As the height of winter approaches in the United States and temperatures continue to drop across the country, many Americans are turning their focus to the high prices of household utilities—namely household heating fuels. On average, nearly half of residential energy consumption in the U.S. is attributable to space heating, and 85% of U.S. adults report that their utility costs have increased in recent years. While heating prices have come down in recent months compared to their peak last year, Americans are still projected to spend nearly 30% more on utilities this winter than before the pandemic.
Residential Winter Heating Fuel Prices Over Time
Recent inflation has impacted all major residential heating fuels. Image Credit: Upgraded Points
Despite the projected dip in utility prices this winter, the overall burden on American wallets remains significant. While winter electricity prices had been on a steady rise since the early 2000s, they distinctly shot up during the pandemic—rising 18% from winter 2019–2020 to winter 2022–2023. And with natural gas—the most common winter heating fuel source in the U.S.—price inflation was even more dramatic. After remaining low since 2010 thanks to new extraction technologies, natural gas prices have risen nearly 27% since the winter of 2019–2020. Winter propane and heating oil prices also followed the trend—rising 23% and 39% during the same time period, respectively.
Geographical Differences in Primary Household Heating Fuels
While over 87% of households primarily use natural gas or electricity to heat their homes, northern states often rely on propane or heating oil. Image Credit: Upgraded Points
In the United States, the use of different heating fuels varies significantly based on location. Nationally, natural gas is the predominant heating fuel, used as the primary source in over 60 million homes (46% of the total). Compared to other heating fuels, natural gas has the least geographic variation, with at least a quarter of households relying on it as their primary heating source in all but seven states.
Electricity ranks as the second most common fuel for residential heating, serving as the primary source for approximately 54 million homes, mainly concentrated in the South and Pacific Northwest where heating demands are lower. For instance, in Florida, over 90% of homes primarily use electricity for heating, while in northern states, this number typically falls below 20%. Conversely, propane and heating oil are more prevalent in regions with high heating demands, but where rural customers lack access to utility gas lines, as is the case in parts of the Midwest and Northeast.
Differences in fuels, prices, and climate create large regional variation in household utility expenditures, especially during the winter months. According to forecasts from the U.S. Energy Information Administration, residents of New Hampshire and Maine—who primarily rely on heating oil to heat their homes—are projected to spend 45.4% and 44.4% more on monthly household utility costs this winter than they did during the winter of 2019–2020. Similarly, some areas in the South, like Louisiana (+37.8%) and Florida (+36.6%) are expected to receive significantly higher utility bills this winter. Conversely, the remote states of Alaska (-11.2%) and Hawaii (-6.5%) already have relatively high utility costs during the winter months, and are actually forecasted to experience smaller average monthly utility bills this year.
Below is a complete breakdown of all 50 states. The research was conducted by Upgraded Points using the latest data from the U.S. Energy Information Administration. For more details on how the analysis was conducted, refer to the methodology below.
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15. Nebraska
- Change in monthly winter household utility costs: +27.8%
- Average monthly winter household utility costs (2023–2024, projected): $244
- Average monthly winter household utility costs (2019–2020): $191
- Primary household heating fuel source: Natural gas
Photo Credit: Sean Pavone / Shutterstock
14. Indiana
- Change in monthly winter household utility costs: +28.4%
- Average monthly winter household utility costs (2023–2024, projected): $272
- Average monthly winter household utility costs (2019–2020): $212
- Primary household heating fuel source: Natural gas
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13. Colorado
- Change in monthly winter household utility costs: +29.0%
- Average monthly winter household utility costs (2023–2024, projected): $204
- Average monthly winter household utility costs (2019–2020): $158
- Primary household heating fuel source: Natural gas
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12. New York
- Change in monthly winter household utility costs: +29.8%
- Average monthly winter household utility costs (2023–2024, projected): $356
- Average monthly winter household utility costs (2019–2020): $274
- Primary household heating fuel source: Natural gas
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11. Connecticut
- Change in monthly winter household utility costs: +29.8%
- Average monthly winter household utility costs (2023–2024, projected): $506
- Average monthly winter household utility costs (2019–2020): $389
- Primary household heating fuel source: Heating oil
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10. Texas
- Change in monthly winter household utility costs: +30.6%
- Average monthly winter household utility costs (2023–2024, projected): $220
- Average monthly winter household utility costs (2019–2020): $168
- Primary household heating fuel source: Electricity
Photo Credit: CO Leong / Shutterstock
9. Massachusetts
- Change in monthly winter household utility costs: +31.0%
- Average monthly winter household utility costs (2023–2024, projected): $443
- Average monthly winter household utility costs (2019–2020): $338
- Primary household heating fuel source: Natural gas
Photo Credit: Sean Pavone / Shutterstock
8. Kansas
- Change in monthly winter household utility costs: +31.4%
- Average monthly winter household utility costs (2023–2024, projected): $267
- Average monthly winter household utility costs (2019–2020): $203
- Primary household heating fuel source: Natural gas
Photo Credit: Kit Leong / Shutterstock
7. Oklahoma
- Change in monthly winter household utility costs: +32.2%
- Average monthly winter household utility costs (2023–2024, projected): $246
- Average monthly winter household utility costs (2019–2020): $186
- Primary household heating fuel source: Natural gas
Photo Credit: Henryk Sadura / Shutterstock
6. Illinois
- Change in monthly winter household utility costs: +32.4%
- Average monthly winter household utility costs (2023–2024, projected): $259
- Average monthly winter household utility costs (2019–2020): $195
- Primary household heating fuel source: Natural gas
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5. Pennsylvania
- Change in monthly winter household utility costs: +32.5%
- Average monthly winter household utility costs (2023–2024, projected): $364
- Average monthly winter household utility costs (2019–2020): $274
- Primary household heating fuel source: Natural gas
Photo Credit: Sean Pavone / Shutterstock
4. Florida
- Change in monthly winter household utility costs: +36.6%
- Average monthly winter household utility costs (2023–2024, projected): $188
- Average monthly winter household utility costs (2019–2020): $137
- Primary household heating fuel source: Electricity
Photo Credit: Sean Pavone / Shutterstock
3. Louisiana
- Change in monthly winter household utility costs: +37.8%
- Average monthly winter household utility costs (2023–2024, projected): $211
- Average monthly winter household utility costs (2019–2020): $153
- Primary household heating fuel source: Electricity
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2. Maine
- Change in monthly winter household utility costs: +44.4%
- Average monthly winter household utility costs (2023–2024, projected): $509
- Average monthly winter household utility costs (2019–2020): $353
- Primary household heating fuel source: Heating oil
Photo Credit: Sean Pavone / Shutterstock
1. New Hampshire
- Change in monthly winter household utility costs: +45.4%
- Average monthly winter household utility costs (2023–2024, projected): $553
- Average monthly winter household utility costs (2019–2020): $380
- Primary household heating fuel source: Heating oil
Methodology
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To find the locations most impacted by rising heating costs this winter, researchers at Upgraded Points analyzed the latest data from the U.S. Energy Information Administration’s (EIA) Short-Term Energy Outlook, Natural Gas data, Electricity data, Propane data, and Petroleum & Other Liquids data. The researchers ranked states according to the change in monthly winter household utility costs from winter 2019–2020 to winter 2023–2024. For the purposes of this analysis, winter was considered to be December through February and the four most common heating fuel utilities (natural gas, electricity, propane, and heating oil) were considered in utility cost calculations. Household utility costs were calculated using regional energy data and consumption patterns, as well as the EIA’s Short-Term Energy Outlook projections.
For complete results, see States Most Impacted by Rising Heating Costs This Winter on Upgraded Points.
