Rural Households Face Higher Energy Costs Than Cities

Higher heating costs are putting added pressure on household budgets in rural communities.

Liquefied natural gas terminal with spherical storage tanks, pipelines and cranes at port during sunset operations_Photo by Grispb via AdobeStock_1742893910.jpg

Liquefied natural gas (LNG) terminal with spherical storage tanks, pipelines, and cranes at the port during sunset operations.

Photo by Grispb via Adobe Stock

LUBBOCK, Texas (RFD-TV) — Rural households spend a larger share of income on home energy than urban households, with heating costs creating much of the gap, according to a USDA Economic Research Service report.

The report says 26% of rural households are energy-cost burdened, meaning they spend more than 6% of income on home energy, compared with 17% of urban households. The most remote rural counties averaged 4.16% of income spent on energy versus 2.4% in the largest metropolitan counties.

USDA says rural homes are less likely to use natural gas and more likely to rely on electricity, propane or fuel oil, which generally cost more. Rural areas also experience more very cold days, increasing heating demand.

Housing type adds to the burden. Mobile homes account for about 17% of rural housing units, compared with 3% in urban areas, and cost more per square foot to heat and cool.

Low-income rural households face the greatest pressure. About 45% of rural households below 200% of the federal poverty line experienced some form of energy insecurity, including shutoff notices or forgoing other necessities.

Farm-Level Takeaway: Higher home energy costs add another financial burden for rural families already facing elevated living and operating expenses.
Tony St. James, RFD-TV Markets Specialist

Tony St. James joined the RFD-TV talent team in August 2024, bringing a wealth of experience and a fresh perspective to RFD-TV and Rural Radio Channel 147 Sirius XM. In addition to his role as Market Specialist (collaborating with Scott “The Cow Guy” Shellady to provide radio and TV audiences with the latest updates on ag commodity markets), he hosts “Rural America Live” and serves as talent for trade shows.

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