New Orleans household expenses higher than national average

By Fritz Esker
Contributing Writer

A recent study from doxo.com indicated that New Orleanians’ household expenses are 11.7 percent higher than the national average.

The average monthly mortgage bill for a New Orleans homeowner is $1,511 compared to the national average of $1,321. However, the average monthly rent at $1,092 is lower than the national average of $1,191.

The average monthly utility bills in New Orleans total $467 with the national average at $351. In the report, “utilities” covered electric, gas, water & sewer, and waste & recycling. Regarding electricity usage, Entergy recently released a statement on its website saying the company saw its highest level of usage in over ten years this July.

“Cooling and heating costs can make up more than 55 percent of an average customer’s electric bill and lowering your thermostat even one degree below 78 can raise your bill as much as 3 percent,” said Amy Walt, Entergy’s vice president of meter to cash, in the statement.

The Crescent City, like much of the South, has been hit hard by a heat wave this summer. As of August 11, the city had reached 100 degrees seven times this summer when it had not reached that temperature at all since 2016.

The average monthly rate for auto insurance in New Orleans is $238, compared to the national average of $207. The website WalletHub.com listed a few reasons why car insurance is so high in the area. The first is auto repairs across the country are more expensive because new vehicles have added technology and features that are pricier to fix and/or replace. The average cost of vehicle repairs rose eight percent from 2014 to 2018, according to a National Association of Insurance Commissioners study. The second reason is many people in Louisiana drive uninsured. In 2019, 12 percent of Louisiana drivers lacked even minimum liability insurance. Lastly, population-dense areas like cities have higher premiums because cities tend to have more accidents and more property crime. In May, WVUE Fox 8 reported a 160-percent increase in vehicles stolen this year compared to 2022’s stats, a rate of nearly one car stolen every hour.

New Orleans residents’ average monthly cable and internet bills were $148 compared to the national average of $118. Tracy Wirtz, public relations manager for Cox Communications felt the study presented its data broadly and without much context. She also added that Cox offers programs like Connect2Complete and ConnectAssist to help low-income families get reduced rates. Connect2Complete provides low-cost internet for families with K-12 students. For low-income households without children, ConnectAssist can help. Applicants must be on at least one government assistance program such as SNAP or Medicaid. For more information, visit cox.com or call 1-800-234-3993.

For local residents struggling to pay their utility bills, the U.S. Department of Housing and Urban Development recommends contacting either the Low-Income Home Energy Assistance Program (LIHEAP) or the Weatherization Assistance Program (WAP). To be eligible for LIHEAP assistance, the annual household income limit for a single person is $26,040. For two people, the limit is $34,053. For three people, the limit is $42,065 (for the full explanation of eligibility, visit www.lhc.la.gov/energy-assistance). An applicant can only receive one LIHEAP benefit each season (heating season runs from Nov. 15 to Mar. 15 and cooling season runs from Apr. 1 to Sept. 30).

The WAP offers weatherization services to make energy-efficient spaces for Louisiana homeowners. Improvements can include insulation installation, air sealing, weather-stripping, duct sealing and other energy measures. Maximum qualifying income for a single-person household is $29,160. A two-person household is $39,440 and a three-person household is $49,720 (for the full list, visit www.lhc.la.gov/weatherization).

While New Orleans residents’ household bills were above the national average, their bills were only the 7th highest in Louisiana. Mandeville, Baton Rouge, Zachary, Prairieville, Walker and Plaquemine all had higher average monthly household bills than New Orleans. Louisiana’s national rank for average monthly household bills was 32nd out of 50. Hawaii was the most expensive state, and West Virginia was the least expensive.

Requests for comment from City Councilmember JP Morrell’s office, City Councilmember Oliver Thomas’ office and Progressive Insurance were not returned as of press time.

This article originally published in the August 21, 2023 print edition of The Louisiana Weekly newspaper.