Which Heating and Cooling Systems are Most Common for New Homes?
Based on information from the Census Bureau's Survey of Construction (SOC), 95.4% of new single-family homes started in 2020 had a central air conditioning (AC) system — slightly higher than 95% in 2019 and a steady rise from 85.5% in 2000.
The share of new single-family homes started with central AC differs across the country’s nine Census divisions, however. All homes started in the West South Central, South Atlantic and West North Central divisions had central AC installed, followed by 99% in the East South Central and 96% in the East North Central. New England (83%) and the Pacific (80%) had the lowest shares of homes started with central AC, albeit both shares increased from 2019.
Almost all (99% in 2020) of new single-family homes started use either an air or ground source heat pump or a forced air system for the primary heating equipment. The share using an air or ground source heat pump has increased from 23% in 2000 to 38% in 2020. Meanwhile, the share relying on a forced air system has slipped from 71% to 59% over the same time frame.
The type of heating system installed varies significantly by Census division. Air or ground heat pumps are more common in warmer regions of the country, such as East South Central (77%), South Atlantic (75%), and West South Central (20%). Very few homes in colder regions have air or ground heat pumps because air source heat pumps (traditionally the most common type) become less efficient and rely more heavily on a back-up heating system during the winter.
The SOC also provides data on the primary fuel used to heat new single-family homes. Approximately 50% of new homes started in 2019 use natural gas as the primary heating fuel, compared to 45% powered by electricity. Like heating and AC systems, the primary heating fuel source varies significantly by region of the country, comparable to findings from NAHB's What Home Buyers Really Want, 2021 Edition, on consumer preferences for heat sources.
NAHB Economist Fan-Yu Kuo provides more analysis in this Eye on Housing post.
Latest from NAHBNow
Advocacy
Jun 10, 2026
Over 1,100 Housing Advocates Call on Congress to Address AffordabilityMore than 1,100 builders, remodelers and other housing industry professionals went to Capitol Hill today to call for congressional action to improve affordability and help builders to increase the production of affordable, attainable homes.
Codes and Standards
Jun 09, 2026
Connecticut Moves Toward 6-Year Building Code Cycle in Possible TrendConnecticut Governor Ned Lamont has signed into law a bill that lays the groundwork to expand the state’s building code adoption cycle to every six years rather than the current three years.
Latest Economic News
Economics
Jun 10, 2026
Inflation Surpassed 4% in MayInflation accelerated to a new three-year high in May, driven by continued increases in energy costs from the Iran war. Energy costs drove more than 60% of the monthly increase, with national gasoline prices jumping more than a dollar since the war began.
Economics
Jun 10, 2026
Home Building Regulatory Cost Burdens Increased 40% from 2021 to 2026A new NAHB study shows that, on average, regulations imposed by government at all levels account for $131,734, or 26.4%, of the final price of a new single-family home built for sale. Of this amount, $46,795 is due to a higher price for the finished lot, attributable to regulations imposed during the lot’s development.
Economics
Jun 09, 2026
Existing Home Sales Increased in MayExisting home sales rose to a five-month high in May as more first-time buyers stepped back into the market. The share of first-time buyer reached 35% in May, the highest since June 2020. However, sales remained weak compared to historical norms, with still-tight inventory continued to push up home prices.