PROPERTY SEARCH
PROPERTY SEARCH
Housing and food now swallow half of Spanish household budgets, new figures reveal
Official statistics show average annual spending has hit a record high, with those on the lowest incomes spending nearly two thirds of everything they have on basic essentials
Ask anyone in Spain how they are finding things financially right now and the answer is likely to be the same. Tight. The numbers published this week by Spain's National Statistics Institute (INE) confirm what most people already feel in their daily lives: the cost of living here has never been higher, and for many families, the margin for anything beyond the basics is shrinking fast.Average household spending reached €35,101 in 2025, a new record, and up more than €1,000 on the previous year. Housing and food together now account for nearly half of that total, 49.2% on average. For those on the lowest incomes, the situation is considerably harder. These households are spending 61.5% of everything they have on mortgage or rent payments, electricity, gas, water and home maintenance. Rent or mortgage alone consumes 42% of their budget, well above the 35% threshold the Bank of Spain flags as a financial risk.
The contrast with better-off households is stark. Those with the highest spending power put less than 29% of their budget towards housing, and direct a third of their outgoings towards transport, restaurants, leisure and culture. For the poorest households, that discretionary spending is barely 15.7%.
Food costs tell their own story. Households spent an average of €5,626 filling the shopping basket in 2025, up 16% on the previous year. Transport consumed a further €4,020, up 4%. Average spending per person across all households reached €14,066.
Over a decade, the cumulative pressure on housing costs has been severe. What families pay for their home, including utilities and upkeep, has risen by 33% in ten years, making it by far the fastest-growing essential expense.
It is perhaps no surprise then that a recent survey in the Balearic Islands found that 89% of people in Mallorca cited the increase in prices as their single biggest worry, with access to housing close behind at 81.2%. These are not abstract statistics for most people. They reflect real anxiety about making ends meet.
The figures arrive against a backdrop of sustained financial pressure on Spanish households. Earlier this year, the government announced a major support package as inflation hit an 11-year high, driven by rising fuel, energy and food costs. Electricity bills have continued to bite, with wholesale prices surging during Spain's first heatwave of the summer and the return of full VAT on energy adding further strain.
Regionally, spending varies considerably. The Basque Country and Madrid record the highest average expenditure per person, at €16,642 and €16,124 respectively, while Andalucía, Extremadura and Murcia sit at the lower end, between €12,197 and €12,408.
One small bright spot: spending on tobacco and alcohol fell slightly in 2025, and restaurant and accommodation expenditure also moderated. For most families though, the overall picture remains one of doing more with less.
Image: martineidhammer/Pixabay
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