Housing and food now consume nearly half of US household budgets, the highest in 15 years.

In 2025, American households spent 46.9% of their budgets on housing and food, the largest share in 15 years, driven by rising costs in rent and groceries. Housing expenses rose to 33.9% and food to 13.0% of total spending, squeezing discretionary budgets and shifting consumer behavior toward essentials. This trend boosted consumer staples stocks like Walmart and Costco, as shoppers trade down to discount retailers amid falling real wages and inflation pressures. The outlook depends on whether these staples stocks can sustain gains amid ongoing economic challenges and margin pressures from rising protein costs.

Consumer staples stocks like Walmart and Costco have seen gains consistent with the increased spending on essentials noted in the news. As of Oct 31, 2026 22:41 WIB, XLP trades near its 52-week high at USD 89.42, up 1.41% on the day. Walmart is priced at USD 123.51, closer to its 52-week low of USD 100.61, with a 1-day rise of 1.86%, while Costco trades at USD 1,012.38, slightly below its 52-week high of USD 1.09K, up 1.64% for the day. These price moves reflect investor interest in staples amid economic pressures.