# Americans spend nearly half their budgets on food and housing

> Housing and food now account for 46.9% of average household spending in 2025, the highest share in 15 years, as costs outpace income growth.
- Title: Americans spend nearly half their budgets on food and housing
- Summary: Housing and food now account for 46.9% of average household spending in 2025, the highest share in 15 years, as costs outpace income growth. Americans spent…
- Keywords: consumer spending, housing costs, food prices, affordability crisis, household budgets, cost of living, consumer sentiment, inflation, Americans, spend, nearly, half
- Source: Fortune — https://fortune.com/2026/11/02/americans-half-budget-food-housing-share-15-years
- Author: Joshua Hong
- Read time: 1 min
- Topics: consumer spending, housing costs, food prices, affordability crisis, household budgets, cost of living, consumer sentiment, inflation
## Nearly half of household budgets go to basics
Housing and food accounted for 46.9% of average expenditures in 2025, according to the U.S. Bureau of Labor Statistics Consumer Expenditures Report.
## Housing costs jumped 5.8% in one year
The average household spent $27,790 on housing in 2025, up from $26,266 in 2024. Shelter costs rose 8%, rented dwellings climbed 10.8%.
## Food spending increased 4.6% year-on-year
The average consumer spent $10,633 on food in 2025, up from $10,169 the previous year. Meat, poultry, fish and eggs spending jumped 11.7%.
## Costs rising faster than overall inflation
Consumer inflation increased 2.6% in 2025, while housing and food expenditures grew faster. This disconnect between finances and affordability has carried into 2026.
## Consumer sentiment hits second-lowest on record
The University of Michigan's October consumer sentiment index sat at 48.0, down 10.4% from October 2025's 53.6. It was the second-lowest in the survey's history.

> Purchasing power continues to dominate consumer views of the economy.
## Nearly half of Americans lack resources for essentials
According to The Urban Institute's October tracker, 49% of people in American families lacked resources to cover true costs of essential expenses and live securely.
## Lowest earners spend more than they make
Households in the bottom income quintile made $18,125 in pre-tax income but had $37,935 in annual expenditures. Average pre-tax income rose 6.4% to $110,847 in 2025.
## Healthcare and utilities add to the squeeze
Americans spent 4.4% more on healthcare in 2025, reaching $6,470 annually. Health insurance premiums climbed 6.3% to $4,310. Utility bills rose 4.1% to $411 monthly.
## Key takeaway

Americans spent 46.9% of their budgets on housing and food in 2025, the largest share in 15 years, as these costs rose faster than overall inflation.