Want lower energy bills? Consider buying a house in these states

Aly J. Yale
The Mortgage Reports contributor

A bargain in D.C.

Tired of paying sky-high energy bills this summer? Then buying a house in Washington, D.C. might be your best move. According to a new ranking, the district boasts the lowest monthly energy bills in the nation.

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States with savings

According to a new ranking from WalletHub, residents in D.C. pay just $204 per month in energy costs — and that includes their electricity, natural gas, motor fuel and home heating expenses.

Colorado came in second, with residents averaging around $251 per month in energy bills, while Washington took third, boasting a monthly average of just $265.

Other states with low monthly energy costs were Louisiana ($271), Arkansas ($275), Hawaii ($279), Illinois ($281), Tennessee ($283), New York ($284), Iowa ($286) and Florida ($287).

Average electricity prices are lowest in Washington, while Montana has the lowest natural gas prices. Hawaii claims the lowest electricity consumption per resident.

Improve your property with an energy efficient mortgage

The highest energy costs

On the pricier side, Connecticut comes in with the nation’s highest total energy costs. Residents pay an average of $373 per month.

Wyoming, Alaska, Georgia and Massachusetts also rank on the high end of energy bills. Wyoming’s residents pay the most in motor fuel, shelling out more than $200 per month on the expense.

Hawaii residents face the highest electricity and natural gas prices in the nation, while California sees the priciest motor fuel.

Buying a home: Utility costs matter (a lot!)

According to WalletHub’s Adam McCann, choosing your location wisely can help homebuyers save big on energy costs.

“In the U.S., energy costs eat between 5 and 22 percent of families’ total after-tax income, with the poorest Americans, or 25 million households, paying the highest of that range,” he said. “And lower energy prices don’t necessarily equate to savings. Where we live and how much energy we use are a big part of the equation.”

Verify your new rate (May 30th, 2020)

Get today’s mortgage rates

Are you considering buying a house in one of these more affordable states? Then shop around and see what mortgage rates you qualify for today.

Verify your new rate (May 30th, 2020)