How Rising Utility Costs Impact Kentucky Households

Kentucky Utility Bills Are Adding Up

If it feels like your utility bill is taking a bigger bite out of your paycheck lately, you’re not wrong — especially if you live in Kentucky.

According to a new report, Kentucky ranks 17th in the country for the most expensive utility costs, with the average household spending about $522 per month When you stack that up against Kentucky’s median monthly income of roughly $5,399, it means nearly 10% of income is going straight to utilities.

Nearly 10% of Income Goes to Utilities

Researchers calculated this ranking by comparing the average monthly utility cost with median monthly income. The result? About 9.67% of a typical Kentuckian’s income goes toward keeping the lights on, the water running, and the house heated or cooled.

And depending on which state you live in, utility bills can take up as much as 14% of a household’s monthly income, making utilities one of the most significant ongoing expenses for many Americans.

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Utility Costs Are Rising Nationwide

It’s not just a Kentucky issue. Across the U.S., the average monthly utility cost has increased by 4.8% compared to last year. That rise comes at a time when many households are already stretched thin.

Food costs now average about $370 per person, and only 6% of Americans are able to put money into savings each month. For a lot of families, that leaves very little wiggle room when bills go up.

These States Are the Most Budget-Friendly

The report also highlights states where residents tend to get more breathing room financially. **North Dakota, Arkansas, Tennessee, Michigan, and Iowa** ranked as the most budget-friendly states when it comes to overall cost of living, including utility expenses.

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How the Data Was Calculated

To put the report together, researchers analyzed total utility costs in each state and compared them to the percentage of household income spent on utilities. Annual median household income by state was pulled from the Federal Reserve and divided by 12 to determine monthly income.

The Bottom Line

Utility bills are climbing, and they’re taking up a larger share of household budgets than ever before. If you’ve looked at your latest bill and thought, *“That seems higher than it should be,”* you’re definitely not alone.