Across Income Levels, African American Families Have Higher Utility Bills Than Other Households

Energy burden refers to the percentage of income a household spends on energy for heating, lighting, air conditioning, cooking, and other utilities. Logically, this means lower-income households tend to have higher energy burdens. However, a new study from scholars at Binghamton University in New York and California State University, San Bernardino, has found that African American households spend more money on utility expenses compared to other families, even when adjusting for income levels.

Using 2019 data regarding nearly 65,000 census tracts in the United States, the authors found that the average household spends about 3.2 percent of its income on energy. However, families in majority-Black neighborhoods average energy costs that are 5.1 percent of their total income. Furthermore, this racial disparity was found even when comparing majority-White and majority-Black neighborhoods with similar median income levels.

According to the authors, higher energy burdens among African American families may be attributed to the lingering effects of redlining. Homes in majority-Black neighborhoods are more likely to be older and therefore, less energy efficient. Additionally, Black families are more likely to live in rental properties, which typically require tenants to pay for their own utilities, but leave home improvement responsibilities up to the landlord. Thus, if landlords do not pay for their property’s utilities, they have no financial incentive to make the necessary upgrades to improve energy efficiency.

Based on their findings, the authors believe policies aimed at reducing household energy burdens must be tailored to each distinct census tract, rather than universal policies that do not account for the unique needs of different communities.