US household spending rose 4.3% to $81,905 in 2025 as pre-tax income rose 6.4%

Household income grew faster than spending in 2025

The Bureau of Labor Statistics (BLS) Consumer Expenditure Survey tracks what households, which it calls consumer units, earn and spend each year. It shows how family budgets change over time. Average annual expenditures were $81,905 in 2025, up from $78,535 in 2024. Income before taxes rose 6.4% to $110,847.

Housing costs drove spending, while transportation barely grew

• Housing: $27,790, up 5.8%. It still takes about a third of the budget.
• Transportation: $13,492, up only 1.3%. This was the weakest of the major categories.
• Healthcare: $6,470, up 4.4%.
• Food at home: $6,491, up 4.3%.
• Food away from home: $4,142, up 5.0%.

Savings balances were flat, except for the lowest-income households

The average household held $22,192 in savings, checking and money market accounts and certificates of deposit (CDs). That compares with $22,204 in 2024. It is still below the 2022 peak of $23,551. For the fifth of households with the lowest incomes, these balances rose to $10,457 from $9,225.

Spending on beef roasts nearly doubled

Among the detailed food items, spending on roasts was $106 in 2025. That is up from $56 in 2024 and $38 in 2023. Figures for detailed items like this one can swing widely from year to year. Spending on bread rose to $137 from $132. Spending on flour and prepared flour mixes was $30, compared with $31.