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
Land Development | Advocacy
Aug 14, 2026
Key Land-Use and Zoning Provisions in Landmark Housing Law
The newly enacted 21st Century ROAD to Housing Act directs the Department of Housing and Urban Development to develop voluntary federal guidelines for state and local zoning best practices. Although not mandatory, the guidelines will help shape how communities are evaluated for federal grants and give states a model for developing their own enabling legislation.
Economics
Aug 13, 2026
Construction Employment Rises Amid a Cooling Labor Market
The overall labor market continued to lose momentum in July, with nonfarm payrolls falling by 23,000 and previous job gains revised sharply lower.
Latest Economic News
Economics
Aug 13, 2026
Building Material Prices Show Growth In July
Residential building material prices, excluding energy, rose 0.4% in July and were up 5.0% from a year ago. Energy prices fell again in July but remained significantly higher than a year ago. Meanwhile, prices for services were down 0.3% over the month but were 6.2% higher than a year ago.
Economics
Aug 13, 2026
Homeownership Rate Edges Down to 65%
The latest homeownership rate declined to 65% in the second quarter of 2026, according to the Census’s Housing Vacancy Survey (HVS). The homeownership rate was unchanged from a year ago, and not statistically different than the rate in the first quarter of the year (65.3%).
Economics
Aug 12, 2026
Inflation Eased Slightly in July
Led by declines in gasoline and diesel prices, inflation eased for the second consecutive month after reaching a three-year high in May. As energy prices moderated, shelter resumed its role as the largest driver of headline inflation, accounting for one-third of the annual increase and over two-thirds of the monthly increase.