Nearly half of Europeans’ household spending goes on basic needs

In January 2026, 46% of total household consumer expenditure in the European Union was allocated to three categories: food and non-alcoholic beverages; housing, including water and energy; and transport.

The concentration of almost half of household budgets on basic necessities is particularly significant following the substantial price increases recorded in recent years across all three categories.

According to EUROSTAT data, housing is therefore at the heart of the pressure on disposable income, not only because of rising purchase prices and rents in many European housing markets, but also because the same expenditure category includes water and energy. This development is strengthening the debate over affordable housing as an issue that now extends beyond the property market and is directly linked to the overall cost of living.

As for the remaining categories, between January 2025 and January 2026, the share of expenditure allocated to recreation, sport and culture increased by 1.2 percentage points, while spending on restaurants and accommodation rose by 0.3 percentage points and expenditure on education by 0.1 percentage point.

By contrast, the largest decline was recorded in transport, whose share fell by 0.4 percentage points, while expenditure on information and communication decreased by 0.3 percentage points.