Americans’ water bills are growing faster than groceries, overall inflation

Household water bills are increasing faster than inflation and income, according to a new analysis.

The environmental advocacy nonprofit Food and Water Watch analyzed water bill data among the nation’s 500 largest community water providers. Those systems serve a collective 155 million people — nearly half the nation’s population.

Between 2015 and 2025, water bills increased by 62% on average across those water providers. That was faster than the overall inflation rate and more than two times the rate of grocery price increases over the same period. Food and Water Watch found that water bills increased 19% faster than household incomes, meaning people are spending a greater share of their earnings on water.

In Louisiana, Maryland, New Hampshire and West Virginia, water bills grew about twice as fast as household incomes, the analysis found.

Costs varied widely across the country: In Idaho, the average household spent $286 on water bills last year. In West Virginia, the average cost was $1,383. The analysis found for-profit water companies charge more than publicly owned water providers (Food and Water Watch advocates against private ownership of water systems).

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The analysis projects that costs will rise further as climate-change driven drought and natural disasters threaten water supplies. It also pointed to growing infrastructure needs that are estimated to cost hundreds of billions of dollars across the country.

“Industrial pollution, aging infrastructure, and federal disinvestment are fueling a crisis for the nation’s water systems,” the report said.

The American Water Works Association, which includes more than 4,300 North American water utilities, estimates American drinking water systems will need as much as $2.4 trillion over the next 25 years to sustain and modernize infrastructure. If those costs are covered solely by users, bills could more than double by 2050, the association projected.

Aside from abandoning water system privatization, Food and Water Watch recommends that state and local governments support local control of water systems, hold polluters accountable for contamination and prevent the tech, fossil fuel and agriculture sectors from passing on costs to residential water users. The organization also calls on Congress to fund water improvement projects that can help communities meet federal water standards.

The report comes as more Americans struggle with the high costs of electricity, gas, groceries and housing.

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Electric bills continued to soar and millions of families that heat their homes with oil are facing a much more expensive winter. The National Energy Assistance Directors Association, which represents state employees administering federal energy assistance programs, estimates that heating oil costs will be about 50% higher than last winter.

Though federal forecasters predict a warmer winter, wars in Iran and Ukraine have greatly disrupted petroleum markets, leading to quick price hikes.

Households in the Northeast, which use more than 80% of the nation’s heating oil, will be most affected. But the association projects American home heating costs will rise an average of 8.7% this winter — more than twice the rate of inflation.

Stateline reporter Kevin Hardy can be reached at khardy@stateline.org. 

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