I don't think anyone's claiming anything about the relative spending on food and housing, nor that it has any bearing on the matter under discussion - I think the claim is that total spending on "essential needs" has remained fairly high and has not become "much better." According to the article you linked, while food, housing, and clothing are now only about 50% of your budget instead of 80%, there's also about 20% on transportation costs, which didn't show up in the 1900 figure. I think those also count as "essential needs." Things are better than in the early 1900s, but not by very much.