Americans now spend $532 billion annually on utilities, with median household costs reaching $4,168 a year
New doxoINSIGHTS reports reveal the most and least expensive states and cities for essential services
Rising energy demand, infrastructure investments, and price volatility push household utility costs up 15% in five years
As AI-driven energy consumption grows, infrastructure upgrades accelerate, and utilities turn increasingly toward renewables, the cost of keeping the lights on continues to climb for U.S. households.
New data from doxo’s 2025 Utilities Market Size and Household Spending Reports reveals Americans now spend $532 billion each year on essential utility services — and many families are feeling the strain.
The analysis, covering four core utility categories – electric, gas, water & sewer, and waste & recycling – across 97% of U.S. ZIP codes, shows that the median household now pays $347 per month, or $4,168 annually, for basic services. Utilities account for 5% of the average household income, underscoring the essential but increasingly costly nature of everyday living.
A growing financial burden
The reports highlight how instability in energy markets, fueled by surging demand from data centers, rising fuel costs, and major grid investments, has pushed prices sharply higher:
Electricity prices rose 6.2% over the past year and nearly 20% over five years, including a 7% rise in 2025 alone.
Gas utility prices jumped 13.8% in the last year and are up 25% over five years, following supply shocks and global fuel disruptions in 2022–2023.
Water & sewer (+4.8%) and waste & recycling (+6.5%) saw more gradual but steady increases tied to inflation and infrastructure upgrades.
All told, household utility costs have increased roughly 15% since 2020, outpacing wage growth in many regions.
“American families are navigating a perfect storm of rising utility costs,” said Steve Shivers, co-founder and CEO of doxo. He noted that sweeping infrastructure modernization and surging energy demand are converging, “resulting in more costs being passed to households.”
Utility spending by category
The reports break down how much Americans spend across the four major utility categories:
Electric Utilities
Market size: $217B annually
Median bill: $120/month ($1,440/year)
90% of households pay for electric services
Represents 5% of total household bill payments
Water & Sewer
Market size: $129B
Median bill: $86/month ($1,036/year)
Paid by 72% of households
Gas Utilities
Market size: $110B
Median bill: $71/month ($852/year)
Paid by 66% of households
Waste & Recycling
Market size: $75B
Median bill: $70/month ($840/year)
Paid by 53% of households
Where utilities cost the most
Maryland tops the list of most expensive states, with a median monthly utility cost of $546, driven by some of the nation’s highest water & sewer and waste & recycling bills.
Top 10 Most Expensive States (Median Monthly Total)
Maryland – $546
Connecticut – $488
Massachusetts – $481
Washington – $466
Hawaii – $447
Alaska – $445
Rhode Island – $438
New Jersey – $435
Maine – $430
Vermont – $425
Large cities with the highest utility costs
New York City leads all major U.S. cities with a staggering $853 median monthly utility bill, driven primarily by an exceptionally high median waste & recycling charge of $517 per month.
Top 10 Most Expensive Large Cities (Median Monthly Total)
New York, NY – $853
Milwaukee, WI – $588
San Jose, CA – $579
San Francisco, CA – $545
Baltimore, MD – $503
Memphis, TN – $497
Seattle, WA – $493
Washington, DC – $478
San Diego, CA – $469
Detroit, MI – $461