25% of New Homeowners Reduce Spending Immediately When They See This Surprisingly High Monthly Expense
Written by
Dawn Allcot
Edited by
Nicholas Morine
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If you’re shopping for a home, you may compare interest rates to find the best mortgage, consider property taxes in the area, and even haggle with the seller on the asking price.
But most people don’t ask about the cost of the monthly electric bill before they buy, according to a new survey from Payless Power. This could be a huge financial faux pas, experts suggest.
“While house hunters meticulously scrutinize kitchen finishes and backyard spaces, our data shows a surprising oversight: only 47% consider potential electricity costs,” said Payless Power CEO Brandon Young. “To avoid surprises, prospective homeowners should request past utility bills during the home-buying process.”
He went on to say: “Energy efficiency should be a top priority when purchasing a new home. Prospective buyers should look for features like energy-efficient windows, smart thermostats, and proper sun exposure. Our data indicates that such features can greatly influence energy costs, with newer homes and those with smart designs having significantly lower bills.”
The No. 1 Reason Your Electric Bill Is So High
While all the factors that Young listed can affect energy costs in your new home, there’s one element that many prospective homebuyers don’t consider — one which they should. “Home size actually has the biggest impact on electric bill costs,” Young said.
In fact, while the average homeowner paid $146 for each monthly electric bill last winter, that cost skyrockets to $268 for a house that exceeds 3,000 square feet. Average electric costs in various size homes across the U.S. are as follows, according to the Payless Power study:
- $112: <1,000 sq. ft.
- $152: 1,000 to 1,499 sq. ft.
- $205: 1,500 to 1,999 sq. ft.
- $210: 2,000 to 2,499 sq. ft.
- $221: 2,500 to 2,999 sq. ft.
- $268: >3,000 sq. ft.
Of course, these numbers vary depending on where you live and your personal habits to reduce energy consumption.
How To Handle a Surprisingly High Electric Bill
The Payless Power survey revealed that 25% of homeowners immediately reduce spending after the sticker shock of seeing their first electric bill in their new home.
“Our survey found that one-in-four individuals cut back on their overall spending after receiving a high power bill. This highlights a critical trend: Household energy management isn’t just about keeping the lights on — it’s a balancing act affecting the broader financial health of families,” Young said.
Buying a smaller home may not be practical if you have a large family. Fortunately, you can take other steps to reduce your energy consumption and costs immediately.
Young advised: “Simple habits like adjusting thermostat settings, utilizing off-peak energy hours, and sealing gaps around windows and doors can have a noticeable impact on monthly electricity costs. These practices are particularly relevant given the growing number of Americans searching for power bill relief.”
You might also see if you qualify for assistance through the Low Income Home Energy Assistance Program (LIHEAP), a locally administered program that provides help paying for electric, gas heat, and home heating oil. If you already receive SNAP, TANF, or SSI benefits, you likely automatically qualify for LIHEAP.
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