For people planning to relocate, utilities such as electricity, water, heating, internet are a major recurring expense. Therefore, you must know where in the United States they are most affordable. It will significantly help you in deciding the budgets and choosing the right place to live. Many retirees live on fixed incomes, so finding states with low utility bills can significantly stretch their money. Imagine paying just around $500 a month for all your utility bills, and still having money left over for savings or investments. Keep reading to uncover the full cost-saving list.
List of Top 7 U.S. States with the Lowest Utility Costs
Getting to know the states in the U.S. with the lowest cost of living and utility expenses can help you in determining housing options, and relocation easily. Therefore, we have listed the states in the table below based on official stats from This Old House (citing U.S. EIA) and Axios, showing the average monthly utility cost, implied affordability according to each state:
Rank | State | Avg. Utility Bill (USD/mo) |
1 | Idaho | $495 |
2 | Utah | $502 |
3 | Iowa | $507 |
4 | West Virginia | $508 |
5 | New Mexico | $517 |
6 | Nebraska | ~$1.35/kWh (among lowest) |
7 | North Dakota | ~$0.087/kWh (lowest) |
FAQ
Utility costs generally include electricity, natural gas, water, internet, and sometimes trash removal.
Not necessarily. While utilities are a significant expense, housing, transportation, and groceries also play a big role in overall cost of living.
A: Yes. Using energy-efficient appliances, solar panels, smart thermostats, and water-saving fixtures can lower costs further.
Many cost-of-living studies include basic broadband internet in the total monthly utility calculation, but some rank it separately.
