Retrofit Relay
industry

Electric Heating Gains Momentum in New Homes

July 15, 2026 · ACHR News · Score: 68

Heat pumps are becoming a standard choice in new homes. A new report from the Building Decarbonization Coalition, using U.S. Census Bureau data, found that 61% of new housing units completed in 2024 had some form of electric heating, the highest share on record. Heat pumps — which both heat and cool a home by moving heat rather than burning fuel — made up 46% of all heating systems installed, nearly matching gas furnaces at 47%. Gas heating's share of new homes, 38% in 2024, is its lowest since 1985, down from 65% in 2000.

The shift is showing up in sales too. Heat pump sales outpaced gas and other fossil-fuel furnace sales by 32% in the first three months of 2026, and shipments were nearly as high as those for standalone air conditioners. Heat pump shipments have roughly doubled over the past 15 years, from 1.8 million units in 2010 to 3.64 million in 2025.

The report also points to rising energy costs as part of the picture: residential gas and electric bills rose by a median of about 17% between 2019 and 2024. The coalition argues that continuing to expand natural gas infrastructure adds unnecessary costs, and it's tracking related state-level activity, including 22 bills on energy affordability introduced in 12 states this year (10 already passed) and proposals in 12 states plus Washington, D.C. to end subsidies for gas system expansion. For homeowners, the trend suggests heat pumps are increasingly the default option in new construction, and worth a look if you're weighing a heating system replacement.

Rebate alerts

Get rebate alerts for your state

Free weekly digest. Unsubscribe anytime. Privacy policy.

Program details
Technology
heat pump

Rebates change. See what your state pays now.

Every federal, state, and utility program in one place, each stamped with the date it was last verified against the administering agency.