New data released by American Home Shield (AHS) reveals a growing financial strain on U.S. households, with 33% of consumers reporting significant difficulty paying their utility bills in 2026. Despite widespread efforts to cut back on energy consumption, 88% of Americans say their costs have increased over the past year.
The study, which surveyed 1,003 consumers in December 2025, found that 22% of respondents missed at least one utility payment in 2025. Among those who fell behind, half reported missing multiple payments. While the number of people who feel “overwhelmed” by these costs dropped slightly from 54% last year to 49% this year, the financial pressure remains a primary stressor for nearly half the population.
Electricity continues to be the most expensive utility for 70% of households, with the average monthly bill now sitting at $187.
Consumer frustration with electric providers is also on the rise; 61% of respondents believe their rates are unreasonable, a 6% increase from the previous year.
A significant factor in these rising costs appears to be the presence of data centers. Residents living near these facilities, particularly those housing AI infrastructure, reported average electric bills $68 higher than the rest of the country.
These individuals also saw a 15% year-over-year increase in their rates, compared to the national average increase of 11%.
The survey also highlighted a growing disconnect between consumers and the energy market. Approximately 58% of respondents said they do not understand why their rates are rising, and 57% expressed concern over the long-term sustainability of these price hikes.
“Electricity costs add up fastest from things homeowners don’t even notice,” said Roy Neely, an AHS expert. “Simple steps like sealing air leaks, adding motion light switches, upgrading to LED lighting, or investing in a smart thermostat can all help lower electric bills.”
To cope with the expenses, Americans are adopting various conservation tactics:
- 62% are using fewer lights.
- 50% are keeping their homes at lower temperatures.
- 49% have switched to LED bulbs.
- 42% are unplugging unused appliances.
However, interest in long-term solutions like solar energy has plummeted. Only 6% of homeowners plan to install solar panels in 2026, down from 16% last year. This decline coincides with the expiration of tax credits previously available under the Inflation Reduction Act.
For many, the “utility squeeze” is forcing difficult lifestyle changes. The data shows 36% of Americans are cutting back on leisure activities, 26% are seeking second jobs, and 19% are reducing their grocery budgets specifically to cover their utility costs.
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