Water and sewer affordability in the United States: a 2019 update

Abstract

This study uses contemporary metrics and data from an original, representative sample of water and sewer utilities in the United States to calculate the affordability of basic single-family residential water and sewer services for lowincome households in 2019. Results show that affordability conditions have worsened on average since the last such study in 2017: low-income households must spend an average of 12.4% of their disposable income (up from 10.9%) and/or work 10.1 h at minimum wage (up from 9.9 h) to pay for basic monthly water and sewer services. Analysis suggests that rising prices combine with underlying economic trends to exacerbate affordability. K E Y W O R D Saffordability, drinking water, rates, sewer

Measuring water affordability and the financial capability of utilities

“…Importantly, this metric was designed to be one of several indicators to determine utility financial capability (EPA, 1995(EPA, , 1997. However, this metric has often been conflated with (and improperly used as an indicator of) household affordability (Teodoro & Saywitz, 2020).…”

“…The use of MHI has received considerable scrutiny, in part because it does not capture impacts on low-income residents, who are most sensitive to water affordability challenges (Mack & Wrase, 2017;NAPA, 2017;Raucher et al, 2019;Teodoro, 2018;Teodoro & Saywitz, 2020). There are a growing number of metrics based on assessing the financial burden for the 20th percentile income (i.e., low-income) instead of the median income household (Raucher et al, 2019;Teodoro, 2018).…”

“…Household affordability refers to the ability for a household to pay for the basic water services needed for drinking, cooking, cleaning, and sanitation without undue hardship. Low-income households, those with incomes in the lowest 20th percentile, already spend an average of 16.5% of their disposable income (income remaining after paying for other essential services like housing, energy, and food) on water services and minimum wage earners work 10 hr each month to pay for water services (Teodoro & Saywitz, 2020). Additional increases in water rates may require households to make tradeoffs with other basic living expenses (e.g., rent, electricity, food).…”

Examining Recent Trends in the Racial Disparity Gap in Tap Water Consumption: NHANES 2011–2018

“…Other households in the US lack consistent access to tap water at home because of water shutoffs due to affordability issues 8 , which disproportionately affect residents in low-income housing, and Black and Hispanic households 9,10 . The differential treatment of individuals in these categories increases exposure to environmental injustice and racism 11 which may affect both access to and use of tap water.…”

An affordability assessment of consolidated management of nitrate treatment

“…The affordability of water services is a growing concern across the water sector as many factors—including water quality‐related treatment and compliance needs—are causing drinking water, wastewater, and stormwater rates to escalate at a rate exceeding that of general inflation (AWWA, NACWA, WEF, 2019; Mack & Wrase, 2017a; Teodoro, 2019; Teodoro & Saywitz, 2020). The affordability challenge is especially critical in many small communities because of the economies of scale generally associated with water treatment technologies.…”