How Much Do Utilities Cost Per Month?

Utilities are the essential services that keep your home comfortable, energized, and livable. They include:

• Electricity
• Gas (in some areas)
• Water and sewer
• Trash and recycling
• Internet and/or cable

Some utilities are essential, such as electricity and water. While a reliable internet connection may not be a necessity for life, it’s become ingrained in our society. Without it, you won’t be able to stream your favorite content, work from home, complete schoolwork, or shop online.

Budgeting for each utility bill can be tough, as bills fluctuate based on where you live, the season, and your usage habits. Ignoring them in your budget can lead to surprises when bills arrive. For example, running the air conditioner all summer or warming your home in winter can impact your heating and cooling costs.

Consequently, you need to know the average monthly cost of your utilities. You should also identify which months tend to be the most expensive and which ones are cheapest.

Budgeting for utilities like electric, gas, water, and sewer helps you identify ways to save. Small changes, like switching to energy-efficient appliances, can add up over time. Knowing what your average utility bills are can also help you spot potential issues with your home. For instance, if your average electric bill suddenly goes up without warning, you may have an issue with your air conditioner or heating system.

Related: How To Make a Household Budget

Knowing your total monthly utility expenses is a good first step. However, you should also consider the costs of your individual utilities. Here’s a breakdown by type.

Electricity and gas

Electricity, natural gas, and other energy-related bills represent the largest utility costs for many Americans. On average, Americans spend $137 per month on their electric bills. This translates to roughly $1,644 annually. Individuals who pay for gas spend about $64 per month, or $756 annually.

Water and sewer

The average sewer bill isn’t calculated separately. Instead, it is bundled with water, as that’s how most municipalities calculate their residents’ bills. The average water bill (with sewer) is $45 per month or $540 annually.

If you live somewhere with a well and septic system, you won’t have a water bill. However, your electricity costs will be slightly higher, as you’ll need to power your well. Taking care of a septic system can also bring additional costs.

Make sure you are accounting for those hidden expenses when looking for a place to live. Some other water-related costs you may encounter when living somewhere with a well include water treatment, quality testing, and well maintenance.

Trash and recycling

Trash and recycling costs are another utility expense that often gets overlooked. Unfortunately, there is a lot of variability here.

Depending on where you live, you may receive a monthly bill for trash and recycling, or it could be assessed as part of your annual tax bill. Some jurisdictions bill separately for trash, while others may include it in your water and sewer bill, especially if all services are managed by the same entity (e.g., city or county government).

On average, trash and recycling bills run between $20 and $80 per month. You may also have the option to pay for a second trash can. That can drive up your costs further.

Internet and streaming

Americans have an average internet bill of $75 per month or $900 annually. Your exact costs will vary based on where you live and which provider/subscription tier you choose. Streaming services are another variable expense. Most streamers offer multiple subscription levels.

The good news is that you have a lot of control over how much you pay for internet and streaming. For example, you could rotate streaming services to save money and keep your monthly internet bills lower.

Make sure to take advantage of deals and bundling options. This can further reduce your monthly expenses. On the other hand, signing up for cable or satellite TV drives your costs back up. While there is nothing wrong with paying for cable if you’ll use it, explore all of your options so you can save as much as possible. After all, no one wants to overpay for internet and TV.

Other than your usage habits, where you live and what type of residence you rent or own will have the biggest impacts on your utility costs. Here’s a closer look at why these factors matter and how you can influence them to keep your monthly utility expenses down.

Apartment vs. houses

Apartments generally have lower utility costs than houses. This is due to their smaller size and shared infrastructure.

For example, your air conditioning and heating bill will be lower for a small apartment compared to a large house. Your air conditioner will be smaller and won’t have to work as hard to cool an apartment. Therefore, it won’t consume as much electricity.

The shared infrastructure aspect matters as well. Suppose that you have an interior apartment that is bordered by other apartments above, below, and to the sides. These structures help insulate your space from outside temperatures. Even if your apartment is roughly the same size as an average home in your area, your overall heating and cooling costs should be much lower.

Many apartment complexes have contracts with local internet and cable companies as well. These agreements may give you access to cheaper bundles, which could reduce your utility expenses even further.

Urban vs. rural

Urban areas often have lower per-unit utility costs due to denser infrastructure. Electricity and internet costs can be lower due to competition among providers. On the other hand, water and trash fees may be higher due to city taxes.

Rural homes often face higher electricity costs because of less efficient grids and distributed infrastructure. However, your water costs may be lower if you have a well.

When deciding between rural and urban living opportunities, consider the difference in utility costs. You should also be mindful of differences such as access and distance to shopping, groceries, and services. Living in a rural area often means paying more in fuel (due to longer commutes) and waiting longer for common services.

Utility cost by state

Because electric bills are usually the highest utility expense, it’s helpful to look at the average monthly electric bill for each state:

• Alabama: $181/month
• Alaska: $144/month
• Arizona: $154/month
• Arkansas: $130/month
• California: $163/month
• Colorado: $101/month
• Connecticut: $190/month
• Delaware: $153/month
• District of Columbia: $103/month
• Florida: $159/month
• Georgia: $156/month
• Hawaii: $204/month
• Idaho: $109/month
• Illinois: $102/month
• Indiana: $137/month
• Iowa: $107/month
• Kansas: $126/month
• Kentucky: $139/month
• Louisiana: $142/month
• Maine: $129/month
• Maryland: $166/month
• Massachusetts: $153/month
• Michigan: $121/month
• Minnesota: $108/month
• Mississippi: $156/month
• Missouri: $134/month
• Montana: $106/month
• Nebraska: $116/month
• Nevada: $128/month
• New Hampshire: $140/month
• New Jersey: $127/month
• New Mexico: $93/month
• New York: $142/month
• North Carolina: $146/month
• North Dakota: $112/month
• Ohio: $147/month
• Oklahoma: $134/month
• Oregon: $129/month
• Pennsylvania: $140/month
• Rhode Island: $161/month
• South Carolina: $151/month
• South Dakota: $126/month
• Tennessee: $152/month
• Texas: $173/month
• Utah: $89/month
• Vermont: $127/month
• Virginia: $154/month
• Washington: $118/month
• West Virginia: $162/month
• Wisconsin: $114/month
• Wyoming: $105/month

Keep in mind that these are broad figures that include apartments, condos, and other small living spaces in the calculations. Your actual utility costs can be much different.

Estimating your utility costs helps you budget accurately. Here’s how to do it:

• Check your home’s size
• Research local rates
• Review past bills
• Factor in your lifestyle
• Use online calculators

The Energy Information Administration (EIA) is a great source of insights and tips to help you come up with accurate estimates.

Reducing your utility bill doesn’t mean sweating it out all summer or shivering on chilly winter nights. Here are some practical tips to save on your utility costs:

• Switch to LED bulbs
• Use a programmable thermostat to control heating and cooling
• Unplug electronics when not in use
• Install low-flow showerheads and faucets
• Fix leaks right away
• Run full loads in dishwashers and washing machines
• Bundle internet and cable for discounts
• Shop around when possible

Understanding your utility costs is essential when looking for a place to live or trying to cut back on expenses. Need more insights to help you choose the right living situation?

Check out CrossCountry Mortgage’s rent vs. buy calculator or connect with our team for personalized tips.