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 29, 2026
From Builder to Elected Official: How to Run for Office with ConfidenceNAHB’s election guidebook program can help NAHB members and industry leaders who are thinking about running for office lead effective state or local campaigns.
Land Development
Jun 26, 2026
New NAHB Guide Addresses One of the Biggest Barriers to Missing Middle Housing: FinancingNAHB has released a new guide on financing missing middle housing. The guide is designed to help builders, developers and lenders better understand why these projects often struggle to secure financing and what can be done to close the gap.
Latest Economic News
Economics
Jun 26, 2026
Property Tax Revenue Leads State and Local Tax Growth in Q1 2026Property tax revenue collected by state and local governments was higher in the first quarter of 2026 according to the Census Bureau’s quarterly summary of state and local tax revenue.
Economics
Jun 25, 2026
State-Level Economic Growth Strengthened in the First Quarter of 2026State economic growth strengthened in the first quarter of 2026, with real GDP increasing in 46 states and the District of Columbia. According to the Bureau of Economic Analysis (BEA), state-level growth rates ranged from a 4.5% annualized increase in Washington to a 1.6% decline in South Dakota, while Delaware’s economy was essentially unchanged during the quarter.
Economics
Jun 25, 2026
PCE Inflation Hits 3-Years High in MayAs the Iran conflict pushed up energy prices, the Personal Consumption Expenditures (PCE) Price Index—the Federal Reserve’s preferred inflation gauge—accelerated to a three-year high in May.