PHOENIX — According to a recent report from the bill pay company Doxo, households in Phoenix incur an average monthly bill of $2,395. This represents a significant increase of 13% compared to the national average household expenses.

The annualized costs for Phoenix families amount to approximately $28,742.

Why Are Utility Bills in Phoenix So High?

Utility costs in Phoenix are notably higher than the national averages, alongside elevated expenses in auto loans and auto insurance. However, for the other tracked categories, expenses are similar to or less than the national figures.

The average costs by category in Phoenix are as follows:

• Utility bills: $451 (national average: $362)
• Mortgage: $1,408 (national average: $1,402)
• Rent: $1,311 (national average: $1,300)
• Auto loans: $566 (national average: $496)
• Auto insurance: $285 (national average: $209)
• Health insurance: $93 (national average: $144)
• Mobile: $108 (national average: $121)
• Cable and internet: $122 (national average: $122)
• Life insurance: $78 (national average: $87)
• Alarm and security: $75 (national average: $85)

Jim Rounds, a local economist, suggested that the intense summer heat plays a significant role in driving up utility costs. Rounds stated, ‘A lot of it has to do with the hot summer. Your bills throughout the year are significantly higher during July and August, while winter brings lower costs.’

Phoenix has also experienced unseasonably warm temperatures recently. In fact, the city recorded high temperatures for four consecutive days earlier this month.

How Do Phoenix Household Bills Compare to Other Cities?

The Doxo research highlights that Phoenix households spend an additional $3,229 per year relative to the average American family. Despite these high costs, Phoenix is ranked 12th amongst the most expensive cities in Arizona for household bills; Paradise Valley tops this list, followed by Scottsdale, Cave Creek, and Litchfield Park.

Despite the current expense levels, Rounds remains optimistic about the state’s economic outlook, saying, ‘I’m still pretty bullish on our economy. Arizona, as a whole, is in much better shape than other states.’