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 | Spring Leadership Meeting
Jun 12, 2026
Cabinet-Level Officials Discuss Regulatory Reform With NAHB MembersOn June 11, Housing and Urban Development Secretary Scott Turner, Small Business Administration Administrator Kelly Loeffler, Federal Housing Finance Agency Director William Pulte and Environmental Protection Agency Administrator Lee Zeldin discussed housing, environmental and small business regulatory issues during NAHB’s Spring Leadership Meeting.
Economics
Jun 11, 2026
Fed Rate Hike Possible Amid Inflation and Geopolitical UncertaintyThe bond market is projecting that it is now more likely than not that the next monetary policy move by the central bank is a federal funds rate increase rather than a cut. NAHB Chief Economist Robert Dietz provides his insights and recaps key factors shaping the market.
Latest Economic News
Economics
Jun 12, 2026
Single-Family Permits Continue to Decline Through April as Multifamily Activity StrengthensThrough April 2026, residential construction activity remained uneven across housing sectors. Single-family permitting continued to soften compared with a year ago, reflecting persistent affordability challenges and elevated borrowing costs, while multifamily permitting posted solid gains supported by stronger activity in several regions.
Economics
Jun 11, 2026
Residential Building Material Prices Rise at Highest Rate In Over Three YearsWholesale prices of goods used in residential construction rose in May as energy prices continued to climb.
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.