Household expenditures in the Valencia Community rebounded strongly over the past year, matching higher levels of economic and social activity after the pandemic. The surge pushed total consumption above pre-pandemic benchmarks in nominal terms, although the growth in real terms remains somewhat dampened by inflation. This momentum marks a second consecutive year with higher spending than in 2019 before the health crisis, signaling a significant recovery in living costs, energy use, and gasoline consumption.
According to the INE Family Budget Survey, the average household expenditure on autonomy rose to 29,969 euros last year, up 1,911 euros from the previous period and 6.8% higher. This figure surpassed the pre-pandemic level of 29,444 euros by 1.8%. The increase is slightly below the national pace, which reached 31,568 euros per household. The INE notes that without inflation, national growth would have been around 2%; this comparison across autonomous regions is not provided, and similar patterns persist when contrasting with 2019, where families spent 4.4% more than before the pandemic in nominal terms, yet real consumption remained 3.2% lower once price rises are accounted for.
When breaking down the spending by category, housing remains the largest item and also the biggest driver of growth, totaling 9,398 euros, up 440 euros from the prior year. This rise reflects higher rent, real estate costs, and related materials. Electricity expenses rose to an averaged 161 euros more per household, underscoring energy price pressures during the period.
The second-largest uptick occurred in foodservice—restaurants and hotels—where Valencians increased expenditure by 432 euros to 2,776 euros per family per year, a 2021 benchmark that reflects both inflation and the revival of social life, which did not normalize until the second quarter of the previous year. Despite this growth, spending on bars, restaurants, and tourism still lagged 172 euros behind pre-pandemic levels last year.
Similarly, spending on entertainment and culture rose by 218 euros to a total of 1,542 euros per household annually, yet remained 235 euros below 2019 figures. Transportation also saw a notable rise of 386 euros, reaching 3,581 euros per year. Fuel price increases contributed to this shift, prompting government measures such as a temporary fuel tax cut. Even with these reductions, households in Valencia paid about 264 euros more for fuel, while vehicle service costs rose by 162 euros.
Food and beverage purchases averaged 4,710 euros per household, a rise of 146 euros from the prior year, roughly 600 euros above pre-pandemic levels. This shift suggests that at least some changes in consumer habits have persisted into the current period.
Additionally, spending on hairdressing and other personal care services rose with the return of social life, with households dedicating more than 50 euros per year to these services on average.
In Alicante, workers have experienced a loss of purchasing power estimated at approximately 1,300 euros over two years, reflecting broader regional economic dynamics. The few declines occurred in categories such as alcoholic beverages and tobacco, which dropped by about 72 euros, furniture and home appliances by around 16 euros, and communications due to lower telephone tariffs by roughly 40 euros. Education-related spending in telephone costs also fell by about 29 euros.
Nationwide, Madrid households reported the highest annual income, around 36,197 euros, while Extremadura showed the lowest, at roughly 26,634 euros.