April 27, 2009 (The Editor’s Desk is updated each business day.)

Housing expenditures in 2007

Housing expenditures, the largest component of spending, rose 3.4 percent in 2007, following a 7.9-percent increase in 2006. By comparison, housing expenditures rose 9.0 percent in 2005 and 3.6 percent in 2004.

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The share of total expenditures allocated to housing increased over the last 3 years, from 32.7 percent in 2005, to 33.8 percent in 2006, to 34.1 percent in 2007.

There were increases across several of the housing expenditure subcomponents in 2007. Spending on shelter increased 3.6 percent, following a 9.9-percent increase in 2006. In the owned dwellings subcomponent of shelter, expenditures on mortgage interest and charges increased 3.7 percent in 2007, less than the increase of 13.1 percent in 2006.

Spending on the other subcomponents of shelter rose 0.5 percent for rented dwellings and 21.9 percent for other lodging in 2007, compared with increases of 10.4 percent and 12.9 percent, respectively, in 2006. Expenditures for utilities, fuels, and public services increased 2.4 percent, lower than the 6.7-percent increase in 2006. The 3.0-percent increase in the CPI for fuels and utilities in 2007 was close to the change in spending.

These data are from the Consumer Expenditure Survey. Find out more in “Consumer Expenditures in 2007,” (PDF), BLS Report 1016. The components of housing expenditures are shelter (which is the largest component); utilities, fuels, and public services; household operations; housekeeping supplies; and housefurnishings and equipment.