The average cost of utilities for a house is a guideline to understanding the expense of your utilities and how it affects your utility budget. With added insight of how you can minimize your cost of living, you can better manage your utility bills.
It’s worth remembering that this is a national average cost of utilities for a house. Depending on where you live and your lifestyle, your monthly utility costs are likely different.
In this guide, we’ll discuss the basic utilities and the average cost of each. In addition, we’ll talk about ways you can manage your cost of living more effectively.
What Is the Average Cost of Utilities for a House?
In 2019, two- and three-bedroom homes accounted for more than half of occupied housing in the U.S. Three-bedroom homes accounted for nearly 40% of houses, while two-bedroom homes made up over 25% of housing stock.
We’ll consider the cost of utilities for a midsize home for our purposes. The average utility bill for a one-bedroom apartment will be lower, all other factors being equal. All told, the average cost of utilities for a house is about $400 per month.
Remember, this reflects a national average; your bills may be higher or lower depending on many factors.
What Affects My Utility Bills?
Several factors influence the price of your electricity. They include:
- The cost of fuel to generate electricity.
- Supply disruptions (including weather or damage to infrastructure) can cause price fluctuations.
- Power plant costs also affect prices. In addition to operating costs, things such as financing, construction, and maintenance influence the price of your electricity.
- As with power plants, transmission and distribution systems have similar costs.
- Weather, such as extreme heat or cold, increases demand, which increases the cost to you. Severe weather can also impact transmission or distribution systems, driving up your cost.
- In some states, such as California and New York, a public utility or service commission regulates energy prices. Other states, such as Texas, are deregulated — that means Texas energy costs are competitively based.
Your natural gas costs are also affected by many of the same factors.
Water and sewage utilities also have the same infrastructure, maintenance, and operational costs.
What Other Factors Affect My Utility Bills?
Your energy costs depend on where you live and the weather there. In warmer states, like New Mexico, South Carolina, or Florida, the climate may not require you to heat your home for as many months as Alaska, Idaho, or Wisconsin. However, warmer weather can also mean higher energy bills during the summer because of air conditioning expenses.
The key is demand. When the need for energy is high, it costs your provider more to ensure adequate energy supplies. As a result, you’ll see higher prices. For example, a severe cold snap or a heat wave often means people’s energy consumption increases because they’re running their HVAC.
To a large degree, your water bill will also depend on how you use water and where you live. For example, if you live in the dry West, expect your monthly water bill to be higher than the Pacific Northwest, where water is more plentiful.
Consumption is just as crucial as location when it comes to the average cost of utilities for a house. It’s simple logic: the more you use, the more it will cost you.
What Are the Basic Utilities?
If you’re a homeowner or a renter, you pay for utilities. The essential utilities include gas, electricity, and water/sewage. However, most people also pay for telephone, internet service, trash removal, and cable TV.
If you rent a one- or two-bedroom apartment, your landlord may include some of your utilities in your rent. It’s not uncommon for water and sewage or trash pickup to be included in the rent.
As a homeowner, you’re on the hook for all of your utility costs.
How Do My Monthly Utility Costs Break Down?
Your energy bills will vary from month to month simply because your energy usage will differ. You’re billed in kilowatt-hours for electricity, and your gas bill is usually calculated in cubic feet or therms.
How Is My Electric Bill Calculated?
Your electric bill may be either a tiered-use plan or a time-of-use plan. A tiered-use plan includes a baseline allowance and higher, tiered charges for energy consumption over the baseline. A time-of-use plan sets aside a specific period when your per-unit energy costs are higher than at other times of the day.
According to the U.S. Energy Information Administration (EIA), the national average for residential energy in December 2021 was about 13.75 cents/kWh. That average includes the high cost of electricity in Hawaii, nearly 36 cents/kWh, and lower average prices in Washington (10.07 cents/kWh) and Utah (10.17 cents/kWh). So at an average household usage of 893 kWh/month, your monthly electric bill will cost you $125 on average, plus your utility company’s surcharges.
Making Sense of Your Natural Gas Bill
More than likely, you use natural gas to heat your home and run your water heater. However, those costs will also vary from month to month and season to season.
The rates for your monthly bill are usually calculated using therms. A therm is 100 cubic feet or 1 Ccf of natural gas. A thousand cubic feet (Mcf) is 10 therms. Nationally, the residential average gas price was $10.84/Mcf in 2020.
Natural gas consumption varies by season — more in the winter, a little less in the summer. Over a year, you’re likely to use about 500 therms— or an average of 41.7 therms/month — roughly $45/month. So in colder winter climates, such as Connecticut, Maine, or Colorado, you can expect your gas bill to be higher.
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How Is My Water/Sewer Billed?
Water and sewer monthly costs tend to be more constant, although landscape irrigation will impact your water bill seasonally. Usually, the water company’s bill includes your monthly sewer charges.
Your water bill is usually calculated per 100 cubic feet or, sometimes, in gallons. For example, 100 cubic feet (CCF or HCF) equals 748 gallons.
Water companies use different rate plans, and most are based on your water consumption. If you have a flat-rate plan, you pay the same amount per month, regardless of the amount of water you use because the water isn’t metered. However, those plans are rare these days. Instead, a uniform rate meters your water usage but charges one rate regardless of consumption. In addition, most companies charge on a tiered-usage structure that takes water consumption into account.
So then, just how much water can you expect to use? Including drinking water, the washing machine, showers, and the dishwasher, the average household’s water consumption is 80-100 gallons daily. Remember that watering the grass can account for as much as 30% of your water usage.
In some cases, the company will meter the water coming in and the sewage leaving the house. It’s more common, however, for the sewage charge to be based on your water consumption.
Rates for water and sewage vary widely. The size of the house or apartment has less to do with your cost than the number of people living there. The water bill for a three-bedroom home varies between $24 and $60 a month. For averaging purposes, let’s call it $42 per month.
How Much Should I Be Paying for Telephone Service?
Calculating your monthly telephone bill depends on whether you have a landline, a cell phone, or both, as well as your usage. These days, fewer households are choosing landlines, preferring smartphones instead.
In 2020, the average cell phone bill was $127 a month, which often includes the payment plan for your smartphone. The cheapest plans offer unlimited minutes and texts but don’t include data, which smartphones require. Unlimited data plans are popular, and the cheapest is about $65 (Sprint), while the more expensive plans are $75-$80/month.
On the other hand, a basic landline bill runs about $20/month, which doesn’t include long-distance calling. Most monthly plans include unlimited local calls, and some combine local and long-distance calls. The average residential landline service is $42/month if you factor in long-distance calls.
Long-distance rates for landlines are usually billed per minute, and the rates vary from 2.5-10 cents per minute for state-to-state calls. In-state calls tend to be more expensive (3.5-10 cents per minute) than state-to-state, primarily because of taxes.
It isn’t easy to nail down the average monthly cost of phone service because of the wide variety of ways we choose to be connected. Smartphones are ubiquitous, so for our purposes, we’ll follow the trend and assume no landline and an unlimited calling plan that includes data at the cost of $127/month. If you plan to keep your landline, you can estimate your monthly phone bill at $169/month.
What Should I Expect to Pay for My Garbage and Recycling?
If you rent an apartment, the cost of trash pickup is often factored into your rent. If it’s not, or you’re a homeowner, garbage pickup averages $14/month.
How Much Will I Pay For Internet and Cable TV?
The cost of internet service varies by how the service is delivered. Most urban users access the internet along with their cable TV or cellular service. In rural areas, satellite service or point-to-point service is common where fiber or cable options aren’t available, and cell service is less reliable. As a result, the average internet bill is $64/month.
The monthly cable bill varies widely with standalone cable TV. However, many people bundle their internet, cable TV, and phone service. On average, Americans spend $116 per month on internet service and cable for their household. With bundling, you can usually save over individual costs. In addition, streaming services can help reduce the cost of your cable bill — or eliminate it.
How Can I Save On My Utilities?
You can save a significant amount on your energy bill by reducing your consumption. But first, talk with your providers about your utility plans. Chances are there’s a better plan to match your needs.
Concerning your energy costs, simple steps can also save you money.
- Replace your light bulbs with energy-efficient LEDs
- Upgrade your thermostat to a smart programmable thermostat
- Program your smart thermostat to reduce air conditioning and heating when no one’s home
- Install weatherstripping to eliminate air leaks around doors and windows
- Replace your older appliances with Energy Star appliances that are more efficient
- Install a water heater blanket
You can also save on your water consumption by:
- Taking shorter showers
- Installing drip irrigation
- Washing and drying only full loads of laundry
- Installing a low-flow showerhead and aerator faucets
- Installing low-flow toilets
- Fixing leaky faucets
Consider switching to a prepaid plan to reduce your monthly cell phone bill. Paying off your phone is another good way to reduce your monthly cost. If you don’t upgrade your phone, you can also achieve similar savings on your statement.
There are also ways to save on your cable bill. If you’re part of the growing trend and use streaming services, you can nix your premium channels, such as HBO or Disney. You can also switch to a downsized cable plan for monthly savings. Finally, bundle your cable and internet service, but be sure to avoid more expensive packages.
Controlling Monthly Utility Costs: Find Your Own Average
Regardless of the national average cost of utilities for a house, your recurring utility bills can mount up. Factors such as climate, location, and demand influence your costs.
Your monthly bills may seem sky-high, even if you live in a one-bedroom apartment instead of a three-bedroom home. However, you do have some control over your costs. While the price per unit may be fixed, you can control your energy and water consumption.
Even small savings mount up over time, so check your rate plans and look for ways to minimize your costs. Take advantage of your utility’s different rate plans; they’re designed to help you conserve valuable resources like energy and water — and your money.
Efficiency means making every kilowatt-hour, therm, and gallon count. Explore ways to become more efficient in how you use energy and water.
When you identify what you need to support your lifestyle, you’re better equipped to pay less than average. As the saying goes, take care of the cents, and the dollars take care of themselves.
Brought to you by energysavings.com
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