Socioeconomic and family characteristics of two cohorts of babies born in 1982 and 1993 in Pelotas (Southern Brazil) were compared. There were 6,011 births in 1982 and 5,304 in 1993. In relation to family income, there were fewer poor babies in 1993; 60.8 % of the families earned less than 3 times the monthly minimum wage in 1993, as compared to 69.5% in 1982. Sanitary conditions also improved over the decade, and the proportion of families with running water and flush toilets increased by 10%. On the other hand, there were no changes in the proportion of single-parent families or availability of home appliances like radios, stoves, and refrigerators. The mean number of persons per household increased from 3.0 in 1982 to 3.2 in 1993. In general, comparison of the two birth cohorts in this city suggests an improvement in quality of living over the time period for families with newborns. This finding should be taken into account when studying the evolution of health indicators over the course of the decade.