Housing costs account for nearly 40 percent of expenditure lowest incomes

09/07/2015 15:00

Housing costs make up the largest part of the household budget. In the lowest income categories, housing costs account for 39 percent of total household spending, but the share is smaller for higher incomes. Proportionally, higher income groups spend more on clothes, home furnishing articles, transport and recreation, according to the latest figures released by Statistics Netherlands.

Share housing costs lower for higher income brackets

In the lowest income groups, housing costs account for 39 percent of total spending, versus 24 percent for the highest income category. Higher income groups also spend a smaller share of their incomes on drinks and tobacco products, (mobile) phone subscriptions, medicines and local taxes.

Households in the higher income groups, on the other hand, spend more on recreation, home furnishing articles, cultural activities and transport and in hotels and restaurants. The share of these expenses in total household spending adds up to 54 percent, versus 34 percent in the lowest income groups.

The share of food and education is just over 11 percent across all income categories.

Household spending by income category, 2013*

Single parents spend 35 percent less than couples with children

Single-parent families with young children spend more than 2,280 euros on a monthly basis, i.e. 35 percent less than couples with young children. Because their incomes are lower, single parents spend a bigger part of their budget on housing costs. As a result, they spend less on recreation, household appliances and home furnishing articles.

Household spending by composition of the household, 2013*

Figures on recreational expenses are based on Statistics Netherlands’ Budget Survey.