Starting January 1, 2026, most new construction projects in New York State will be required to go all-electric—meaning no gas stoves, gas heating systems, or other fossil fuel-powered appliances. The law, part of the state’s climate initiative, prohibits natural gas, propane, and oil hookups in new residential and commercial construction, and will be applicable to any new buildings being constructed under seven stories in height.
What’s Covered?
The ban applies to:
- Gas stoves and ovens
- Gas furnaces and boilers
- Gas-fired water heaters
- Any fossil fuel-based systems in new buildings
Larger buildings (over seven stories) will be subject to the same rule starting on January 1, 2029.
Are There Exceptions?
While the law doesn’t explicitly ban gas utility lines, new hookups won’t be allowed where the fossil fuel ban applies. There may also be limited exceptions, such as:
- Backup generators for emergency use
- Certain commercial systems (e.g., pool heaters) (pending further regulatory guidance)
What about Existing Buildings?
Existing buildings are not affected, but future renovations or expansions could face increased scrutiny.
Why This Matters
This change impacts developers, builders, property owners, and current and potential real estate investors across New York. Planning for new construction projects will now require implementing electric HVAC systems, induction cooking, and heat pump technology, and the costs for such will invariably be passed along to the consumer, serving to increase new construction costs. The fact that these restrictions and requirements do not apply to existing buildings could increase demand for existing properties. Especially in areas already experiencing inventory shortages, this will serve to further push up prices. Title and real estate professionals should also be aware of these changes as part of closing diligence and construction contract reviews.
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