When buying a home, most people consider the price, mortgage rates, and property taxes—but what about monthly utility costs? Energy bills can significantly impact your overall housing expenses, making it essential to understand what to expect before purchasing a property. Whether you’re a first-time homebuyer or looking to upgrade, here’s what you need to know about average utility costs and how to keep them in check.
Breaking Down the Average Utility Bills
Utility costs vary based on location, home size, energy efficiency, and usage habits. However, here’s a general breakdown of what homeowners in the U.S. can expect:
- Electricity – The average U.S. household spends around $125–$150 per month on electricity, depending on the home’s size and energy consumption. Heating and cooling make up a significant portion of this cost.
- Natural Gas – Homes using natural gas for heating, cooking, and water heating typically spend $60–$100 per month, with higher costs during colder months.
- Water and Sewer – The average household pays $70–$100 per month for water and sewer services, though this can fluctuate based on location and usage.
- Trash and Recycling – Waste management fees range from $20–$50 per month, depending on the municipality and services offered.
- Internet and Cable – While not a traditional utility, internet and cable services add an average of $75–$150 per month to household expenses.
Factors That Impact Utility Costs
Understanding what affects utility costs can help homeowners and homebuyers budget effectively. Here are a few key factors:
- Home Size and Age – Larger homes and older properties often have higher utility bills due to increased heating and cooling needs or outdated appliances.
- Energy Efficiency – Homes with Energy Star-certified appliances, smart thermostats, and proper insulation tend to have lower utility costs.
- Climate and Location – States with extreme temperatures (hot summers or cold winters) generally see higher electricity and gas bills.
- Personal Usage – Household habits, such as long showers, running multiple appliances, and keeping lights on, can lead to higher bills.
Tips to Reduce Utility Bills
If you’re looking to lower your monthly utility costs, here are some practical strategies:
- Upgrade to Energy-Efficient Appliances – Investing in appliances with an Energy Star rating can reduce electricity consumption.
- Improve Home Insulation – Sealing gaps and upgrading insulation can prevent heat loss in winter and keep your home cooler in summer.
- Use Smart Thermostats – Adjusting your thermostat based on your schedule can cut heating and cooling costs by up to 10% annually.
- Switch to LED Bulbs – LED lighting uses up to 75% less energy than traditional incandescent bulbs.
- Be Mindful of Water Usage – Fixing leaks, using low-flow fixtures, and being conscious of water consumption can reduce bills.
How to Estimate Utility Costs Before Buying a Home
If you’re in the market for a new home, asking about average utility costs can help you budget more accurately. Here are a few ways to gather this information:
- Request Utility Bills – Ask the seller for past utility bills to understand the home’s typical costs.
- Check Local Utility Providers – Many utility companies offer online tools to estimate energy costs based on home size and location.
- Consider a Home Energy Audit – An energy audit can assess a home’s efficiency and suggest improvements.
Final Thoughts
Utility costs are a crucial part of homeownership that shouldn’t be overlooked. By understanding the average expenses and taking steps to reduce energy consumption, you can keep your monthly bills manageable. Whether you’re buying, selling, or simply looking to lower your costs, making energy-efficient choices can help you save money in the long run.
Thinking about buying or selling a home in Minnesota? Let’s chat about how to find an energy-efficient home that fits your budget!
– Jordan Eatherton, Apex Realty Team