Electric rates are driving the increase
of ConsumerAffairs-
Americans now spend $532 billion annually on utilities, with median household costs reaching $4,168 a year
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New doxoINSIGHTS reports reveal the most and least expensive states and cities for essential services
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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 doxos 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:
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Electricity prices rose 6.2% over the past year and nearly 20% over five years, including a 7% rise in 2025 alone.
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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 20222023.
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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
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Market size: $217B annually
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Median bill: $120/month ($1,440/year)
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90% of households pay for electric services
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Represents 5% of total household bill payments
Water & Sewer
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Market size: $129B
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Median bill: $86/month ($1,036/year)
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Paid by 72% of households
Gas Utilities
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Market size: $110B
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Median bill: $71/month ($852/year)
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Paid by 66% of households
Waste & Recycling
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Market size: $75B
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Median bill: $70/month ($840/year)
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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 nations highest water & sewer and waste & recycling bills.
Top 10 Most Expensive States (Median Monthly Total)
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Maryland $546
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Connecticut $488
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Massachusetts $481
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Washington $466
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Hawaii $447
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Alaska $445
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Rhode Island $438
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New Jersey $435
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Maine $430
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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)
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New York, NY $853
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Milwaukee, WI $588
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San Jose, CA $579
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San Francisco, CA $545
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Baltimore, MD $503
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Memphis, TN $497
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Seattle, WA $493
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Washington, DC $478
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San Diego, CA $469
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Detroit, MI $461
Posted: 2025-11-20 12:58:52
