Housing expenditure up by 6.2%

Irish households spend a greater proportion of their income on housing than they do on food, a new survey showed today.

The Household Budget Survey, compiled by the Central Statistics Office, also showed a rise in disposable income for the period 2009-2010, and a sharp rise in ownership of consumer electronics, such as games consoles, home computers and mobile phones.

According to the survey, the proportion of total spending on food fell to 16.2 per cent in 2009-2010, compared with 18.2 per cent in 2004-2005.

However, expenditure on housing rose from 12 per cent to 18.2 per cent in the same period. This includes rent, mortgages, maintenance and repair, house insurance and capital investment for extensions and other improvements.

The survey noted that there had been a steady decline on food spending over the past 30 years. In contrast, much of the increase in expenditure on housing happened over the 10 year period between 1999-2000 and 2009-2010, as the property boom took hold.

Between the surveys taken in 1999-2000 and 2009-2010, the proportion of total expenditure related to housing rose from 9.6 per cent to 18.2 per cent.

Households were also investing more in technology. The percentage of households with home computers rose to just over 77 per cent, from 56 per cent in the previous survey.

Almost 39 per cent of households had games consoles, compared with 29 per cent five years previously. And 65 per cent now had two or more television sets in the house, a significant jump from 49 per cent in 2004-2005.

Transport expenditure was lower, dipping by 5 per cent to €116.31 per week as spending on car purchases declined compared to the last survey. However, when the impact of car purchases was excluded, spending on transport rose by 14.2 per cent.

In total, households spend about 3 per cent more every week compared with five years ago. According to the latest survey, the average household spent €810.61 per week for 2009-2010, compared with €787.07 five years earlier.

Gross weekly household income was €1,026.77, about 4 per cent higher the €987.96 recorded five years earlier. Average weekly household disposable income was 5 per cent higher at €885.72.