doxo, the innovative web and mobile bill pay service, today released a new report that compares household bill pay behavior across the 50 largest cities in the nation (based on number of households). The 50 Largest U.S. Cities Household Spend Report 2022, which reflects actual bill payment activity across more than 97% U.S. zip codes, reveals the most and least expensive big cities for Americans to live based on average spend per month on actual household bill payments.
While the average U.S. household spends $24,032 annually on bills, 36% of the U.S. household median income ($67,521) and roughly $2,003 per month (up 6% year over year, in line with the increase in total consumer spending as reported by the U.S. Bureau of Economic Analysis for the same period), plenty of cities rank well above or below this figure. San Jose, New York, San Francisco, Boston and San Diego top the list as the most expensive, while Memphis, Albuquerque, El Paso, Cleveland, and Detroit are the most affordable.
Given recent strains on household budgets due to nationwide inflation, this insight into how much of a household income is required to cover bills in each city helps arm consumers with the knowledge they need to budget accordingly With a 6% year over year increase in the amount paid on household bills, a recent doxoINSIGHTS study found that 9 out of 10 Americans (89%) have seen a jump in their household bills over the past 12 months with utilities rising the most. The study also found that 87% of Americans worry about their ability to pay their bills if inflation rates continue to rise.
“Consumers are indeed feeling the strain as they deal with the consequence of months of inflation impacting nearly every category of household spending,” said Jim Kreyenhagen, VP of Marketing and Consumer Services at doxo. “Through doxoINSIGHTS, we are able to provide consumers, businesses, and financial institutions with access to the broadest and most transparent data available on actual household spending for the most common bills. Uncovering household bill spend on a metro-specific level in addition to doxo’s bill pay application provides consumers with the information and tools they need to improve their financial health. Additionally, this data allows the service providers and financial institutions that serve them to better align with their needs, which is more crucial now than ever.”
The findings outlined in the 50 Largest U.S. Cities Household Spend Report 2022 include the total monthly spend for bills each month, as well as a breakout of each of the ten most common household bills, including: Mortgage; Rent; Auto Loan; Utilities (electric, gas, water & sewer, and waste & recycling); Auto Insurance; Cable, Internet & Phone; Health Insurance (consumer paid portion); Mobile Phone; Alarm & Security; and Life Insurance. The 10 most expensive and least expensive cities among the top 50 biggest U.S. cities are outlined below.
From this list of the 50 largest cities in the U.S., doxo’s report reveals the most and least expensive places for Americans to live based on average spend per month on actual household bill payments. Residents of San Jose pay the highest monthly bills out of these 50 cities, at an average of $3,248 in monthly expenses, or 62.2% higher than the national average of $2,003. California is well represented among the most expensive metro areas ranked, with San Francisco, San Diego, and Los Angeles also on the list. New York, Boston, Washington DC, Seattle, Miami, and Austin also made the list of the top ten most expensive cities.
Findings also show that cities in the Midwest are some of the least expensive in doxo’s Top 50 rankings. Detroit residents pay the least in average monthly expenses, at $1,634, which is 18.4% lower than the national average. Other Midwest-based cities make up the majority of the least expensive cities with Cincinnati, Cleveland, Kansas City (MO), and Dayton all making the list.
To view more from doxoINSIGHTS and its 50 Largest U.S. Cities Household Spend Report 2022, includinga full breakdown of the amount paid in household bills across all of the 50 states, as well as previous doxo reports, visit the doxoINSIGHTS website.