Utility costs vary more by state than most people realize — and they're not the same states that are expensive for housing. Rural Louisiana, Alabama, and parts of the Southeast have low housing costs but high electricity bills; Washington and Idaho have expensive housing but among the cheapest electricity in the country.
Electricity: the biggest range. Average residential rates in 2026 run from about 11¢/kWh in Washington, Idaho, and Louisiana to over 32¢/kWh in California and Hawaii. On a typical 900 kWh/month household, that's a $200/month difference for identical usage. Northeast states (Massachusetts, Connecticut, New York) all run 22¢+/kWh.
Natural gas: heating dominates winter bills. States with cold winters and high gas prices — New York, Massachusetts, Michigan — can run $200–$400/month in December through February. States with mild winters (Texas, California, Georgia) run $60–$120 even in cold months.
Water and sewer. Often overlooked but ranges from $40/month in cheap markets (parts of the Midwest and South) to $150+/month in expensive water markets (coastal California, parts of Arizona, some Southwest cities where water is scarce). Sewer fees have risen faster than water rates in most cities over the last decade.
Internet is more consistent but has regional traps. In dense metros with multiple carriers, you can get 500+ Mbps for $50–$70/month. In rural areas or single-provider markets, the same speed can be $90–$130 — or unavailable at any price. Check availability before a move; 'high-speed internet' on the listing doesn't always mean what you think.
Climate drives half of the total. A 2,500 sq ft house in Phoenix might spend $3,600/year on electricity for cooling; the same house in Portland spends closer to $1,200. Add winter heating and total annual utility spend swings by $2,500–$4,000 between climates.
Time-of-use pricing is now common. Many California, Arizona, and Northeast utilities charge 2–3× more for electricity used during peak hours (typically 4–9 PM). Shifting laundry, dishwasher, and EV charging to off-peak is worth $30–$100/month in these markets — but only if you actually do it.
Solar economics vary by state. High-electricity states with strong solar incentives (California, Massachusetts, Hawaii, New York) can pay back a residential system in 6–9 years. Cheap-electricity states (Louisiana, Washington, Idaho) have payback periods over 15 years — usually not worth it financially unless environmental values drive the decision.
Before you move, check: EIA state electricity rate tables, DOE natural gas price data, and the specific local utility's residential rate. A quick call to a friend or realtor in the destination for a 'what's your electric bill for a house this size' gut-check is worth more than any national average.
Deregulated markets add another layer. Texas, Pennsylvania, Ohio, and parts of a dozen other states let you pick your electricity supplier separately from the delivery utility. Switching to a better supplier can save 10–25% — but bait-and-switch teaser rates that reset after 6 months are common. Read the term-and-rate details.
Weatherization is the highest-ROI utility upgrade. A $150 tube of caulk, a $30 weather-stripping kit, and a $40 attic-hatch insulation cover applied over one weekend can cut heating and cooling costs 8–15% for years. The federal Weatherization Assistance Program covers this for free for lower-income households — check eligibility if it applies.
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