When it comes to the cost of living in luxury real estate destinations, one expense that’s often overlooked is the cost of monthly utilities. Whether you’re talking about a vacation home or primary residence, heating and cooling a sprawling mountainside or oceanside home – not to mention heating the pool, hot tub, and sauna, powering the outdoor lighting, and keeping the internet, TVs, and sound systems humming – can significantly affect your energy costs.
If you’re looking to keep your utility bills low, a recent study found there’s one surprising place that makes that an easier task: Utah. That’s right – according to research by Forbes Home, the state of Utah has the lowest average utility costs in the entire country.
First, we’ll break down the numbers and then see how the Beehive State compares to other highly sought-after areas.
Average Utilities Cost Per Month in Utah
While these numbers may seem too low to be true, these are averages for the state. It’s important to consider home size and energy needs when comparing state and national averages to individual utility bills.
- Electricity: $80.87
- Water: $38
- Internet: $30
- Natural Gas: $35
- Phone: $114
- Streaming: $47.75
- Total: $345.62
That puts the total average utility bill for a Utah household at $345.62 per month. To put that in context, the national average across all states is $429.33 – $83 more per month than Utah residents pay.
Utah’s low utility costs are largely driven by a few factors: inexpensive electricity and water rates, moderate natural gas rates, and low heating/cooling needs thanks to our dry, temperate climate. Utah is also home to an abundance of renewable energy resources like wind, solar, and hydroelectric which help keep utility bills down.
Regulating the Average Gas Bill Per Month in Utah
As mentioned above, the average monthly gas bill for Utah homeowners is $35. Dominion Energy supplies natural gas to 90% of Utah households. Since Dominion is a private company that operates with next to zero competition, the state’s Public Service Commission regulates gas rates – which are tied to both up and down adjustments in the wholesale price Dominion pays for gas.
Keeping Utah’s Average Electric Bill Low
Rocky Mountain Power, which operates in Utah, Idaho, and Wyoming, is the only “rate regulated public utility providing electric service in Utah” and supplies 80% of households in the state with electricity. As an integrated electric utility, the company’s rates are also regulated by the Utah Public Service Commission.
Average Monthly Electric Bill with Solar Panels
One other key factor allowing some Utah homeowners to keep utilities exceptionally low? Embracing solar power. The state has ideal conditions for solar with plenty of sunshine and open spaces for installations. For Utah homeowners who generate 100% of the electricity needed via solar, their average monthly electric bill is $0.
(If you’re wondering if solar power is a good investment for your Park City home, we broke down the costs and benefits in this post.)
Cost of Living in Utah
While we’re on the subject of utility costs in Utah, it’s worth noting that the state boasts a very reasonable overall cost of living as well. Housing costs, groceries, transportation, and healthcare all tend to be below the national average prices. We’ll dive deeper into the affordability of living in Utah soon, so stay tuned.
Utah vs California & Other Luxury Real Estate Destinations
To provide a frame of reference to Utah’s low utility bills, let’s compare Park City utility costs to other popular high-end areas.
Park City Utilities: 7% Below National Average
With its world-class skiing, luxury homes, spectacular views, high-end shopping, and fantastic dining, Park City is Utah’s greatest gem – and priciest locale for utilities. But even here, the average utility costs are well below the norm at 7% below the national average. (See our list of local utility companies.)
Los Angeles, CA, Average Utility Bill
Sun-drenched SoCal sounds dreamy – until you get the utility bill for cooling all that square footage and keeping the pool heated. Another recent study found Los Angeles homes pay the 3rd highest average utility bills in the country.
Jackson Hole, WY, High Average Electric Bill
The brutal Jackson Hole winters combined with expensive electricity make for utility bills that are nearly double what you’d pay in Utah.
Palm Beach, FL, High Cooling Costs
While heating costs aren’t often an issue in balmy Florida, the relentless need for air conditioning results in utility costs that far exceed Utah. Palm Beach luxury homeowners pay nearly $200 more per month just in cooling costs.
The Overlooked Value of Park City Luxury Real Estate
For those looking to build or buy their dream home somewhere beautiful, sunny, and dry, Utah is an extremely enticing choice. And while utility expenses are just one piece of the puzzle when evaluating a Park City vacation home or primary residence, it’s something to keep in mind when considering your options.
In an upcoming post, we’ll take a holistic look at the cost of living in Utah compared to other popular areas. We’ll examine housing prices, taxes, transportation costs, and more to shed light on Utah’s spot as one of the best luxury living values in the country.