U.S. Households Spend $4,361 a Year on Utilities as Costs Continue to Rise, doxo Reports
American households are facing steadily increasing utility costs as inflation, infrastructure upgrades, and rising energy demand continue to reshape the nation’s utility landscape. According to five new reports released by doxo, the median U.S. household with utility bills now spends $363 per month, or approximately $4,361 annually, on essential utility services, highlighting the growing financial burden placed on consumers.
The findings come from doxo’s 2026 U.S. Utilities Market Size and Household Spending Report, which analyzed millions of actual bill payments across approximately 97% of U.S. ZIP codes. The research examines spending on four major utility categories—electricity, natural gas, water and sewer, and waste and recycling—providing one of the most comprehensive overviews of household utility expenses in the United States.
Utility Spending Reaches $582 Billion Annually
According to the report, Americans collectively spend approximately $582 billion every year on utility services. These expenses represent a significant share of household budgets, accounting for roughly 5% of annual household income for families paying utility bills.
Compared with the previous year, the median annual utility cost increased by 4.63%, reflecting ongoing price adjustments across multiple utility sectors. While utility costs vary considerably depending on geographic location, infrastructure, climate, and local regulations, the report indicates that households nationwide continue to experience higher monthly expenses.
The study also provides detailed state-by-state and city-by-city comparisons, helping consumers understand how their utility costs compare with regional averages.
Electricity Remains the Largest Household Utility Expense
Electricity continues to account for the largest share of residential utility spending in the United States.
The report estimates the total U.S. electric utility market at approximately $234 billion annually. The median household pays $128 per month, equivalent to about $1,533 each year, representing a 6.46% increase from the previous year’s findings.
Approximately 90% of U.S. households pay electric utility bills, making electricity the most universally paid utility service.
Several factors continue to influence electricity costs, including:
- Expanding electricity demand across residential and commercial sectors.
- Ongoing investments in electric grid modernization.
- Infrastructure replacement and reliability improvements.
- Changing wholesale fuel prices.
- Increasing electricity consumption from emerging technologies, including artificial intelligence-driven data centers.
These trends have contributed to rising electric bills in many regions while utilities continue investing in system resilience and capacity expansion.
Water and Sewer Costs Continue to Increase
Water and sewer services remain another significant household expense.
According to the report, the U.S. water and sewer utility market totals approximately $139 billion annually. The median household spends $89 per month, or approximately $1,065 each year.
Annual household water and sewer costs increased 2.80% compared with the previous report.
Approximately 72% of U.S. households pay separate water and sewer utility bills.
The report notes that water utility costs continue to reflect investments in aging infrastructure, maintenance programs, regulatory compliance, and system modernization projects undertaken by municipalities across the country.
Natural Gas Bills Rise More Than Five Percent
Natural gas also experienced notable increases over the past year.
The report estimates the national gas utility market at approximately $128 billion annually.
Median household spending reached:
- $75 per month
- $900 annually
Annual gas costs increased 5.63% year over year.
Approximately 67% of American households pay natural gas utility bills.
Although global energy markets have become more stable compared with previous years, regional supply conditions, seasonal demand, and infrastructure costs continue to influence residential natural gas prices.
Waste and Recycling Expenses Continue Climbing
Waste collection and recycling services also posted modest increases.
The report estimates this market at approximately $80 billion annually.
Typical household spending includes:
- $72 per month
- $863 annually
Annual costs increased 2.74% from last year.
Approximately 54% of U.S. households pay separate waste and recycling bills.
Municipal operating expenses, landfill management costs, equipment replacement, labor expenses, and recycling program investments continue to influence pricing across many communities.
Utility Costs Reflect Broader Economic Trends
The report suggests that multiple economic and infrastructure factors continue influencing utility pricing across the country.
Electricity experienced the largest annual increase among the four utility categories measured, driven by growing demand and continued investment in transmission and distribution infrastructure.
Meanwhile, water and wastewater providers continue investing heavily in aging pipelines, treatment facilities, and regulatory compliance, contributing to gradual increases in customer bills.
Waste management providers likewise face increasing operational expenses tied to equipment, labor, environmental regulations, and disposal costs.
Natural gas prices also increased, although market conditions have generally stabilized following recent global energy market volatility.
Together, these trends are contributing to steadily rising utility expenses for households across the United States.
doxo Highlights Consumer Budget Pressures
Steve Shivers, Co-founder and CEO of doxo, said many American families are experiencing growing financial pressure as utility costs continue to increase.
He noted that infrastructure transformation projects, expanding energy demand, and utility system investments are contributing to higher costs that are ultimately reflected in residential bills. He also emphasized the company’s goal of helping consumers better understand, monitor, and manage recurring household expenses through improved payment transparency and budgeting tools.
Maryland Tops the List of Most Expensive States
The report ranks Maryland as the most expensive state for combined household utility costs.
The state’s median monthly utility bill reaches $625, considerably above the national median.
Other states with the highest combined monthly utility costs include:
- Maryland — $625
- Connecticut — $510
- Massachusetts — $509
- Vermont — $488
- Alaska — $481
- Wisconsin — $480
- Hawaii — $473
- Washington — $473
- New Jersey — $464
- Rhode Island — $451
These higher costs reflect varying combinations of electricity rates, natural gas prices, water and sewer charges, waste management fees, climate conditions, and infrastructure investments unique to each state.
New York City Records the Highest Utility Costs Among Large Cities
Among the nation’s largest metropolitan areas, New York City posted the highest median monthly utility bill at $805, significantly exceeding the national average.
Other cities ranking among the most expensive include:
- New York, New York — $805
- San Jose, California — $602
- Milwaukee, Wisconsin — $579
- Cincinnati, Ohio — $567
- Memphis, Tennessee — $525
- Baltimore, Maryland — $516
- Dallas, Texas — $513
- Seattle, Washington — $507
- Rochester, New York — $496
- Detroit, Michigan — $487
The report notes that utility costs vary substantially by city because of differences in local utility providers, municipal infrastructure, climate, customer usage patterns, and regulatory structures.
Geographic Differences Remain Significant
One of the report’s key findings is the substantial variation in utility expenses across different regions of the United States.
Factors contributing to these differences include:
- Regional climate and seasonal energy demand.
- Local electricity generation sources.
- Water availability and treatment requirements.
- Population density.
- Infrastructure age and modernization efforts.
- Municipal service structures.
- State and local regulatory policies.
As utilities continue upgrading electric grids, replacing aging water infrastructure, expanding renewable energy integration, and improving service reliability, many of these investments may continue influencing customer bills in coming years.
Comprehensive Snapshot of Household Utility Spending
The 2026 doxo utility reports provide a detailed picture of household utility spending across the United States, offering insights into both national trends and regional differences. With Americans collectively spending an estimated $582 billion annually on electricity, gas, water and sewer, and waste and recycling services, utility bills remain one of the largest recurring household expenses.
The findings indicate that rising infrastructure investment, evolving energy demand, and broader economic conditions continue to shape utility costs nationwide. As households increasingly seek ways to manage recurring expenses, the reports offer valuable benchmarks for comparing utility spending across states, cities, and local communities while illustrating the ongoing financial impact of essential utility services on American consumers.
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