New Report Reveals Utility Bills on the Rise as Consumers Spend $351 Per Month, Up 7% Since Last Year
New report finds Americans spend $436 billion on utility bills annually; breaks down the most expensive states and cities for utility usage in the U.S.
SEATTLE–(BUSINESS WIRE)–A new report released today from doxo reveals that Americans spend an average of $351 per month on utilities, up 7% from last year. Through a statistical analysis of actual household payments toward utilities across 97% of U.S. zip codes, doxoINSIGHTS’ U.S. Utilities Market Size and Household Spending Report for 2023 reveals that Americans spend $436 billion annually on utility bills. The findings uncover that 79% of U.S. households with a utility bill spend $351 per month, or $4,212 per year – which equates to $3,327* per year when averaging across all U.S. households. The report breaks out the U.S. household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, largest 50 U.S. cities and cities in the U.S. with more than 40k households.
These doxoINSIGHTS findings come as energy prices have continued soaring upward over the past year, due to complex factors including geopolitical tensions and costs to modernize the grid, with electricity rates reaching an all-time high in September, according to the U.S. Bureau of Labor Statistics. While costs of natural gas are expected to decrease slightly this winter, usage will increase across the country as the weather becomes colder. In line with this forecast, doxo’s data reveals that payments to Utility bills as a whole were up 7% year over year, suggesting that Americans could continue to be in for an expensive winter in terms of paying bills.
“While inflation may be cooling overall, the cost for Americans heating their homes this winter remains high,” said Liz Powell, Senior Director of INSIGHTS at doxo. “Giving consumers access to this level of data through doxoINSIGHTS empowers them to budget for higher than average bills or consider ways to decrease or keep utility usage steady as the temps drop.”
The doxoINSIGHTS 2023 Utilities Market Size and Household Spending Report Findings
doxoINSIGHTS leverages doxo’s unique, aggregate, anonymized bill pay data comprised of actual bill payment activity to confirmed household service providers across the country. The Utilities Market Size and Household Spending Report, inclusive of electric, gas, water & sewer, and waste & recycling, breaks out the household spending market size; percentage of households that pay each bill; and average monthly and annual bill pay costs by state, and U.S. cities based on population. Key findings include the following:
- Total Market Size: $436 billion spent per year
- Average Monthly/Annual Cost: $351 spent per month; $4,212 spent per year
- Percent of Households: 79% of U.S. households pay Utility bills
- Average Annual Cost per U.S. Household: $3,327 per year*
- Percent of Annual Income: Utility bills amount to 7% of consumers’ income per year
States with the Highest Utility Bills
|
State |
Monthly Amount |
Average Yearly Amount* |
Percentage of Households w/ Bill |
|
$633 |
$4,710 |
62% |
|
|
$500 |
$3,300 |
55% |
|
|
$467 |
$4,035 |
72% |
|
|
$463 |
$3,778 |
68% |
|
|
$428 |
$3,184 |
62% |
Access Utility Household Bill Pay Data for all 50 states here.
Largest US Cities With the Highest Utility Bills
|
City |
Monthly Amount |
Average Yearly Amount* |
Percentage of Households w/ Bill |
|
$538 |
$4,196 |
65% |
|
|
$511 |
$3,495 |
57% |
|
|
$455 |
$3,549 |
65% |
|
|
$439 |
$4,320 |
82% |
|
|
$439 |
$3,635 |
69% |
Access Utility Household Bill Pay Data for the Top 50 Largest US Cities here.
For more information, or to view the additional doxoINSIGHTS reports, visit https://www.doxo.com/doxoinsights/.
*Average Monthly Bill x % of Households with Bill x 12 months per year = Average Annual Cost per U.S. Household.
About doxoINSIGHTS
doxoINSIGHTS provides direct insight into household financial health and spending activity by leveraging consumer surveys and doxo’s unique aggregate bill pay data set, comprising actual bill payment activity to confirmed household service providers across the country. doxo data brings together the broadest available data set for analyzing actual household bill payment activity, pulling from over 8 million paying consumers across over 97% of U.S. zip codes. doxo’s payment network covers over 120,000 billers in 45 different service categories and enables payments using bank accounts, credit cards or debit cards. This uniquely broad statistical foundation powers doxo INSIGHTS reports – uncovering key trends for household financial health and bill payment behavior.
About doxo
doxo delivers innovation that transforms the bill pay experience for consumers, billers and financial technology providers. For over 8M consumers, doxo’s all-in-one bill pay makes it simple to organize and pay any bill on any device through a secure checkout. For billers, doxo’s network-driven platform enables online and mobile payments with a ridiculously simple integration, radically lower costs, and game-changing features that are unavailable with legacy bill pay vendors. For fintech partners, doxo delivers financial innovations to consumers across 97% of US Zip Codes, paying from more than 5,000 financial institutions to over 120,000 billers in 45+ service categories. For employees, doxo is a creative, ever-learning team that is passionate about building fintech tools that dramatically improve the bill pay experience. For investors, doxo provides an extraordinary opportunity to invest alongside Jackson Square Ventures, MDV, and Bezos Expeditions to disrupt a market that accounts for over $4T of US Household spend. To learn more about America’s leading bill pay network, visit doxo.com.
Contacts
Dotted Line Communications for doxo
Jenny Davis
press@doxo.com
