Bhutan Household Survey Reveals Sharp Gaps in Spending, Housing and Access to Services

Urban households spend nearly 46% more than rural families

Urban households in Bhutan spend an average of Nu 67,616 a month, compared with Nu 46,331 in rural areas, according to the National Statistics Bureau (NSB). The difference of nearly 46% is among the central findings of the Household Consumption and Expenditure Survey (HCES) 2025, which sets out how spending, housing and access to services vary across the country.

The findings, published by June 26, 2025, put average national household expenditure at Nu 54,387 a month. The gap becomes larger when spending is measured for each person: urban residents spend Nu 22,168 per month, while rural residents spend Nu 14,550.

Bhutan's first survey of this kind draws on responses from 5,883 households across all 20 dzongkhags, or districts. Its results represent 159,808 households and a population of 592,598, giving policymakers a detailed picture of how families allocate their resources.

The survey uses the international COICOP 2018 framework, a system for grouping household consumption into comparable categories. Those categories allow spending on food, housing, transport and other needs to be examined together, while showing where urban and rural experiences diverge.

The findings describe a widening urban and rural divide as Bhutan works toward becoming a high income Gross National Happiness (GNH) economy by 2034. They also show a country in which traditional spending on community, culture and spiritual life continues alongside changing patterns of housing, technology use and consumption.

For families, the differences are concrete: where they live is associated with how much they spend, whether they own their home and how they divide their budgets between food and other expenses.

Thimphu and Trashiyangtse sit at opposite ends

Thimphu records the highest average monthly household expenditure among the districts, at Nu 73,632. Trashiyangtse has the lowest, at Nu 26,934. The distance between those figures shows how much the national average can conceal differences between places.

Paro and Thimphu are almost level at the top when expenditure is measured per person, with monthly spending just above Nu 24,000. Trashiyangtse again records the lowest figure, at Nu 9,025 per person.

Household expenditure and expenditure per person answer different questions. The first describes the resources used by a household as a whole. The second helps show how spending varies once the number of people sharing those resources is taken into account.

Income, living costs and the broader economic changes taking place in urban centres all help explain the geographic differences described in the survey. Access to services and differences in daily life also shape the purchases families make.

Household size adds to the spending divide

Urban households average 3.6 people, compared with 3.8 in rural areas. The difference is greater across spending groups: households in the top fifth average 2.6 people, while those in the lowest fifth average 4.8.

The wealthiest 20% of households spend an average of Nu 96,998 a month, almost four times the Nu 25,862 spent by the lowest 20%. On a per person basis, spending exceeds Nu 40,000 in the wealthiest group, compared with Nu 5,545 in the poorest, a gap of more than seven times.

Smaller households among affluent families mean that their greater resources are shared among fewer people. Urban and wealthier households consequently have more disposable income available for each person, adding to differences in consumption.

The growing inequality described in the findings presents a concern for social cohesion and equitable development. National growth and household experience are closely connected: the survey shows why progress needs to be examined across places and spending groups, as well as through a single national figure.

Food takes a larger share of the poorest budgets

Food accounts for 40.5% of total expenditure nationally, equivalent to Nu 7,069 per person each month. For poorer families, it takes up a larger part of the budget, leaving a smaller share for housing, transport, education and other needs.

The poorest households allocate 49.1% of their spending to food, compared with 34.9% among the wealthiest. This pattern is explained by Engel's Law: as household income increases, the proportion spent on food tends to fall, even when the amount spent on food rises.

Urban households spend more on food in absolute terms. Their average monthly food expenditure is Nu 23,728 per household and Nu 9,126 per person, compared with Nu 17,194 per household and Nu 5,816 per person in rural areas. Food nevertheless represents a smaller share of urban budgets.

Cereals and cereal products account for the largest share of food spending, at 21.4%. Dairy and oils follow at 19.5%, vegetables at 15.5%, and meat and fish at 12.9%.

Rural households devote a larger share of food expenditure to staples such as cereals, while urban consumers spend more on foods rich in protein, including meat and dairy. The figures describe differences in both the size of food budgets and the kinds of food purchased.

District figures also show the role of regional diets and economic conditions. Cereal expenditure ranges from Nu 10,371 in Trongsa to Nu 2,811 in Samdrupjongkhar, illustrating the variation behind the national food basket.

Housing separates urban renters from rural owners

Spending beyond food accounts for 59.5% of national expenditure, or Nu 10,365 per person each month. This category includes housing, utilities, transport, education and health, making it central to understanding how living arrangements affect family budgets.

Urban households spend Nu 40,299 a month on these items, compared with Nu 27,583 in rural areas. Per person, the corresponding figures are Nu 13,042 and Nu 8,735. Differences in access to services, lifestyles and spending priorities contribute to the gap.

Housing is a major part of this expenditure, especially in urban areas. Nearly 67% of urban households live in apartments, while more than 82% of rural households live in standalone houses.

Home ownership follows a sharply different pattern. Some 75.8% of rural households own their homes, compared with 16% in urban centres. The contrast reflects cultural traditions as well as conditions in urban property markets.

Urban housing costs average Nu 9,283 a month, with Thimphu and Phuentsholing recording the highest expenses. Rural households face higher property maintenance costs, although a much greater share own their homes.

The housing figures help explain why a larger urban budget can come with substantial regular commitments. Rural ownership and urban apartment living create different demands on household resources, even before food, travel or education are considered.

Electricity access is widespread, but digital spending differs

Electricity reaches 99.6% of households, making access nearly universal. Electricity and liquefied petroleum gas (LPG) are the dominant cooking fuels nationwide, although fuel choices and expenditure still differ between urban and rural homes.

Urban households spend more on electricity. Rural families rely more heavily on fuelwood, reflecting continuing gaps in infrastructure despite the broad reach of electricity connections.

Information and communication technology (ICT) presents another divide. Urban households spend nearly twice the rural average on this category, which includes software and mobile data.

Those differences matter as technology becomes part of education, employment and participation in society. The survey places digital spending alongside housing and utilities as another area in which urban and rural households experience Bhutan's modernisation differently.

Transport, education and health show different priorities

Transport is a growing expense, particularly in urban areas. Urban households spend more on vehicle purchases and public transport, with monthly transport spending in Thimphu Thromde reported as high as Nu 73,035.

Rural families spend more on maintaining and operating their vehicles. Their pattern reflects different mobility needs and infrastructure, while the urban figures include greater expenditure on buying vehicles and using public transport.

Education expenditure is nearly twice as high among urban households as among rural households. Tertiary education accounts for almost half of all spending related to education, making it a major part of the household education budget.

The urban difference reflects greater access to educational institutions and higher aspirations among urban families. Together, those factors help shape how much households devote to study beyond their other daily expenses.

Healthcare expenditure is also higher in urban areas, where households have better access to medical facilities and services. Rural households rely more on medications and traditional healing practices.

Households headed by women spend more on health, education, ICT and personal care. The pattern shows that the gender of the household head is another factor associated with how resources are allocated, alongside location, household size and spending level.

Culture and spiritual travel remain part of family budgets

Bhutanese households continue to devote substantial resources to special family occasions, cultural activities and spiritual travel. These expenses form part of the same household budgets that cover food, housing, education and transport.

Average national spending on neykor, or spiritual travel, is Nu 4,072 a month. Households headed by women lead spending on cultural and religious travel.

Rural families spend more on garden and pet care, while urban households devote more to recreational services. The differences add another dimension to the survey's account of everyday life, extending beyond basic needs to how families use their time and sustain their surroundings.

Tradition, community and spirituality remain important in Bhutan even as economic and social conditions change. Including these categories gives the survey a broader account of household priorities than spending on necessities alone would provide.

How the figures will inform economic decisions

The National Statistics Bureau's survey is intended to support decisions about inequality and inclusive growth. Its detailed categories help the government identify differences in household needs and design targeted interventions.

Consumption figures also feed into gross domestic product (GDP), the measure of economic output. Under the expenditure approach to GDP, household consumption is one of the major components, so a better estimate of what families consume helps improve the national calculation.

Sonam Tobgay, Deputy Chief Statistical Officer at the NSB, described why conducting the survey regularly matters for those estimates:

Regular household consumption and expenditure survey will lead to better household consumption estimate for better GDP, which is one of the major components of GDP by expenditure.

The findings will also help update the Consumer Price Index (CPI), which tracks changes in consumer prices. Household spending patterns help determine how different purchases are represented in that measure.

Bhutan's goal of becoming a high income GNH economy by 2034 gives this work a wider purpose. Repeated measurement of consumption and expenditure will help track progress and show how the benefits of growth reach different groups.

The 2025 findings identify the main areas requiring attention: large gaps in spending per person, contrasting housing arrangements, different food budgets and unequal expenditure on services and technology. They give policymakers a detailed starting point for connecting national economic ambitions with household living conditions.

Key Points

• HCES 2025 surveyed 5,883 households across all 20 districts, representing 159,808 households and 592,598 people.
• Urban households spend Nu 67,616 a month, nearly 46% more than the rural average of Nu 46,331.
• The wealthiest fifth spend more than Nu 40,000 per person monthly, compared with Nu 5,545 among the poorest fifth.
• Food accounts for 40.5% of expenditure nationally, with poorer households allocating a larger share of their budgets to it.
• Rural home ownership stands at 75.8%, compared with 16% in urban centres, where housing costs are higher.
• Urban households spend more on technology, education and healthcare, while rural spending patterns reflect different access, needs and living arrangements.
• Households headed by women spend more on health, education, ICT and personal care, and lead spending on cultural and religious travel.
• The survey will inform GDP estimates, updates to the CPI and policies supporting Bhutan's development goal for 2034.