Utility costs cover essential services we rely on daily, such as electricity, water, and gas, which keep our homes functional and comfortable.
Prices for these basics have been going up since 2020 due to inflation. For example, in 2022, electricity costs rose by a whopping 14.3%, according to the U.S. Bureau of Labor Statistics. That’s more than double the overall price increase!
On average, Americans spend about $429.33 monthly on utilities, totaling around $5,151.96 annually. This is a significant chunk of our annual expenses, about 10% of our total spending.
Have you ever wondered why utility costs vary depending on where you live? Well, let’s see why. Plus, we’ll explore how some of those costs vary by state, the least and the most expensive state, and give some tips on how to keep your utility bill low, no matter where you live.
Understanding How Location Impacts Utility Costs
So, why do your utility bills seem to fluctuate based on where you live? And why do gas prices vary from state to state? Well, it’s not just random – there are a bunch of factors at play here.
First, think about the size of your place and how you like to keep it comfy. Whether you’re blasting the AC or cranking up the heat, it all adds up.
But it’s not just your habits. Your location matters too. If you’re in a bustling area packed with people, you might end up shelling out more for utilities simply because there’s higher demand.
And let’s not forget where your energy comes from – that makes a big difference. Places powered by renewable energy sources like wind or solar tend to have lower electricity bills compared to those relying on fossil fuels.
Weather is another factor. If you’re in a spot that’s scorching hot or freezing cold, you’re likely to be using more energy to stay comfortable, which means higher bills.
Then there’s the local scene – rules, regulations, and who’s in charge of providing your utilities can all influence prices.
And hey, don’t overlook your area’s cost of living and economic factors – they can definitely impact what you’re shelling out each month. So yeah, where you live can really make a dent in your utility budget.
How Utilities Costs Vary By State
How do utility costs vary from state to state? According to Forbes Home, people in Hawaii and Alaska tend to pay the most for their monthly utilities, while those in Utah and New Mexico pay the least.
Iowa has the highest internet costs at $50, with several states tied at $20 for the lowest rate. When it comes to natural gas bills, Hawaii tops the list at $122, while Oregon has the lowest at $32.
Maryland residents pay the most for streaming services, $52.25, whereas New Mexico residents pay the least, $39.50. Surprisingly, all states have an average monthly phone bill of $114.
Hawaii has the highest energy bill, at $177.78, while Utah has the lowest, at $80.87. California leads in water bills, at $77, while Wisconsin and Vermont have the lowest, at $18.
Twelve states, including Colorado, Idaho, and Minnesota, keep their monthly utility costs under $400.
The Most And Least Expensive States For Utilities
According to data from Move.org in 2020, which states surprise people with their utility bills the most and which ones are a bit easier on the wallet?
States With High Monthly Utility Costs
Connecticut people pay around $108.17 monthly for natural gas and $150.71 for electricity. Alaska is just a little behind, with an average of $122.83 for natural gas.
Hawaii takes the cake with a staggering $168.21 monthly electricity bill. Massachusetts follows closely with electricity costing $125.89 per month.
Rhode Island’s gas and internet costs are $103.42 and $121.62, respectively.
New Hampshire feels the pinch with about $96.50 for natural gas, while in Maine, residents pay about $114.67 for gas and $100.53 for electricity each month.
In South Carolina, electricity’s hitting wallets hard at $144.73 a month.
Maryland’s electric bill is over the national average at $127.92, but Virginia has the highest average monthly utility bill at $378.91.
States With Lower Monthly Utility Costs
On the flip side, in states with lower monthly utility costs, New Mexico is the most affordable, with people paying around $288.54 monthly for utilities. Utah’s got it with cheaper gas at $50.75 monthly. The electricity, and the internet are cheaper too.
Idaho’s natural gas is at just $40.17 a month, and electricity is around $93.83. Colorado’s also looking good with lower gas at $50.92 and electricity bills at $83.07 monthly.
Montana has one of the cheapest natural gas bills in the country at $50.33 a month.
California residents pay around $44.83 for natural gas, Wisconsin’s lower internet and gas bills. Nevada’s natural gas is cheap again, at just $42.75 a month.
Wyoming’s got lower electricity at $96.53 and gas bills at $56.58, and last but not least, Oregon’s got the cheapest electricity and gas bills.
How To Cut Your Utility Bill
Looking to shave off some bucks from your utility bill? Who doesn’t? Well, good news – you can make a dent in that bill regardless of where you’re at. Here’s the scoop on how to do it:
First, keep an eye on that thermostat. When it’s chilly outside, no need to blast the heat when you’re not even home. And in the summer, give it a break when you’re out and about – there’s no point in cooling an empty house.
Got some drafty windows and doors? Swap them out for more efficient ones. It’ll keep your place cozy without making your HVAC system work overtime.
Have you ever considered washing your clothes in cold water? Your washing machine doesn’t need that hot water, and using cold or warm water can save energy.
And speaking of water, getting a more efficient showerhead is a game-changer. They’re not crazy expensive but can reduce your monthly water usage.
Leaky faucets are annoying, but they also cost you money. Fix them up and watch your water bill drop.
Shorter showers might sound sad, but they’re a quick way to slash your water bill. Even cutting just a few minutes off your shower time can make a real dent.
If you’re feeling fancy and have some cash to spare, investing in energy-efficient appliances is a solid move. They might be a bit pricey upfront, but they’ll save you a ton in the long run.This is a great trick on your list of how to save on electric bills.
Oh, and remember those light bulbs. Switching to LED or fluorescent bulbs might seem like a small change, but they use less energy than old halogen bulbs.
