When you buy a home, you are probably focused on list prices and down payments. But don’t overlook the utility bill. From electricity and water to internet and garbage services, these monthly costs increase rapidly and vary widely from home to home.
Whether you’re looking to your home in El Paso, Texas or New Haven, Connecticut, utilities understand the cost of costs, helping you budget smartly from the start. This Redfin guide covers utility costs estimates, factors that affect them, and what a typical homeowner pays monthly.
Key takeout
The average monthly cost of the six most common utilities is around $523. Get utility quotes early from your agent, seller, or local provider. For the top six household utility, the average cost is $523 per month. Costs vary depending on location, home size, usage habits and climate.
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Three ways to estimate utility costs
If you want to get a general idea of how much you’ll spend on a new home utility per month, there are three main ways to get this information.
1. Ask a real estate agent
Real estate agents can help estimate utility costs by checking historical data or annual utility costs for comparability from the seller’s agent. If you are considering estimating utility costs for a rental or apartment, you can ask your landlord or apartment manager instead.
2. Ask the current residents
If possible, ask the current homeowner what to pay each month. No exact invoice is required. It is also useful in the area of the stadium.
3. Ask your utility provider
You can reach out to your local utility provider and ask for a quote where you’ll be traveling. Most businesses can provide an average monthly cost for a given address based on their usage over the past year.
Average utility costs per type
This introduces six utilities to include when estimating monthly expenses ranked as the most expensive.
1. electricity
According to SaveOnenergy, the average electricity bill for 2025 is $146 per month.
2. gas
The bill relies heavily on the season, but according to SOFI, the average gas bill for 2025 is around $90 a month.
3. Sewer
The bill varies widely from state to state, but according to DOXO, the average National Sewerage Bill for 2024 is $86 a month.
4. water
According to Lawn Starters, the national average for a family of four in 2024 is $73 per month.
5. internet
According to Forbes, the average internet bill for 2025 is $65 per month.
6. rubbish
According to Move, the average trash bill is $63 per month.
Total average
Looking at just these six major utilities, the average utility cost of a home is $523 per month.
Factors that affect utility costs
Utility costs vary widely depending on your home, state, size, etc. Therefore, it is important to examine the variables that may affect these costs when estimating.
Location: Utility costs vary widely from state to state due to different energy sources, pricing regulations and infrastructure. Climate: Climate plays a major role in heating and cooling costs, especially. For example, homeowners in cold climates may spend more on heat, whereas homes in hot areas may have higher electricity rates from air conditioning use. Number of residents: Large households can see higher electricity, water and sewerage, and sometimes internet bills due to increased usage. Households with young children and retirees can also see higher bills due to the increased time spent at home. Usage habits: It has a major impact on frequency and efficiency, especially energy, water, gas and sewerage charges. Home Size: The larger the home, the higher the utility bill will usually be. As the area increases, the energy with more heat, coolness and power. Age at home: Older homes could be outdated infrastructure such as less efficient insulation or aging HVAC systems that require more energy. Some new homes have updated systems and latest technology, such as double-pane windows and solar panels, to help reduce utility costs. Inflation: Inflation affects all aspects of the economy, including the rates charged by utility providers. So, we can expect costs to change, like in the economy.
FAQ
How can I reduce utility costs?
This depends on which utility you are trying to save, but here’s a guide.
How does season affect utility costs?
The seasons are particularly affected by increased winter heating needs and increased summer cooling needs.
How do I set up the utility?
First, compile a list of all the utilities you need, each research provider, and schedule a setup with each provider before moving in.
How does the local utility rate structure work?
The local utility rate structure determines how you pay for the utility and can be flat rates, tiered (block) rates, time-of-use (TOU) rates, or real-time, so you should always investigate when setting up a utility provider.
What is the assessment of energy efficiency?
Energy efficiency assessments show how effective they are to use energy that is useful when comparing options to reduce utility costs. HERS (Home Energy Rating System) indexes are an industry for home energy efficiency measurement, meaning lower scores will improve energy performance.
