The cost of staying home is rising too

Entertainment costs have been climbing for years, with pricier concerts, sporting events, and social outings. Now, consumers are finding it harder to afford fun at home too.

Even simple at-home entertainment is more expensive, forcing many Americans to cut back on video games, streaming services, and other leisure activities as companies increase prices across the board.

According to data analyzed by PNC Financial Services for CNBC, spending by Gen Z and Millennials dropped by about 4%, leading economists to say funflation has expanded from concerts and travel into home leisure.

Consumers spent less on home entertainment in June than a year ago, particularly on gaming and streaming.

Gaming has been hit by persistently high console prices, driven in part by tariffs and AI-related demand for memory chips. At the same time, streaming platforms such as Netflix, Prime Video, Spotify, Paramount+, and YouTube Premium have increased subscription prices.

Economists say rising electricity bills and higher entertainment costs are adding to financial stress, reducing disposable income, and contributing to weaker consumer confidence as households struggle to balance everyday expenses with affordable ways to relax.