BDC Report Shows Record-breaking Newly Built Home Market Share for Heat Pumps, Electric Heating
Building Decarbonization Coalition’s Momentum Q2 | 2026 report includes findings that show momentum for building decarbonization in the U.S. continues to grow, with the highest-ever new home market share for electric heating and heat pumps outpacing furnace sales by more than 30% in the first quarter of 2026.
Specific HVAC market insights from the report include:
The construction industry is shifting away from installing gas heating systems to heat pumps in newly built homes, with heat pumps and other types of electric heating equipment reaching their highest market share yet (61%) in new housing units in 2024; gas heating recorded its lowest market share (38%) in new homes since 1985.
The HVAC industry continues to drive building decarbonization, as evidenced by heat pump shipments surpassing gas and other fossil-fuel furnace sales by 32% in the first quarter of 2026, and heat pumps recording shipments that were 2% less than air conditioners in the quarter, the smallest first quarter gap between the two ever recorded.
In the U.S., heat pump sales have doubled over the past 15 years, from 1.8 million annual shipments in 2010 to 3.64 million in 2025.
The report also found that energy affordability is an important political issue heading into the midterm elections this fall, with utility bills increasingly appearing in campaign debates over cost of living, utility profits, rate cases, data centers, climate policy, and corporate accountability after residential gas and electricity bills rose by a median of roughly 17% across states from 2019 to 2024. Download the full report at https://buildingdecarb.org/momentum-q2-2026.
