Since the economic downturn that followed the COVID-19 pandemic, costs have risen for many commodities; some of the most severe increases have been for energy, whose prices have skyrocketed since 2020. A new report by Self Financial shows that June’s energy prices were up 41.5% from the same time last year. New Jerseyans, however, spend the 10th-smallest share of their income on energy bills, according to the report. 

The average American household spends $245 on utilities per month. But with cold winters and hot summers, households in the Northeast, including New Jersey, end up spending more. New Jersey consumers spent a median $293 per month on utilities, so it may be surprising that New Jersey was one of the states whose residents spent the least of their income on utility bills. States in the South, particularly West Virginia and Mississippi, spent the largest share of household income on utilities. 

Much of the surge in energy bills can be attributed to natural gas prices increasing after the supply from Russia was cut. Half of American homes use natural gas, the second-largest spending category after electricity. Sewer, water and other fuels also account for monthly spending on utilities.