With AI energy demands, data centers coming online, tariffs and shifts toward renewable energy creating uncertainty in the utilities industry, new reports released by bill-paying company doxo revealed that Americans spend $532 billion annually on their utility bills, or 5% of annual household income.
New Jersey, slammed with escalating electricity costs beginning in June, had the eighth-highest utility bills in the nation. The 2025 U.S. Utilities Market Size and Household Spending Report found that U.S. households with utility bills spend a median of $347 per month, or $4,168 per year. New Jersey utility customers spend $435 a month, or $5,220 a year.
“American families are navigating a perfect storm of rising utility costs,” said Steve Shivers, co-founder and CEO of doxo. “Sweeping infrastructure transformation and increasing energy demand are converging, resulting in more costs being passed to households.”
A statistical analysis of actual household payments was made for four main utilities categories — electric, gas, waste and recycle, and water and sewer — across 97% of U.S. ZIP codes. The reports break out the household spending market size; percentage of households that pay each bill; and median monthly and annual bill pay costs by state, as well as the 50 largest U.S. cities (based on the number of households), and those cities with 40,000 or more residents.
The median monthly/annual electricity bill payment in New Jersey is $124 per month; $1,448 a year. The median monthly/annual electricity bill payment in the U.S. is $120 per month; $1,440 per year The median monthly/annual bill payment for water and sewer in New Jersey is $100 per month; $1,200 a year. The median monthly/annual bill payment for water and sewer in the U.S. is $86 per month; $1,036 a year.
The median monthly/annual gas bill payment in New Jersey is $100 per month; $1,200 a year. The median monthly/annual gas bill payment in the U.S. is $71 per month; $852 a year. The median monthly/annual waste and recycle bill payment in New Jersey is $111 per month; $1,322 a year. The median monthly/annual waste and recycle bill payment in the U.S. is $70 per month; $840 a year.
Over the past five years, U.S. household utility costs have risen roughly 15%, driven largely by volatile energy markets. Gas utilities saw the steepest climb — up 25% — following pandemic-era supply shortages and the global fuel disruptions of 2022–2023, before easing in 2024.
Electricity prices increased nearly 20% overall, with a 7% rise in 2025 tied to higher demand from AI data centers and grid investments. Meanwhile, water and sewer, and waste and recycling services rose more steadily in line with inflation and infrastructure costs.
