Housing dominates US household budgets while Europeans spend more on food and leisure
Official data show that U.S. families allocate the largest share of their spending to housing, whereas EU households spend more on food, transport and leisure activities.
Data from Eurostat indicate that in 2025 European Union households devote roughly 46 percent of their budgets to food, housing, water and energy, and transport, each around 15 percent. The U.S. Bureau of Labor Statistics shows that in 2024 American households spend half of their income on housing (33 percent) and transport (17 percent), while food accounts for just 13 percent. Doris Speer, a lawyer originally from Michigan now residing in France, explains that U.S. landlords face fewer rent-increase restrictions, which drives the larger housing share.
She also observes that lower food prices and a cultural preference for home-cooked meals raise the European food share, while fast-food options keep U.S. food spending lower. Additionally, extensive mass-transit systems in many European cities reduce transport costs, whereas higher fuel prices in Europe contrast with rising U.S. gasoline costs. Leisure, including restaurants, recreation, sport and culture, consumes a higher portion of European budgets than the U.S., reflecting longer holidays and more regulated working hours.
How this was covered
- Coverage peaked at 7 outlets in a single hour
Why it matters
Understanding spending differences highlights how housing markets and social policies shape everyday costs for consumers on both sides of the Atlantic.
In this story
