How to Estimate Utility Costs When Buying a House

When you’re shopping for a home, you’re likely focused on the list price and down payment. But don’t overlook utility bills. From electricity and water to internet and trash service, these monthly costs can add up fast, and vary a lot depending on the home.

Whether you’re eyeing a home in El Paso, TX or New Haven, CT, understanding what utilities might cost can help you budget smart from the start. This Redfin guide covers how to estimate utility costs, what factors influence them, and what the typical homeowner pays each month.

Key takeaways

• The average monthly cost for the six most common utilities is about $523.
• Get utility estimates early from your agent, the seller, or local providers..
• For the top 6 household utilities, the average cost is $523/month.
• Costs vary based on location, home size, usage habits, and climate..

Table of contents

• 3 ways to estimate utility costs
• Average utility cost by type
• Factors that influence utility costs
• FAQs

3 ways to estimate utility costs

If you’re looking to get a general idea of how much you’ll spend per month on utilities in your new home, there are three main ways to obtain this information:

1. Ask your real estate agent

Real estate agents can help estimate utility costs by reviewing historical data from the seller’s agent or annual utility costs of comparables. If you’re looking to estimate utility costs for a rental home or apartment, you can ask a landlord or apartment manager instead.

2. Ask the current resident

If possible, ask the current homeowner what they typically pay each month. You don’t need exact bills – even a ballpark range can be helpful.

3. Ask utility providers

You can reach out to local utility providers and ask for an estimate for the place you’re moving into. Most companies can give you an average monthly cost for your specific address based on the past year’s usage. 

Average utility cost by type

Here are the six utilities you should include when estimating your monthly costs, ranked from most to least expensive.

1. Electricity

The average electric bill in 2025 is $146/month according to SaveOnEnergy.

2. Gas

While this bill depends greatly on the season, the average gas bill in 2025 is around $90/month according to SoFi.

3. Sewer

This bill differs greatly by state, but the average national sewer bill in 2024 is $86/month according to Doxo.

4. Water

The national average for a family of four in 2024 is $73/month according to Lawn Starter.

5. Internet

According to Forbes, the average internet bill in 2025 is $65/month.

6. Trash

The average trash bill is $63/month according to Move.

Total average

Looking at only these six main utilities, a home’s average utility cost totals to $523/month.

Factors that influence utility costs

Utility costs vary greatly by home, state, size, etc. so it’s important to look at the variables that can affect these costs when estimating.

• Location: Utility costs vary greatly by state due to differences in energy sources, pricing regulations, and infrastructure.
• Climate: Climate plays a big role in specifically heating and cooling costs. For example, homeowners in colder climates may spend more on heat while those in hotter regions may have higher electricity bills from air conditioning usage. 
• Number of occupants: Larger households can see higher electricity, water, sewer, and sometimes internet bills due to increased usage. Households with young children or retirees can also see higher bills due to the increased time spent at home.
• Usage habits: Frequency and efficiency heavily influence utility costs, specifically the energy, water, gas, and sewer bills.
• Home size: The larger the home, typically the higher the utility bills. More square footage means more energy to heat, cool, and power.
• Home age: Older homes have the potential for outdated infrastructure like less efficient insulation or aging HVAC systems that will require more energy to operate. Some newer homes have updated systems and modern technology like double-pane windows or solar panels that can help reduce utility expenses.
• Inflation: Inflation affects every aspect of the economy, including rates charged by utility providers so you can expect costs to change as the economy does.

FAQs

How can I decrease utility costs?

This depends on which utility you’re trying to save on, but we have a guide here.

How do seasons affect utility costs?

Seasons especially affect gas and electricity bills due to increased heating needs in the winter and cooling needs in the summer.

How do I set up utilities?

First compile a list of all the utilities you need, research providers for each, and schedule set-up with each provider prior to your move-in.

How do local utility rate structures work?

Local utility rate structures determine how to pay for utilities and can be flat rate, tiered (block) rates, time-of-use (TOU) rates, or real-time, so be sure to do your research when setting up your utility providers.

What are energy efficiency ratings?

Energy efficiency ratings indicate how effective a home (or appliance) is at using energy which can help when comparing options and reducing utility costs. The HERS (Home Energy Rating System) Index is the industry standing for home energy efficiency measurement where lower scores mean better energy performance.

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