Where you live makes a big difference
of ConsumerAffairs-
doxos 2025 Cost of Bills Index (COBI) Report reveals that U.S. households in the most expensive states pay up to 39% more than the national median for essential bills
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The findings arrive amid the nations first economic contraction in three years, amplifying the importance of localized financial data for consumers facing rising costs.
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San Jose, Calif., leads as the most expensive major city (71% above median), while West Virginia ranks as the most affordable state (44% below median).
A new report from bill payment service doxo unveils the sharp divide in what Americans pay for essential household expenses, depending on where they live. The 2025 Cost of Bills Index (COBI) Report highlights vast differences in core cost-of-living burdens across the country, just as American families are contending with inflation, high interest rates, and a slowing economy.
According to the COBI, which evaluates monthly spending on thirteen key household bills, consumers in California, Hawaii, and New Jersey are spending substantially moreup to 39% above the national medianwhile residents in West Virginia, Mississippi, and Oklahoma are benefiting from much lower costs, paying as much as 44% less than the U.S. median.
The reports release is especially timely, following the first economic contraction in three years and an ongoing squeeze on household finances. The average American household now spends $24,695 annually on core bills, according to doxos earlier 2025 U.S. Household Bill Pay Report. COBI complements this data by offering a clear comparison of where those dollars stretch further, or fall short.
Amid soaring mortgage rates and persistent inflation, Americans need tools to make informed decisions, said Liz Powell, senior director of Insights at doxo. COBI provides localized insight into household spending, empowering consumers to benchmark their costs and explore potential savings.
Ranking the highs and lows
The 2025 COBI ranks states and cities based on a standardized index where 100 represents the national median. Here are the extremes:
Most expensive states
California 139 (+39%)
Hawaii 132 (+32%)
New Jersey 127 (+27%)
Massachusetts 127 (+27%)
Maryland 122 (+22%)
Least expensive states
West Virginia 56 (-44%)
Mississippi 73 (-27%)
Oklahoma 75 (-25%)
Arkansas 75 (-25%)
New Mexico 77 (-23%)
The most expensive cities include San Jose, New York and San Francisco. The least expensive cities include Detroit, Dayton, Ohio and El Paso, Texas.
By using median expenditures instead of averages and disaggregating utilities into gas, electric, waste, and water/sewer, doxo refined its methodology to deliver a more accurate snapshot of household finances.
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Posted: 2025-05-14 13:12:22
