A new study has found that utility fees are a significant and often overlooked factor driving eviction filings against tenants in the United States. The research, conducted by the Eviction Lab at Princeton University, indicates that these charges, which can include electricity, gas, water, and sewer costs, are a leading cause of housing instability for low-income renters.
Study Reveals Scope of Utility-Related Evictions
The study, published on Thursday, analyzed millions of eviction court records from 39 states between 2012 and 2022. It found that in approximately 10% of all eviction cases, utility fees were cited as a primary reason for the filing. In some states, the figure was as high as 25%. According to the researchers, these fees are frequently added to a tenant's rent, and when they go unpaid, they can trigger eviction proceedings just as quickly as missed rent payments.
“Utility fees are a hidden cost that can push renters over the edge,” said Dr. Emily Benfer, a visiting professor at Princeton and one of the study's authors. “Our data shows that these charges are not just an inconvenience; they are a direct pathway to eviction for millions of American families.” The study highlights that utility costs have risen sharply in recent years, with the average household spending over $300 per month on utilities, a figure that can be crippling for those earning minimum wage.
Disproportionate Impact on Vulnerable Communities
The research also underscores the disproportionate impact on Black and Hispanic renters, who are more likely to live in older, less energy-efficient buildings with higher utility costs. In these communities, the rate of eviction filings involving utility fees was 30% higher than in predominantly white neighborhoods. The study notes that this exacerbates existing racial disparities in housing stability.
“The burden of utility costs is not evenly distributed,” Benfer added. “Landlords in these areas often pass on the full cost of utilities to tenants, who are already struggling with high rents. This creates a cycle of debt and displacement that is difficult to break.” The study calls for policy changes, such as requiring landlords to disclose utility costs upfront and providing rental assistance that covers utility expenses.
Policy Implications and Tenant Protections
The findings come as several cities and states consider new tenant protections. In New York, a proposed bill would ban evictions for non-payment of utility fees, while California has already implemented a law requiring landlords to provide a 30-day notice before filing an eviction for utility debt. The study recommends that such measures be expanded nationwide.
“We need to recognize that utility fees are a form of rent,” Benfer said. “Policies that treat them as separate from rent are failing tenants. By integrating utility costs into eviction protections, we can prevent thousands of unnecessary displacements.” The study estimates that implementing such protections could reduce eviction filings by up to 15% in high-cost areas.
