The Tool Desk
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Why air-conditioning is becoming harder to afford
Cooling costs are rising within a broader household energy squeeze. The International Energy Agency reports that global household energy bills were about 4% higher in real terms in 2024 than in 2019, and that bills rose 16% year on year at the 2022 peak of the global energy crisis. These figures cover household energy overall, not air-conditioning alone. The IEA also reports that more than 120 million households in advanced economies spent over 10% of their income on residential heating, cooling and appliances combined.
Heat exposure is increasing, too. The European Commission Joint Research Centre found an upward trend in cooling degree days from 1979 to 2024. More hot days can mean greater demand for cooling, but the ability to meet that demand varies with a household’s resources and its home.
Cooling need and ability to pay are unequal
In surveyed EU countries, around one in four households said they had difficulty keeping their home cool in 2023, according to the European Commission Joint Research Centre. Its modeling estimated that 21% of potential residential cooling energy demand in the EU went unmet in 2024. Meeting that modeled demand with conventional air-conditioning would have required an additional 10 TWh of electricity, about 0.4% of EU electricity consumption that year. This is an estimate of unmet energy demand, not a count of households without air conditioners.
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The JRC also found that 57.5% of EU households unable to keep adequately warm in winter reported difficulty maintaining a cool indoor temperature in summer. Its findings point to stronger difficulty among low-income households, apartment residents and households in southern and eastern regions. These EU findings should not be read as estimates for other regions.
In New York City, the Office of the Comptroller reported in 2025 that 11% of residents lacked air conditioners at home. A study cited in the report found that 21% of renters had an air conditioner but did not use it because of cost. The Comptroller estimates that extreme heat causes 580 premature deaths in the city each year; among people who died at home during extreme heat, the report says 42% had air conditioners that were not working or in use and 58% had none. These are city-specific figures and estimates, not a general measure of heat deaths elsewhere.
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Why having an air conditioner may not be enough
Purchase and installation come first
Buying a unit is only part of the initial expense. Installation, room requirements and whether the home can accommodate the equipment can affect what a household must spend. The International Energy Agency says efficient air conditioners can lower operating costs, but that consumers may not be able to access or identify them easily. A lower purchase price alone does not establish which option will cost less over time.
Running costs depend on the home as well as the unit
Electricity use depends on equipment efficiency, local rates, how long and how often it runs, and how much heat the home gains or retains. The IEA identifies inefficient homes and appliances as sources of additional pressure on energy bills. The U.S. Department of Energy also identifies older appliances and inadequate insulation as possible contributors to energy burden. No single unit or savings figure applies across homes with different climates, room sizes, building conditions and usage.
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Renters may have less control over upgrades
The Department of Energy’s Low-Income Energy Affordability Data (LEAD) page says 52% of low-income households in its data are renters. It describes a split incentive: a landlord may pay for building improvements while tenants receive the benefit of lower energy bills. The percentage reflects LEAD data, not a current estimate for every location or rental market.
How to compare cooling options by total cost
Before choosing equipment or an improvement, compare the costs and constraints that apply to the specific home. The available evidence does not establish a universal best option or individualized savings estimate.
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- Upfront expense: Include the unit and any installation needed, not just the advertised appliance price.
- Expected electricity cost: Consider the unit’s expected use, local electricity rates and how often cooling will be needed.
- Room and climate fit: Check whether the equipment suits the room and local conditions; a price comparison alone does not establish cooling performance.
- Building condition: Consider heat exposure and whether insulation or other efficiency improvements could reduce future cooling demand.
- Permission and control: Renters may need landlord approval to install equipment or modify the building.
- Assistance and timing: Check whether local help is available, who qualifies, what it covers and when applications are accepted.
What can lower the burden
Efficient equipment can help, but costs remain a barrier
More efficient equipment can reduce the energy required for cooling, according to the IEA, but an efficient unit may cost more upfront or be hard to identify. The Department of Energy notes that efficient solutions can be too expensive to become the preferred choice. Compare initial and likely operating costs rather than assuming that either the least expensive unit or the most efficient one is automatically affordable for a given household.
Weatherization addresses the building, not just the appliance
Weatherization and efficiency measures can reduce energy use and improve comfort. The Department of Energy says weatherization can also improve indoor air quality and safety. Whether a household can make those changes depends on the home, available financing and, for many renters, landlord participation. DOE reports that services supported with its funds reach approximately 35,000 homes each year; that figure describes DOE-funded program reach, not all weatherization activity.
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Assistance may cover bills or weatherization
In the United States, the Low Income Home Energy Assistance Program (LIHEAP) includes help with heating or cooling costs and weatherization, according to a September 24, 2026 brief from HHS’s Office of the Assistant Secretary for Planning and Evaluation. Eligibility, funding, benefit types and application windows differ. Check with the relevant local agency to learn what is available rather than assuming every household qualifies or that funds are currently open.
Read energy-burden statistics carefully
Energy burden is generally the share of household income spent on home energy, not the share spent on air-conditioning alone. DOE’s LEAD page reports an average burden of 6% for low-income households and 2% for non-low-income households in the data presented. LEAD defines burden using gross household income spent on home energy and draws on American Community Survey data from 2018–2022 and EIA utility data; these are not current cooling-only figures.
LEAD is an online tool for examining household energy characteristics and informing energy goals and program planning. The Energy Information Administration’s Residential Energy Consumption Survey provides nationally representative U.S. household energy data, but its 2024 air-conditioning state highlights were listed for release in spring 2027. Detailed cooling expenditures and state comparisons therefore should not be inferred from the information currently described here.
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