Written by Saltanat Berdikeeva | Edited by Hannah Hillson
Key points
- 87% of U.S. homeowners have noticed an increase in household expenses over the summer.
- 89% of homeowners worry about being able to meet their monthly household expenses.
- 69% of homeowners have noticed higher electricity prices than they’re accustomed to during the summer.
- To cut costs, 78% of homeowners turn off lights when not using them, and 58% use energy-efficient light bulbs.
As the U.S. inflation rate in September reached8.2% year over year, American homeowners continue to feel the impact of rising prices on their monthly household expenses. In a new SaveOnEnergy.com® survey of 1,421 adult homeowners, 87% have noticed an increase in household expenses over the past summer. 90% of those who own a home are concerned about the impact of inflation on their monthly household expenses.
The highest household expense among survey respondents over the past summer was electricity (69%), followed by water use (44%), utility gas service (43%), cable services/TV subscriptions (34%), and internet prices (30%).
Household expense categories where homeowners noticed higher prices between June 2022 and August 2022
Low-income households are most concerned about higher monthly household expenses
An overwhelming majority (90%) of American households are concerned about their ability to meet their monthly household expenses, including:
- 95% of those earning under $40,000
- 92% of those earning $40,000-$79,999
- 82% of those earning $80,000 and higher
70% of homeowners earning under $40,000 are more likely to be very concerned about inflation’s impact on their monthly budget than those making between $40,000-$79,999 and over $80,000 (50% and 43%, respectively).
- Those earning under $40,000 and between $40,000-$79,999 were more likely to notice an increase in water bill costs compared to those making more than $80,000 (46%, 47%, and 40%, respectively).
- Those earning less than $40,000 were more likely to notice an increase in internet prices than those making $80,000 and higher (35% and 27%, respectively).
- They were almost three times more likely to cut on one or more essential expenses to meet their monthly household budget than those earning $80,000 and higher (47% and 16%, respectively).
- They were nearly twice as likely to cut down on one or more non-essential expenses to meet their monthly household budget than those earning $80,000 and higher (60% and 33%, respectively).
- They were more likely to dip into savings to pay for their monthly household expenses than those making $80,000 and higher (49% and 28%, respectively).
There were generational differences in regards to how concerned homeowners were about their ability to pay their household bills. An overwhelming majority (91%) of millennial homeowners (ages 26-41) and Gen X homeowners (ages 42-57) expressed concern about their ability to meet their monthly household expenses compared to 88% of boomer homeowners. (88%).
Measures taken since past year to reduce home energy costs as we head into winter
The U.S.Energy Information Administration expects a sustained increase in electricity rates into 2023. However, homeowners are finding ways to cut back on energy costs. 91% of homeowners have taken measures to lower their energy costs in preparation for winter, while 9% reported they hadn’t taken any action.
Measures to lower energy costs included:
- Turning off lights when not using them (78% of respondents)
- Using energy-efficient light bulbs (58%)
- Unplugging electronics when not in use (33%)
- Utilizing energy-efficient appliances (35%)
- Using a smart or programmable thermostat (26%)
- Checking for air leaks and sealing windows and/or doors (32%)
The energy cost-cutting measures differed between income levels.
- Homeowners making between $40,000 and $79,999 were more likely to use smart plugs/outlets than those earning under $40,000 (15% and 9%, respectively).
- Those earning under $40,000 were less likely to use smart or programmable thermostats compared to those making $80,000 and higher (17% and 31%, respectively).
- But they were more likely to check for air leaks and seal windows and/or doors than those earning $80,000 and higher (39% and 27%, respectively).
- Those earning $80,000 and higher were more likely to use energy-efficient appliances than those making between $40,000-$79,999 and under $40,000 (39%, 31%, and 33%, respectively).
- Households earning $80,000 and higher were more likely to use solar panels than those making between $40,000-$79,999 and under $40,000 (9%, 5%, and 4%, respectively).
There were generational distinctions in using various cost-cutting measures.
- Boomer homeowners were more likely to switch to using energy-efficient light bulbs than Gen X and millennial homeowners (66%, 56%, and 45%, respectively).
- Boomer homeowners were more likely to switch to using energy-efficient appliances than Gen X and millennial homeowners (38%, 31%, and 30%, respectively).
- Millennial homeowners were more likely to switch energy plans to reduce costs than boomer and Gen X homeowners (12%, 7%, and 6%, respectively).
Energy cost-saving measures that homeowners thought had the biggest impact on savings
The impact of energy cost-saving measures differed between income levels.
- Homeowners earning below $40,000 were more likely to notice an impact on costs when turning off unused lights than those making $80,000 and higher (38% and 26%, respectively)
- 15% of those earning below $40,000 were more likely to notice an impact when unplugging unused electronics than those making $80,000 and higher.
- Homeowners earning under $40,000 were more likely to notice an impact when checking for air leaks and sealing windows and/or doors than those making between $40,000-$79,999 (22% and 16%, respectively).
- At the same time, homeowners earning $80,000 and higher were more likely to use energy-efficient appliances than those making under $40,000 and those earning between $40,000-$79,999 (22%, 15%, and 14%, respectively).
- Homeowners earning $80,000 and higher were more likely to notice an impact from using solar panels than those making between $40,000-$79,999 and those making under $40,000 (7%, 4%, and 3%, respectively).
There are some generational differences in using cost-saving measures with the biggest impact.
- 4% of millennial homeowners were more likely to notice an impact from using smart plugs/outlets than 1% of boomer and Generation X homeowners.
- 19% of boomer homeowners were more likely to use energy-efficient appliances than 13% of Gen X and 15% of millennials.
A third (30%) of homeowners said they had to give up on an essential expense to meet their monthly household costs
When asked about actions they have taken to meet their monthly household expenses, a third (30%) of homeowners agreed they had to cut out one or more essential expenses. Just under half (45%) of homeowners said they had to cut out one more non-essential expense. Nearly 2 in 5 (38%) said they had to dip into savings.
However, homeowners with a household income under $40,000 were hit the hardest. They were three times more likely to agree they had to cut an essential expense than those with a household income of $80,000 and above (47% vs. 16%). While a third (32%) of homeowners making between $40,000 and $79,999 agreed to the same.
Homeowners in lower-income households were also twice as likely as those in the highest-income households to agree that they had to both make cuts to a non-essential expense (60% vs. 33% respectively) and dip into savings to meet their monthly household costs (49% vs. 28% respectively). Nearly half of homeowners making between $40,000 and $79,999 agreed to have also needed to make cuts (48%), while 42% reported having to dip into their savings.
There were generational differences in responding to the question on cutting one or more essential expenses to meet monthly household budgets. Of surveyed homeowners, 43% of Millennials, 28% of Gen X, and 26% of boomers agreed they had to cut out one or more essential expenses to meet their monthly household budget. 32% of Millennials, 50% of Gen X, and 59% of boomers disagreed with this statement.
