After spending 58 grand on yearly housing costs in San Francisco, it’s nice to know the energy bill will be relatively cheap.
Redfin reports that several California markets, including San Jose, Los Angeles, and Orange County, have low annual energy costs to housing costs ratios. Energy costs in these places hover around $1,100. Meanwhile, homeowners in markets like Cleveland, Indianapolis, and Cincinnati might spend only $6,000 to $8,000 on yearly housing costs, but more than $3,000 on energy bills.
Why is the cost of energy so high in these areas? Part of it is that the homes are often older and tend to have less insulation than newer homes. They also tend to rely on more expensive forms of heating, such as an electric furnace as opposed to a gas furnace in the Midwest, or more expensive still, oil boilers in New England. One of the most effective ways consumers can reduce their energy cost in these areas is to upgrade their heating equipment.
Also, homes in the Midwest and Northeast endure longer and colder winters.