Energy costs disproportionately impact minority households, study shows

Heating, cooling, and powering a home is rarely affordable, and new research reveals that some Americans are paying a far higher share of their income on energy than others. A national study co-authored by Associate Professor George Homsy at Binghamton University, State University of New York, highlights a troubling reality: minority communities, particularly Black Americans, face disproportionately higher energy costs compared to the broader population.

The study, published in Energy Research & Social Science, is the first to examine energy burden—the percentage of household income spent on essentials such as heating, lighting, cooking, and air conditioning—through the combined lenses of both race and income. Drawing on data from the U.S. Department of Energy and analysing 65,000 census tracts, the research found that the average American household devotes 3.2 per cent of income to energy bills. Yet in African American majority census tracts, families spend an average of 5.1 per cent, with Latin American households also experiencing slightly higher burdens.

This disparity has far-reaching consequences. For families already balancing tight budgets, an inflated energy bill is more than an inconvenience—it can mean choosing between paying for heat or buying medicine, between covering the electricity bill or affording nutritious food. Homsy emphasised that the disparity is not simply a reflection of lower income levels. “We often say that African Americans suffer more, but we often blame it just on income. And the reality is, there is something more there. It’s not just because they tend to be poor. There is something that’s putting them at a disadvantage,” he explained.

A closer look at housing sheds light on these disadvantages. Many minority households are located in older properties, which often lack insulation, rely on outdated appliances, and require greater energy to maintain. Compounding the issue, these homes are frequently rented rather than owned, leaving residents with little control over making upgrades that could reduce consumption. Without the ability to invest in energy efficiency, households remain locked into higher energy bills, reinforcing a cycle of financial strain.

Homsy noted that while other studies have explored energy burden, none have captured how race and income intersect to shape household experiences. A Black household with a middle-class salary, for example, may still encounter higher energy costs simply because of the condition or age of the housing stock in their neighbourhood. “All of these things combine to put extra burden on African Americans – that’s the bottom line of the paper,” he said.

For Homsy, the research has urgent policy implications. He called for targeted efforts to reduce inequities rooted in decades of housing discrimination and urban planning decisions that left minority communities at a disadvantage. He and a colleague are also studying how sustainability officials attempt to lower energy burdens for renters, a challenge given the limits of landlord-controlled properties. “It is harder to get to rental units where a lot of poor people live,” Homsy acknowledged. “We need to work harder to get into these communities of colour.”

More information: George Homsy et al, Energy burden: Exploring the intersection of race, income, and community characteristics across the United States, Energy Research & Social Science. DOI: 10.1016/j.erss.2025.104207

Journal information: Energy Research & Social Science Provided by Binghamton University

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