April 2025
Hard water bills
Consumers are facing increasing pressure from rising water bills, especially lower-income households and those in the Midwest.
Key takeaways
- The cost of water has increased significantly across the U.S. in recent decades. In fact, water, sewer and trash collection services charges have risen at nearly twice the rate of overall consumer prices. And in March, median monthly water utility payments were up 7.1% year-over-year (YoY), according to Bank of America data.
- Since 2022, water bills increased across the country, but only in the Midwest were bills higher than the national average in each of the past two years, according to Bank of America data. Yet the Mid-Atlantic region actually saw the greatest increase at 9.5% YoY in 2024.
- Higher-income households saw the biggest quarterly increase in water in 2024, according to Bank of America payments data. But lower-income households typically pay more as a percentage of their income. And with local utilities contending with rising operational costs caused in part by climate change-induced shifts, more households could fall into "water debt."
Read our full analysis for a more in-depth look at these trends.
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