MacroSnaps17 October 2026
No. 98

A century ago food ate over 40% of the American household budget; today it is barely an eighth.

How the US household budget divides, 1901 to 2024. Percent of spending. Food (bottom) has shrunk from over 40% to about an eighth as housing and health care grew.
Food13%(2024)Housing33%(2024)Transport17%(2024)Health care8%(2024)Everything else29%(2024)

How the US household budget divides, 1901 to 2024. Percent of spending. Food (bottom) has shrunk from over 40% to about an eighth as housing and health care grew.

Why this is happening
  • Farm productivity exploded: mechanisation, fertiliser, hybrid seeds and better logistics meant ever fewer farmers fed ever more people, so food got cheaper in real terms decade after decade.
  • Incomes rose far faster than food prices, so even as families ate more and ate out more, food shrank as a slice of the budget.
  • What food gave up, housing and health care took: both claim a bigger share of the budget than they did a century ago.
The take

The quiet miracle of farm productivity freed up most of a household budget for everything else, the foundation of the modern consumer economy. When food stops eating your paycheque, you can buy a life.

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The underlying data

MacroSnaps drew this chart. The numbers in it are published by US Bureau of Labor Statistics, Consumer Expenditure Survey. Their terms, not ours, govern the underlying data.