In many parts of the U.S. consumers are getting their first cold-weather heating bills. For some, it can be a shock. Fuel oil costs are down nearly 20% in the last 12 months, according to the Consumer Price Index, but other utility costs are up.
A newly released report from doxo shows the average U.S. household now spends $362 per month, marking a 3% increase from the previous year. This analysis, part of doxoINSIGHTS' U.S. Utilities Market Size and Household Spend Report for 2024, found that Americans collectively spend $451 billion a year on utilities, underscoring the growing financial burden on households across the nation.
The report draws on data from 97% of U.S. zip codes, providing a detailed look at household payments for utilities, which include electricity, gas, water, sewer, and waste services. According to the findings, 79% of U.S. households with utility bills spend an average of $362 monthly, equating to $4,344 over 12 months. When averaged across all U.S. households, the annual cost comes to $3,432.
This increase in utility costs coincides with a broader trend of rising electricity prices, which have outpaced inflation rates in 2024, as reported by the U.S. Bureau of Labor Statistics. The U.S. Energy Information Administration forecasts that retail electricity prices will continue to climb across all customer segments in 2025, suggesting that consumers may face even higher bills in the coming months.
An increasing monthly burden
"Americans continue to be hit with factors that impact their utility bills, whether that’s due to the inflation we’ve seen in recent years or the hot temps that drove higher prices over the summer,” said Liz Powell, senior director of INSIGHTS at doxo. “Giving consumers transparency to this data through doxoINSIGHTS empowers them to budget as we head into winter and another peak usage period."
The report also identifies the states and cities with the highest utility bills. Hawaii tops the list with an average monthly bill of $634, followed by Maine and Connecticut. Among U.S. cities, New York leads with a monthly average of $626, with Milwaukee and Pittsburgh also in the top five.
Overall, utility bills account for about 5% of consumers' annual income, highlighting the significant impact of these rising costs on household budgets. Some utility companies offer programs that average the monthly charge over a year, providing lower payments in the summer and winter.