US Apartment Buildings Increasingly Adopt Heat Pumps
Heat pumps are becoming the preferred choice for heating and cooling in new apartment buildings in the US, with over half of new constructions featuring these efficient electric appliances.
The US housing market has seen a significant shift towards heat pumps, with 53% of new apartment buildings constructed in 2025 featuring these efficient electric appliances. This marks the first year that heat pumps have been installed in over half of new apartment constructions nationwide.
Heat Pump Adoption Rates
The adoption rate of heat pumps in new apartment buildings has been steadily increasing, with 46% of new constructions featuring heat pumps in 2024. New houses, including row houses and town houses, are also seeing a significant increase in heat pump adoption, with 48% of new constructions featuring heat pumps in 2025, up from 45% in 2024.
The growing popularity of heat pumps is a positive sign for decarbonization efforts, as burning fossil fuels in buildings contributes nearly a tenth of the nation's total greenhouse gas emissions. According to Alan Durning, executive director of the Sightline Institute, improvements to heat pump technology and increased demand for air conditioning during climate change-fueled heat waves are driving the shift towards heat pumps.
Regional Variations
The adoption of electric heating, including heat pumps, varies regionally. In the South, 96% of new apartments are electrically heated, while in the Northeast, it's just 52%. The majority of all homes built last year had electric heating in some form, with 78% of new apartment units and 56% of new houses featuring electric heating.
Factors Driving Adoption
A combination of factors is driving the adoption of heat pumps, including improvements to the technology and increased demand for air conditioning. A federal tax credit expanded under the 2022 Inflation Reduction Act may have also spurred heat-pump installations, offering developers up to $5,000 per energy-efficient housing unit. Additionally, developers can reduce costs by skipping gas-line construction, with New Mexico land developer John Moscato estimating savings of $3,000 per lot.
| Region | New Apartment Heat Pump Adoption Rate |
|---|---|
| South | 96% |
| Northeast | 52% |
| National Average | 53% |
The trend towards electric heating has persisted for over two decades, with the majority of new homes built featuring electric heating in some form. While some states have standards that encourage new construction to go fully electric, others may not have such policies in place. However, as developers increasingly opt for electric heating appliances, the shift towards cleaner buildings is likely to continue.
