BDC report says heat pumps hit record share in new homes

The Building Decarbonization Coalition says U.S. building decarbonization is gaining ground, with heat pumps and electric heating reaching a record share in new homes and shipments beating fossil-fuel furnace sales in early 2026. The report also argues that affordability is becoming a major campaign issue, as candidates debate utility bills but largely avoid gas infrastructure spending.

Why it matters: - Heat pumps and electric heating are taking a larger share of the U.S. new-home market, signaling a broader shift away from gas systems. - The report says that shift could affect household energy bills, utility infrastructure spending and state policy debates heading into the midterms. - BDC argues that building decarbonization is central to long-term energy affordability and public health.

What happened: - The Building Decarbonization Coalition released its Momentum Q2 | 2026 report on July 14, 2026. - The report says heat pumps outpaced furnace sales by more than 30% in the first quarter of 2026. - The report also says newly built homes reached the highest-ever market share for electric heating and heat pumps in 2024.

The details: - In 2024, heat pumps and other electric heating equipment reached 61% market share in new housing units. - Gas heating fell to 38% market share in new homes in 2024, the lowest level since 1985. - Heat pump shipments exceeded gas and other fossil-fuel furnace sales by 32% in the first quarter of 2026. - Heat pump shipments were only 2% below air conditioner shipments in the quarter, the smallest first-quarter gap ever recorded between the two. - U.S. heat pump sales doubled over 15 years, rising from 1.8 million annual shipments in 2010 to 3.64 million in 2025. - The report says residential gas and electricity bills rose by a median of roughly 17% across states from 2019 to 2024. - The report says utility bills are increasingly surfacing in campaign debates over cost of living, utility profits, rate cases, data centers, climate policy and corporate accountability.

Between the lines: - BDC is framing building policy as an affordability issue, not just a climate issue. - The report suggests many candidates are discussing higher utility bills without addressing utility spending on gas pipelines and other delivery infrastructure. - Kristin George Bagdanov, BDC's associate director of research, said failing to include building decarbonization in energy platforms shows a lack of a holistic approach to helping families heat and cool their homes. - Bagdanov said the issue has “real financial as well as health consequences.”

What's next: - The report says 22 building decarbonization affordability bills have been introduced in 12 state legislatures this year, and 10 have already passed into law. - Line extension policies that would remove subsidies for gas system expansion are advancing in 12 states and Washington, D.C. - Those changes could put those states in line to join six states that have already partially or fully reformed gas line extension allowance policies. - Eleven active Future of Gas proceedings are moving through regulatory bodies across the U.S. - Future of Heat regulations have advanced in California, Colorado, Washington, D.C., Massachusetts and New York. - A thermal energy network in Hayden, Colorado, is creating jobs and is projected to deliver energy savings to local businesses as the town transitions away from fossil fuels after its coal plant closure.

The bottom line: - BDC says the market is already moving toward electric heating, and policymakers now face pressure to match that shift with affordability-focused utility and building rules.