This is a quantitative study concerning how household expenditure on different groups of commodities changes when there are changes in the income of urban households in North Cyprus. For this purpose a survey is conducted on 300 households from Lefkoşa, Gazimağusa, Girne and Güzelyurt. The information obtained from this survey is used to estimate Engel curves and from them income elasticities. The empirical findings indicate that expenditure on food, rent, electricity, water, gas, household services, transportation and communication are inelastic (less than 1), and expenditure on restaurants, clothing, furniture, health, personal care, culture, education, entertainment, and other commodities are elastic (more than 1). These results show many similarities to various empirical results obtained for Turkey.