When searching for a new home, it’s easy to focus on the purchase price and down payment, but don’t forget about utility bills. From electricity to water, internet, and trash services, these monthly expenses can quickly add up and vary depending on the property.
Whether you’re considering a home in El Paso, TX, or New Haven, CT, understanding the potential utility costs can help you plan your budget effectively. This guide from Redfin covers how to estimate utility expenses, the factors that influence them, and the average monthly costs for homeowners.
Key points to remember
- The average monthly cost for the six most common utilities is approximately $523.
- Obtain utility estimates early on from your real estate agent, the seller, or local providers.
- For the top 6 household utilities, the average cost is $523 per month.
- Utility costs vary based on location, home size, usage habits, and climate.
Table of contents
3 methods for estimating utility costs
To get a general idea of your monthly utility expenses in your new home, there are three main ways to gather this information:
1. Consult your real estate agent
Real estate agents can help estimate utility costs by reviewing historical data or annual costs of similar properties. If you’re looking at a rental home or apartment, you can ask the landlord or property manager for estimates.
2. Speak to the current resident
If possible, inquire with the current homeowner about their typical monthly utility expenses. Requesting a 12-month usage history can provide a more accurate estimate of your future costs.
3. Contact utility providers
Reach out to local utility companies for an estimate based on your specific address’s past usage. Most providers can offer an average monthly cost for your location.
Average utility costs by type
Here are the six utilities to consider when estimating your monthly expenses, ranked from most to least expensive.
1. Electricity
The average electric bill in 2025 is approximately $146 per month according to SaveOnEnergy.
2. Gas
The average gas bill in 2025 is around $90 per month according to SoFi.
3. Sewer
The national average sewer bill in 2024 is $86 per month according to Doxo.
4. Water
The average water bill for a family of four in 2024 is $73 per month according to Lawn Starter.
5. Internet
The average internet bill in 2025 is $65 per month according to Forbes.
6. Trash
The average trash bill is $63 per month according to Move.
Total average
Considering these six main utilities, the average monthly cost totals $523.
Factors impacting utility costs
Utility expenses can vary based on factors like home size, location, climate, usage habits, and more. Understanding these variables can help in estimating your future costs accurately.
- Location: Utility costs differ by state due to energy sources, pricing regulations, and infrastructure variations.
- Climate: Weather conditions impact heating and cooling costs significantly. Homes in colder regions may spend more on heating, while those in warmer areas may have higher cooling expenses.
- Number of occupants: Larger households tend to have higher utility bills due to increased usage of electricity, water, sewer, and internet.
- Usage habits: The frequency and efficiency of utility usage influence costs, especially energy, water, gas, and sewer bills.
- Home size: Larger homes typically result in higher utility bills as more energy is required for heating, cooling, and powering the space.
- Home age: Older homes may have less efficient infrastructure, while newer homes might feature updated systems like solar panels or energy-efficient appliances.
- Inflation: Changes in the economy, including inflation, can impact utility rates, leading to fluctuations in costs.
According to Kelly Bedrich, heating and cooling account for around 50% of electricity usage. To lower your electricity bill, consider using recommended thermostat settings and conducting a home energy audit after moving in to identify areas where energy is being wasted.
Frequently Asked Questions
How can I reduce utility costs?
Methods for saving on utility expenses vary, but you can find a guide here.
How do seasonal changes affect utility costs?
Seasonal variations, especially in heating and cooling needs, can impact gas and electricity bills.
How do I set up utilities?
Compile a list of required utilities, research providers, and schedule set-up with each provider before moving in.
How do local utility rate structures function?
Local utility rate structures determine payment methods and can vary from flat rates to time-of-use rates. Research these structures when setting up utilities.
What are energy efficiency ratings?
Energy efficiency ratings indicate a home’s or appliance’s energy usage effectiveness. Lower HERS scores signify better energy performance.