As you take a walk through any new subdivision today, you’re likely to find open-concept floor plans, plenty of trendy finishes, and community amenities galore. What you’re less likely to discover are gas furnaces humming along. In their place, many builders are embracing the benefits of installing a heat pump — those sleek, efficient, and quiet systems that pull warmth from the air rather than burning fossil fuels. Although natural gas has been the gold standard in home heating options for decades, developers are abandoning gas altogether as building codes tighten, resources become more costly, and the climate crisis continues with no end in sight. Gas furnaces are being phased out of new builds because all-electric systems are cheaper to install, easier to maintain, and compliant with today’s local and federal building standards.
Gas furnaces first became popular after World War II, when suburban areas grew by leaps and bounds in areas where natural gas lines made central heating available to the masses. Infinitely easier than starting and stoking a fireplace hearth continually, gas furnaces offered instant warmth and lower operating costs compared to wood, coal, or oil. In many rural communities, reliable electricity hadn’t even arrived yet. Even where it was available, adoption was slow; by the 1990s, only around a quarter of American households relied on electric heat. Meanwhile, gas became the modern symbol of comfort and convenience. But although gas furnaces remain a powerful option, they leave behind more than just heat. Their carbon-heavy footprint is an environmental liability, and volatile market prices just add fuel to the proverbial fire.
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New laws are pushing builders toward all-electric homes
A residential double-stage gas furnace is installed in a basement – Nc Photo/Getty Images
Today’s subdivision builders aren’t just opting out of gas furnaces because of environmental concerns or customer preferences. They’re responding to a colossal regulatory shift that started during the Biden administration. Under the Energy Policy and Conservation Act (EPCA), the U.S. Department of Energy was empowered to set minimum energy-conservation standards for heating systems and use its authority to drive new requirements that made gas-fueled furnaces financially unwise. Although President Trump’s energy agenda seeks to roll back or delay those federal efficiency standards designed to curb gas-fueled systems, state-level regulations in places like New York, California, and Washington already signal that the gas furnace era in new homes is drawing to a close.
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In New York, for example, the 2023 All-Electric Buildings Act means that, starting in 2026, new home builds must have electric heating systems as well as appliances. California is heading in the same direction with its current Energy Code, requiring that new homes use all-electric systems, prohibiting natural gas hookups in many areas, and standardizing the use of heat pumps. Even some local governments are jumping on the anti-gas bandwagon. Montgomery County, Maryland, has also banned natural gas heating in new residential buildings.
Some critics argue these all-electric mandates could worsen the housing crisis. Others worry they will completely eliminate the gas ranges and cozy fireplaces many homeowners love. And whether heat pumps are truly efficient in frigid climates remains up for debate. Alternatives include buying an older home with existing gas hookups or engaging with local officials to advocate for more flexible building codes that balance worthy efficiency goals with greater lifestyle choices.
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