Every four to five years, the U.S. Department of Energy’s Energy Information Administration surveys American households about energy use and affordability. Preliminary results from the 2024 Residential Energy Consumption Survey (RECS) point to a notable increase in energy insecurity—a trend that policymakers, builders, and industry stakeholders cannot ignore.

EIA defines energy insecurity as the inability to meet household needs due to economic constraints. Indicators include:

• Forgoing necessities to pay for home energy
• Maintaining unhealthy indoor temperatures
• Receipt of disconnection notices
• Inability to use heating and cooling equipment because of utility service disconnection, inability to afford bulk fuel delivery, or broken equipment

In this recent survey, 33 percent experienced energy insecurity, up from 27 percent in 2020 – a meaningful increase that reflects growing strain on household budgets.

What’s Driving Energy Insecurity

Several widely recognized factors likely contribute to the trend of growing energy insecurity, including rising and volatile utility costs, aging, inefficient housing stock, more frequent extreme weather events, and broader cost-of-living pressures.

Together, these dynamics are increasing the share of income that households must allocate to energy—particularly for low- to moderate-income families.

Implications for Policymakers

Energy affordability is increasingly central to cost-of-living concerns. Policymakers face mounting pressure to move from discussion to action. Key policy levers can include:

• Expanding energy efficiency and retrofit incentives
• Strengthening and enforcing building codes
• Supporting low-income energy assistance programs such as the Low Income Energy Assistance Program

“Through a combination of state and federal energy retrofit incentives and energy code adoption and enforcement, more can and should be done to lower home energy costs for American families,” said NAIMA President and CEO Curt Rich. “

How the Housing Industry is Responding

The housing sector is already reacting to concerns about rising energy costs. According to the National Association of Home Builders/Wells Fargo Housing Index Report, 61 percent of builders report that energy costs could negatively impact housing demand. In response, builders are designing homes for lower monthly energy costs, expanding high-performance and net-zero construction, and making energy performance more transparent to buyers. Energy efficiency is no longer a premium feature – it’s become a core component of housing affordability.

Conclusion

The rise in energy insecurity reflects a broader shift: energy costs are now a defining factor in household financial stability.

Addressing this challenge will require coordinated action across policy, housing, and energy systems. Without it, more families will face difficult tradeoffs – and the cost of inaction will continue to grow.