for a price list places a family ahead of the majority who visit only one provider. The full report from Groundwork Collaborative is available online.