American households are now devoting nearly half of their overall budgets to the foundational expenses of housing and food, marking the largest share of household expenditures captured by these two vital categories in a decade and a half.
According to fresh data released by the U.S. Bureau of Labor Statistics (BLS), the average American consumer unit spent $81,905 in 2025. This figure represents a 4.3% increase compared to the previous year. Out of this total expenditure, an average of $27,790 went directly toward housing, while $10,633 was spent on food. Combined, these two essential pillars of daily survival consumed $38,423, or 46.9%, of total household spending. This means that housing and food alone cost the typical American household $1,988 more in 2025 than they did in 2024.
A closer look at the federal labor data reveals that food and housing were notably the only major spending categories that registered statistically significant increases from 2024 to 2025. While other areas of consumer spending remained relatively stable or experienced negligible shifts, cost pressures in shelter and groceries continued to mount, squeezing family budgets across the United States.
Housing spending as a whole rose by 5.8% over the course of the year. This upward pressure was primarily propelled by an 8% jump in overall shelter costs. For renters specifically, the situation was even more pronounced, with spending on rented dwellings climbing by a steep 10.8%. These figures underscore the relentless affordability challenges facing tenants in rental markets nationwide, where price growth has consistently outpaced general economic indicators.
Meanwhile, food spending rose by 4.6%. This increase was driven in significant part by sharp price hikes in basic grocery staples, most notably an 11.7% surge in consumer spending on meats, poultry, fish, and eggs. As families navigated these rising grocery bills, dining and sustenance took up a substantially larger portion of household revenues.
Detailing the broader breakdown of American spending habits, the BLS noted in its report that consumer units spent an average of $27,790 on housing in 2025, accounting for 33.9% of total average annual expenditures. By comparison, the next largest shares of total expenditures went toward transportation at 16.5%, food at 13%, and personal insurance and pensions at 12.4%.
Financial historians and market analysts tracking long-term consumer trends point out that these proportions represent a significant tightening of household finances. Setting aside an anomalous spike recorded during the unique economic disruptions of 2020, the housing share of total expenditures has not reached this level since 2010. Similarly, the 13% share dedicated to food represents the highest proportion of household budgets spent on eating since 2011, according to reporting by Bloomberg.
The mounting pressure of housing and food costs comes even as average pretax incomes registered growth. According to the BLS data, the average pretax income for American households rose 6.4% to $110,847 in 2025. This income growth notably outpaced the 2.6% rise in consumer prices recorded over the same period, suggesting that aggregate nominal earnings improved, though the distribution of these gains and the uneven nature of inflation in essential goods left many households feeling the pinch.
Compiling the annual figures presented unique challenges for federal statisticians. The BLS noted that the U.S. Census Bureau was unable to collect survey data during October and November of 2025 due to a federal government shutdown. To account for these missing months and maintain the statistical integrity of the report, the agency adjusted its weighting methodology before publishing the final comprehensive dataset.
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