In this article, we will be looking at the 15 most expensive cities to heat a home in winter. If you want to skip our detailed analysis, you can go directly to the 5 Most Expensive Cities To Heat A Home In Winter.
The HVAC Industry: An Analysis
Heating, ventilation, and cooling (HVAC) systems help maintain a comfortable and ambient environment. The demand for HVAC systems is rising, especially due to changing climate conditions. According to a report by Grand View Research, the global HVAC systems market was valued at $150.9 billion in 2023. The market is forecasted to grow to $234.9 billion by 2030, at a compound annual growth rate (CAGR) of 6.5% from 2024 to 2030.
Rising awareness regarding climate issues has surged the demand for more efficient HVAC units. Consumers are looking for units that consume less energy and release fewer greenhouse gases into the environment. The trend towards green buildings has consequently increased the installation of HVAC systems such as thermostats and sensors that can be controlled from a smartphone. Customer demand drives companies to develop HVAC systems that offer better connectivity. Incorporating the latest technology in the products is predicted to fuel growth in the industry in the longer term.
North America was the second-largest consumer of HVAC systems in 2023. According to a report by Grand View Research, the US HVAC systems market size was valued at $17.15 billion in 2022. The market is forecasted to grow to $26.93 billion, at a compound annual growth rate of 5.6% from 2023 to 2030.
In 2022, the Midwest region of the country accounted for the maximum revenue share of 22.4%. The Western region of the United States has the highest population and, therefore, a growing residential sector. The growing residential sector, larger population, and relatively higher disposable income have earned the midwestern region the highest market share. The region has also been forecasted to grow significantly during the forecast period.
Major Players in the HVAC Industry
Carrier Global Corp (NYSE:CARR) is one of the top players in the global HVAC industry. On November 28, Carrier Global Corp (NYSE:CARR) announced the launch of its latest i-Vu weather forecasting add-on for the i-Vu building automation system. The add-on would enable building owners to gauge the outdoor air quality without the need for other expensive products. The add-on also connects with weather forecasting agencies and optimizes the indoor air temperature accordingly. The add-on will increase the system’s overall efficiency and enable predictive control strategies during climatic events.
Emerson Electric Co (NYSE:EMR) is another noteworthy name in the HVAC industry. The company has a large range of products, including thermostats and compressors. One of the company’s business units focuses on automation and commercial applications, while the other focuses on residential applications. On November 20, Emerson Electric Co (NYSE:EMR) announced the launch of TopWorx DVR Switchbox. The switch box is a valve positioner that provides reliable position feedback on the valve. This product has been designed for industry plants, platforms, and pipelines.
Trane Technologies plc (NYSE:TT) is another prominent name in the industry. The company offers HVAC solutions and systems for residential and commercial applications. On November 1, Trane Technologies plc (NYSE:TT) reported earnings for the fiscal third quarter of 2023. The company reported an EPS of $2.79, beating estimates by $0.12. The company’s revenue for the quarter grew by 11.69% and amounted to $4.88 billion, ahead of market consensus by $81.58 million. As of November 30, the company has surged 36.39% over the past six months. Here are some comments from the company’s earnings call:
“Bookings were exceptionally strong in our commercial HVAC businesses globally, with organic bookings growth of low to mid-teens in all segments. Our Americas commercial HVAC business was once again a standup, with organic bookings up mid-teens in the quarter and up approximately 65% on a 3-year stack. Enterprise backlog ended the quarter at $6.9 billion, with the composition shifting increasingly towards commercial HVAC. Year-to-date, backlog in commercial HVAC is up approximately $800 million. Over the past 3 years, our commercial HVAC backlog has nearly tripled, up approximately 170%. As residential and Thermo King have normalized, the backlog burn in these businesses has been completely offset by growth in commercial HVAC backlog, including a large percentage of long-cycle applied systems. We continue to drive strong demand and a healthy pipeline of projects in key growth verticals across our commercial HVAC businesses.”
While HVAC companies including Carrier Global Corp (NYSE:CARR), Emerson Electric Co (NYSE:EMR), and Trane Technologies plc (NYSE:TT) manufacture products that can help maintain a soothing and livable indoor environment, heating a home can be very expensive in the winter in certain cities. Let’s take a look at some of the most expensive cities in the US to heat a home in winter.
15 Most Expensive Cities To Heat A Home In Winter
Our Methodology
To compile our list of the most expensive cities to heat a home in winter, we have used average electricity and utility gas prices as our indicators. Electricity and gas prices are directly related to how expensive heating a home in winter is. The data for the average energy prices has been taken from the US Bureau of Labour Statistics. We have used the latest available data, which was for October 2023. We have also mentioned the average weather recorded in November in these cities. The subheading mentions the average highest and lowest temperatures. The list has been arranged in ascending order of average electricity prices and average utility gas prices.
Note: We have only ranked cities in the US.
15 Most Expensive Cities To Heat A Home In Winter
15. Atlanta
Average Electricity Price in October 2023 (per kWh): $0.15
Average Utility Gas Price in October 2023 (per Therm): $2.34
Average Weather in November (High/Low°F): 64.4°/41°
Atlanta is a city in Georgia. In Atlanta, the average electricity price in October 2023 was $0.15 per kilowatt-hour, while the average utility gas price for the same period was $2.34 per therm. As for the weather in November, the average high temperature was 64.4°F, and the average low temperature was 41°F.
14. Chicago
Average Electricity Price in October 2023 (per kWh): $0.16
Average Utility Gas Price in October 2023 (per Therm): $1
Average Weather in November (High/Low°F): 77°/39.2°
Chicago is located in Illinois and is one of the most expensive cities to heat a home in winter. During October 2023, Chicago recorded an average electricity price of $0.16 per kilowatt-hour and an average utility gas price of $1 per therm. Moving into November, the weather exhibited an average high temperature of 77°F and an average low temperature of 39.2°F.
13. Phoenix
Average Electricity Price in October 2023 (per kWh): $0.16
Average Utility Gas Price in October 2023 (per Therm): $2.63
Average Weather in November (High/Low°F): 77°/50°
Phoenix is a city in Arizona. The average electricity cost in the city for October 2023 stood at $0.16 per kilowatt-hour, with the average utility gas price reaching $2.63 per therm during the same period. In November’s weather, the average high temperature was 77°F, accompanied by an average low temperature of 50°F.
12. Miami
Average Electricity Price in October 2023 (per kWh): $0.16
Average Utility Gas Price in October 2023 (per Therm): $3.09
Average Weather in November (High/Low°F): 78.8°/69.8°
Miami is a city in Florida. In October 2023, Miami’s residents faced an average electricity price of $0.16 per kilowatt-hour and an average utility gas price of $3.09 per therm. November’s weather presented an average high temperature of 78.8°F and an average low temperature of 69.8°F.
11. Washington D.C.
Average Electricity Price in October 2023 (per kWh): $0.17
Average Utility Gas Price in October 2023 (per Therm): $1.44
Average Weather in November (High/Low°F): 59°/37.4°
Washington D.C. is the capital of the United States. It is one of the most expensive cities to heat a home in winter. October 2023 marked an average electricity price of $0.17 per kilowatt-hour (kWh) and an average utility gas price of $1.44 per therm in the city. As November unfolded, the weather displayed an average high temperature of 59°F and an average low temperature of 37.4°F.
10. Dallas
Average Electricity Price in October 2023 (per kWh): $2.15
Average Utility Gas Price in October 2023 (per Therm): $0.17
Average Weather in November (High/Low°F): 66.2°/46.4°
Dallas is a city in Texas. Dallas’s average electricity price reached $2.15 per kilowatt-hour (kWh) in October 2023, complemented by an average utility gas price of $0.17 per therm for the same period. November’s weather featured an average high temperature of 66.2°F and an average low temperature of 46.4°F.
9. Houston
Average Electricity Price in October 2023 (per kWh): $0.18
Average Utility Gas Price in October 2023 (per Therm): $1.55
Average Weather in November (High/Low°F): 69.8°/53.6°
Houston is a city in Texas. Houston experienced an average electricity price of $0.18 per kilowatt-hour (kWh) in October 2023, alongside an average utility gas price of $1.55 per therm for the same period. In November, the weather saw an average high temperature of 69.8°F and an average low temperature of 53.6°F.
8. Philadelphia
Average Electricity Price in October 2023 (per kWh): $0.19
Average Utility Gas Price in October 2023 (per Therm): $1.38
Average Weather in November (High/Low°F): 55.4°/41°
Philadelphia is located in Pennsylvania. During October 2023, Philadelphia recorded an average electricity price of $0.19 per kilowatt-hour (kWh) and an average utility gas price of $1.38 per therm. Moving into November, the weather exhibited an average high temperature of 55.4°F and an average low temperature of 41°F.
7. Baltimore
Average Electricity Price in October 2023 (per kWh): $0.19
Average Utility Gas Price in October 2023 (per Therm): $1.46
Average Weather in November (High/Low°F): 57.2°/42.8°
Baltimore is a city in Maryland. The average electricity cost in Baltimore for October 2023 stood at $0.19 per kilowatt-hour (kWh), with the average utility gas price reaching $1.46 per therm during the same period. In November’s weather, the average high temperature was 57.2°F, accompanied by an average low temperature of 42.8°F.
6. Detroit
Average Electricity Price in October 2023 (per kWh): $0.2
Average Utility Gas Price in October 2023 (per Therm): $1.16
Average Weather in November (High/Low°F): 48.2°/35.6°
Detroit is among the most expensive cities to heat a home in winter. In October 2023, Detroit residents faced an average electricity price of $0.2 per kilowatt-hour (kWh) and an average utility gas price of $1.16 per therm. November’s weather presented an average high temperature of 48.2°F and a low temperature of 35.6°F.
Click to continue reading and see the 5 Most Expensive Cities To Heat A Home In Winter.
Suggested articles:
- 10 Disadvantages of Long-Term Investments
- 15 States with the Best Economy Right Now
- 17 Best European Countries to Move to from the USA
Disclosure: None. 15 Most Expensive Cities To Heat A Home In Winter is originally published on Insider Monkey.