Original data and independent reporting for the HVAC trade

Author: The HVAC Brief Editorial Team

  • Heating Oil Prices: $5.54 a Gallon and What Drove the 2026 Spike

    Heating Oil Prices: $5.54 a Gallon and What Drove the 2026 Spike

    Last reviewed: August 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

    The short answer

    US residential heating oil averaged $4.01 a gallon across the 2025/26 heating season, up 9.8% on the season before, and finished at $5.54 on 2026-03-30. The season peaked at $5.57 on 2026-03-23, the highest weekly price since November 2022.

    The move was concentrated, not gradual. In the week of March 9, 2026 the national residential price jumped from $4.27 to $5.09, a 19.3% rise in a single week, then kept climbing for two more weeks before the season closed.

    The Energy Information Administration surveys residential heating oil prices weekly, but only from October through March. That means the number most sites quote in summer is a stale March figure, and the current published reading will not change until the survey restarts. Everything below states which week it describes.

    What heating oil costs right now

    The most recent published price is $5.54 per gallon for the week ending 2026-03-30. That is the final reading of the 2025/26 season. EIA does not survey residential prices between April and September, so this figure stands as the current published price until the new season begins in October.

    Measure, 2025/26 season Price per gallon Week
    Most recent published price $5.54 2026-03-30
    Season peak $5.57 2026-03-23
    Season low $3.53 during the season
    Season average $4.01 26 weekly readings
    Prior season average, 2024/25 $3.65 28 weekly readings

    How this season compares

    At $4.01, the 2025/26 average sits 9.8% above 2024/25 and is the highest season average since 2022/23, when the average was $4.82. The peak of $5.57 is below the $5.90 reached in November 2022 but above every other season in the last decade.

    $2$3$4$5$62017/18 peak $3.222017/18 average $2.963.2217/182018/19 peak $3.372018/19 average $3.243.3718/192019/20 peak $3.122019/20 average $2.923.1219/202020/21 peak $2.902020/21 average $2.472.9020/212021/22 peak $5.132021/22 average $3.745.1321/222022/23 peak $5.902022/23 average $4.825.9022/232023/24 peak $4.392023/24 average $4.044.3923/242024/25 peak $3.942024/25 average $3.653.9424/252025/26 peak $5.572025/26 average $4.015.5725/26Season averageSeason peakDollars per gallon, residentialHeating season runs October to March. EIA surveys residential prices weekly during the season only.
    US residential heating oil price by heating season, season average and season peak. Source: EIA series W_EPD2F_PRS_NUS_DPG, weekly residential No. 2 heating oil. Season aggregation by The HVAC Brief.
    Heating season Average Peak Change in average
    2020/21 $2.47 $2.90
    2021/22 $3.74 $5.13 +51.2%
    2022/23 $4.82 $5.90 +29.0%
    2023/24 $4.04 $4.39 -16.3%
    2024/25 $3.65 $3.94 -9.5%
    2025/26 $4.01 $5.57 +9.8%

    The March spike

    Most of the season’s increase arrived in three weeks. The price sat at $4.27 in the week of March 2, jumped to $5.09 on March 9, reached $5.17 on March 16 and peaked at $5.57 on March 23. That is a rise of about 30% across the month, into the tail of the heating season.

    Why the timing matters

    A March spike catches households that have already burned most of the season’s fuel and are topping up, and it lands after most budget plans and pre-buy contracts were priced. EIA publishes the price series, not the cause, so we do not attribute the move here. What the data supports is the size and the timing, not an explanation.

    What this means if you heat with oil

    A typical Northeast household using roughly 700 gallons a season would have paid about $2,808 at this season’s average, against $2,556 at last season’s, a difference near $252. Actual consumption varies widely with climate, house size and insulation, so treat that as an illustration of the delta rather than a bill estimate.

    Two decisions follow from a season like this. Pre-buy and budget plans are priced against expectations that a late spike can invalidate in either direction. And the gap between oil and alternatives widens: our analysis of heat pump shipment share shows heat pumps now take 45.7% of new central shipments, and the economics of a switch move with exactly this series.

    If you are weighing equipment rather than fuel, our HVAC price index tracks what the equipment itself costs, which has moved on a very different path from fuel.

    Methodology

    Prices are the EIA weekly residential No. 2 heating oil series, sourcekey W_EPD2F_PRS_NUS_DPG, US average, dollars per gallon, retrieved as the published historical spreadsheet from eia.gov. The series holds 795 weekly observations from 1990-10-01 to 2026-03-30.

    EIA surveys residential prices only during the heating season, October through March. We aggregate to seasons rather than calendar years because a calendar average would splice two different winters. A season labelled 2025/26 covers October 2025 through March 2026. Season averages, peaks and the week-over-week changes are ours, computed from the weekly series.

    Limitations

    • This is a national average. Regional prices, particularly in New England and the Mid-Atlantic where most oil heat is concentrated, can differ materially.
    • Residential prices include delivery and dealer margin, which vary by supplier, delivery size and contract type.
    • No price is published between April and September. Any current-sounding summer figure elsewhere is a March reading or an estimate.
    • We do not explain the March move. EIA publishes prices, not causes, and we do not attribute a cause we cannot source.
    • The household illustration uses a round 700 gallon assumption for arithmetic only. It is not a consumption estimate for any particular home.

    Frequently asked questions

    How much does heating oil cost right now?

    The most recent published US residential average is $5.54 a gallon for the week ending 2026-03-30, the final reading of the 2025/26 season. EIA surveys residential heating oil prices only from October through March, so this figure remains the current published price until weekly surveying resumes in October.

    Why are heating oil prices so high?

    The 2025/26 season averaged $4.01 a gallon, 9.8% above the season before, with a sharp move in March 2026 that took the price from $4.27 to a peak of $5.57 in three weeks. EIA publishes the price series but not the causes, so we report the size and timing rather than attributing a reason.

    What was the highest heating oil price?

    Within the last decade, the highest weekly residential price was $5.90 a gallon in the 2022/23 season. The 2025/26 peak of $5.57 on 2026-03-23 is the highest since then and above every other season in that period.

    When does EIA update heating oil prices?

    Weekly, during the heating season only. Surveying runs October through March and pauses from April to September. The series is W_EPD2F_PRS_NUS_DPG, published as a historical spreadsheet on eia.gov, and it holds weekly observations back to 1990.

    How much heating oil does a house use in a season?

    Consumption varies widely with climate, house size, insulation and thermostat behaviour, and EIA does not publish a single national per-household figure in this series. For arithmetic only, at this season’s $4.01 average a household burning 700 gallons would spend about $2,808, against $2,556 at last season’s average.

    Sources

    1. US Energy Information Administration, Weekly US No. 2 Heating Oil Residential Price, sourcekey W_EPD2F_PRS_NUS_DPG, dollars per gallon, 1990-10-01 to 2026-03-30.
    2. Air-Conditioning, Heating, and Refrigeration Institute, June 2026 Statistical Release, for heat pump shipment share.

    The HVAC Brief is an independent trade publication. We do not sell fuel or equipment, take advertising, or accept payment for placement. Corrections welcome.

  • Heat Pumps Took 3.4 Points of Share in Two Years. The Market Did Not Grow.

    Heat Pumps Took 3.4 Points of Share in Two Years. The Market Did Not Grow.

    Last reviewed: August 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

    The short answer

    Heat pumps have taken 3.4 points of shipment share from air conditioners in two years, and the total market has not grown at all. Through June 2026, heat pumps were 45.7% of combined US shipments, against 42.3% in the same period of 2024.

    The substitution is almost exact. Air conditioner shipments fell by 159,222 units between the 2024 and 2026 year-to-date figures. Heat pump shipments rose by 159,379. The combined total moved by 157 units.

    Most coverage of heat pump adoption reports the growth rate and stops. The growth rate on its own is misleading, because it does not say whether heat pumps are expanding the market or replacing air conditioners inside a fixed one. The AHRI year-to-date table answers that directly, and the answer is replacement.

    Heat pumps gained almost exactly what air conditioners lost

    Between the January-to-June periods of 2024 and 2026, air conditioner shipments fell 159,222 units while air-source heat pump shipments rose 159,379. Net change across the combined category: 157 units on a base of about 4.7 million, or 0.003%.

    That is a market converting rather than growing. Every additional heat pump leaving a factory is very nearly matched by an air conditioner that did not.

    0k500k1,000k1,500k2,000k2,500k2024 Air conditioners: 2,719,3612.72M2024 Air-source heat pumps: 1,997,1702.00M2024 YTDheat pumps 42.3%2025 Air conditioners: 2,500,2542.50M2025 Air-source heat pumps: 2,076,8872.08M2025 YTDheat pumps 45.4%2026 Air conditioners: 2,560,1392.56M2026 Air-source heat pumps: 2,156,5492.16M2026 YTDheat pumps 45.7%Air conditionersAir-source heat pumpsUS shipments, January to June
    US year-to-date shipments through June, air conditioners against air-source heat pumps. Source: AHRI June 2026 Statistical Release, published August 14, 2026. Share calculations by The HVAC Brief.
    Year to date through June Air conditioners Heat pumps Combined Heat pump share
    2024 2,719,361 1,997,170 4,716,531 42.3%
    2025 2,500,254 2,076,887 4,577,141 45.4%
    2026 2,560,139 2,156,549 4,716,688 45.7%
    2024 to 2026 change -159,222 +159,379 +157 +3.4 pts

    Shipment share is not installed base

    Heat pumps take nearly half of new shipments but heat only 16.13 million of 123.53 million US homes, about 13.1%. Natural gas central furnaces remain the main heating equipment in 53.26 million homes, more than three times as many.

    Those figures come from the EIA Residential Energy Consumption Survey for 2020, the current published vintage for equipment data. The gap between shipment share and installed share is what a slow-moving stock looks like: equipment lasts fifteen years or more, so even a decisive shift in what ships takes a long time to show up in what is installed.

    Two practical consequences follow. Service revenue stays weighted toward gas equipment for years after new sales tip. And any claim that heat pumps have taken over residential heating is describing the shipment mix, not the housing stock. Our verified HVAC industry statistics set out both measures side by side.

    Why the total is not growing

    Combined AC and heat pump shipments are up 3.0% against 2025 but flat against 2024. Gas warm air furnace shipments are down 6.2% year to date. Residential water heater shipments fell on both fuels. Volume across the category is stagnant.

    Prices are the other half of the picture. Producer prices for HVAC equipment have risen about 60% since 2019 while unit volumes have stood still, which means manufacturer revenue can grow on price alone. Our analysis of the price increase traces where that came from and what it means for a quote.

    What this means if you install

    Plan for mix change rather than volume growth. The work is shifting toward heat pump installs and away from straight cooling replacements, but the number of jobs is not rising. That argues for training and stocking around the mix shift, and for defending margin per job, rather than for hiring against expected volume. It also means A2L-capable heat pump competence is becoming table stakes rather than a differentiator.

    Methodology

    Shipment figures are from the AHRI June 2026 Statistical Release dated August 14, 2026, retrieved as a PDF from ahrinet.org. AHRI publishes the year-to-date table including a prior-prior year column, which is what makes the two-year comparison possible. Share percentages and the 2024 to 2026 changes are ours, calculated from that table. Installed base figures are EIA RECS 2020, tables HC6.1 and HC7.1, final data released March 2023.

    Limitations

    • Shipments measure units moving from manufacturers into distribution, not installations. They include channel stocking decisions.
    • AHRI covers participating manufacturers, so the data is close to but not identical with the whole market.
    • The near-exact offset between the air conditioner decline and the heat pump gain is what the published totals show. We do not claim a causal mechanism, because AHRI does not publish one.
    • RECS 2020 remains the current vintage for equipment data; the 2024 survey’s heating and cooling tables are due in spring 2027 See what the 2024 survey release covers.. The installed base has moved since 2020 and we do not extrapolate it forward.
    • Year-to-date figures cover January to June only and are not seasonally adjusted.

    Frequently asked questions

    What share of HVAC shipments are heat pumps?

    Air-source heat pumps were 45.7% of combined US central air conditioner and heat pump shipments through June 2026, up from 42.3% in the same period of 2024, per the AHRI June 2026 Statistical Release. In absolute terms that is 2,156,549 heat pumps against 2,560,139 air conditioners.

    Are heat pumps growing the HVAC market?

    No. They are taking share inside a flat market. Air conditioner shipments fell 159,222 units between the 2024 and 2026 year-to-date periods while heat pumps rose 159,379, leaving the combined total 157 units different on a base near 4.7 million.

    How many US homes have a heat pump?

    A heat pump is the main heating equipment in 16.13 million US homes, about 13.1% of 123.53 million housing units, per EIA RECS 2020. Natural gas central furnaces heat 53.26 million homes. Shipment share runs far ahead of installed share because equipment lasts fifteen years or more.

    Why do shipment share and installed share differ so much?

    Shipments describe what is being sold now; installed base describes what is already in homes. With service lives of fifteen years or more, a shift in what ships takes well over a decade to move the stock. Heat pumps near half of shipments against roughly 13% of homes is the expected gap, not a contradiction.

    Sources

    1. Air-Conditioning, Heating, and Refrigeration Institute, June 2026 Statistical Release, published August 14, 2026.
    2. US Energy Information Administration, Residential Energy Consumption Survey 2020, tables HC6.1 and HC7.1.
    3. US Bureau of Labor Statistics, Producer Price Index by Industry, series PCU333415333415.

    The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

  • AC and Heat Pump Shipments Jumped 21.7% in June. The Year Is Still Flat.

    AC and Heat Pump Shipments Jumped 21.7% in June. The Year Is Still Flat.

    Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

    The news

    US shipments of central air conditioners and air-source heat pumps rose 21.7% in June 2026 to 1,023,571 units, but the year to date is up only 3.0%. Gas furnace shipments are down 6.2% across the same six months, and water heater shipments fell on both fuels.

    One number puts the year in context. Combined AC and heat pump shipments through June total 4,716,688 units. The same period in 2024 totalled 4,716,531. That is a difference of 157 units across roughly 4.7 million, or about 0.003%. Two years of movement, no net growth.

    The Air-Conditioning, Heating, and Refrigeration Institute published its June 2026 shipment data on August 14. The monthly figure is strong enough to generate optimistic headlines on its own. Read against the year, and against 2024, it looks more like volatility inside a flat market than a recovery.

    What June actually showed

    Combined shipments of central air conditioners and air-source heat pumps reached 1,023,571 units in June 2026, up 21.7% from 840,769 in June 2025. Air conditioners alone rose 26.8% to 605,033 units. Heat pumps rose 15.1% to 418,538.

    Gas warm air furnaces also had a strong month, up 15.2% to 320,281 units from 278,043. Oil warm air furnaces, a much smaller category, rose 5.3% to 2,170.

    Equipment June 2026 June 2025 Change
    Central AC and air-source heat pumps 1,023,571 840,769 +21.7%
    Air conditioners only 605,033 477,270 +26.8%
    Air-source heat pumps only 418,538 363,499 +15.1%
    Gas warm air furnaces 320,281 278,043 +15.2%

    Why the year tells a different story

    Year-to-date combined AC and heat pump shipments are 4,716,688 units, up 3.0% from 4,577,141 in the same period of 2025. A 21.7% month inside a 3.0% year means the earlier months were weak enough to absorb most of June’s gain.

    Furnaces show the divergence more sharply. June gas furnace shipments rose 15.2%, but the year-to-date total of 1,552,934 units is down 6.2% from 1,655,417. A strong month has not changed the direction of the year.

    The comparison nobody is making

    Against 2025, this year is up 3.0%. Against 2024, it is flat to four significant figures: 4,716,688 units this year versus 4,716,531 in 2024, a gap of 157 units. The 2025 comparison looks like growth mainly because 2025 was the weaker year. Two years on, the market has not grown.

    Water heaters fell on both fuels

    Residential storage water heaters moved in the opposite direction over the year. Gas shipments are down 3.6% year to date at 2,153,890 units, against 2,233,304 in 2025. Electric shipments are down 5.4% at 2,491,598, from 2,634,037.

    June itself was positive for both, with gas up 6.7% to 363,347 and electric up 0.8% to 422,813. The same pattern as the cooling categories: a decent month inside a declining year.

    Year to date, through June 2026 2025 Change
    Central AC and air-source heat pumps 4,716,688 4,577,141 +3.0%
    Gas warm air furnaces 1,552,934 1,655,417 -6.2%
    Residential gas storage water heaters 2,153,890 2,233,304 -3.6%
    Residential electric storage water heaters 2,491,598 2,634,037 -5.4%

    What this means for contractors

    Shipments measure what manufacturers send to distribution, not what gets installed. They lead installed demand and they also reflect channel stocking decisions, so a jump can mean distributors are rebuilding inventory rather than that homeowners are buying more.

    Set the volume picture against pricing. Unit shipments are flat over two years while equipment producer prices have risen about 60% since 2019. Manufacturer revenue can grow comfortably on price alone while the number of boxes leaving the factory stays still. That is a different market from a growing one, and it argues for defending margin per job rather than planning for volume.

    The furnace divergence is worth watching into the heating season. A 6.2% year-to-date decline against a 15.2% June suggests replacement demand is being deferred rather than lost, which tends to arrive later as emergency work at higher margin and worse scheduling.

    Methodology

    All figures are from the AHRI June 2026 Statistical Release, dated August 14, 2026, retrieved as a PDF from ahrinet.org. AHRI compiles shipment data from participating manufacturers. Percentage changes are AHRI’s own; the 2024 comparison and the two-year observation are ours, calculated from the year-to-date table in the same release.

    Limitations

    • Shipments are not installations. They measure movement into distribution and include channel stocking.
    • AHRI data covers participating manufacturers, so it is close to but not identical with the whole market.
    • Monthly figures are not seasonally adjusted, so month-over-month reads carry seasonal noise. Comparisons here are year-over-year or year-to-date.
    • Categories are not additive across equipment types, and water heaters are a separate market from space conditioning.

    Frequently asked questions

    How many air conditioners and heat pumps shipped in June 2026?

    Combined US shipments of central air conditioners and air-source heat pumps were 1,023,571 units in June 2026, up 21.7% from 840,769 in June 2025. Air conditioners accounted for 605,033 units and air-source heat pumps for 418,538, per the AHRI June 2026 Statistical Release.

    Is the HVAC equipment market growing in 2026?

    Barely. Year-to-date combined AC and heat pump shipments are up 3.0% against 2025, but at 4,716,688 units they are within 157 units of the same period in 2024. Gas furnace shipments are down 6.2% year to date, and residential water heaters are down on both fuels.

    Why did June shipments jump so much?

    AHRI publishes the counts, not the causes, so any explanation is inference. A 21.7% year-over-year rise inside a 3.0% year indicates weak earlier months rather than a demand surge, and shipments include distributor stocking decisions as well as end demand.

    Do shipment figures tell you what homeowners are buying?

    Not directly. Shipments track units moving from manufacturers into distribution, which leads installed demand by some weeks or months and reflects inventory decisions. Installed volume and consumer demand are related but separate measures that AHRI does not publish.

    Sources

    1. Air-Conditioning, Heating, and Refrigeration Institute, June 2026 Statistical Release, published August 14, 2026. Public data also available in Excel from AHRI.
    2. US Bureau of Labor Statistics, Producer Price Index by Industry, series PCU333415333415, for the pricing comparison.

    The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections welcome.

  • HVAC Industry Statistics 2026: Verified Federal Data

    HVAC Industry Statistics 2026: Verified Federal Data

    Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

    The short answer

    HVAC industry statistics for 2026, drawn only from federal primary sources with the exact data series named so you can reproduce every figure. HVAC equipment producer prices are up 60.0% since 2019. There were 409,670 heating, air conditioning and refrigeration mechanics employed at a median wage of $29.33 an hour. Contracting firms employed about 1,355,400 people.

    Most published HVAC statistics pages name a source but do not date it or link it. Five figures that circulate widely do not survive a check against the primary data, and we show which ones below.

    The headline numbers

    Every row below names the federal series it comes from and the month or year it describes. Where a figure is a share rather than a count, we show the numerator and denominator so the arithmetic is visible. Nothing in this table is an estimate, a projection, or a market-research forecast.

    Measure Value Series Vintage
    HVAC equipment producer prices, change since 2019 +60.0% BLS PCU333415333415 Aug 2026
    Consumer prices, change over the same period +30.6% BLS CUUR0000SA0 Jul 2026
    HVAC and refrigeration mechanics employed 409,670 BLS OEWS 49-9021 May 2025
    Median wage, HVAC mechanics $29.33/hr BLS OEWS 49-9021 May 2025
    Median annual wage, HVAC mechanics $61,010 BLS OEWS 49-9021 May 2025
    Employees of plumbing, heating and AC contractors 1,355,400 BLS CEU2023822001 2026-07
    Average hourly earnings at those firms $42.61 BLS CEU2023822003 2026-07
    US homes using air conditioning 109.51M of 123.53M (88.7%) EIA RECS HC7.1 2020
    US homes with a heat pump as main heat 16.13M (13.1%) EIA RECS HC6.1 2020

    How much have HVAC equipment prices actually risen?

    Producer prices for HVAC equipment manufacturing rose 60.0% between the 2019 annual average and August 2026, from an index of 203.0 to 324.8. Measured from 2020 instead, the increase is 56.9%. Consumer prices rose 30.6% over the same 2019 baseline, so equipment has risen at roughly twice the rate of general inflation.

    The series is BLS PCU333415333415, the producer price index for NAICS 333415, air conditioning, warm air heating and commercial and industrial refrigeration equipment manufacturing. It measures what manufacturers charge, not what a homeowner pays installed.

    August 2026 is the highest reading in the series since 2019. Prices rose in 21 of the 31 month-over-month comparisons from January 2024 onward, so the direction has been consistent rather than a single spike. Our analysis of what drove HVAC prices up breaks the increase down by cause and shows why the refrigerant transition is not the largest factor.

    How many HVAC technicians are there, and what do they earn?

    The Bureau of Labor Statistics counted 409,670 heating, air conditioning and refrigeration mechanics and installers in its May 2025 Occupational Employment and Wage Statistics release. Median pay was $29.33 an hour, or $61,010 a year. The mean was higher at $31.14 an hour and $64,780 a year.

    The occupation code is SOC 49-9021. It covers people who install and repair the equipment, which is a narrower group than everyone employed by an HVAC business.

    Wage measure, SOC 49-9021 Hourly Annual
    Median $29.33 $61,010
    Mean $31.14 $64,780

    The mean sitting above the median indicates the distribution is pulled upward by higher earners rather than being symmetrical. Metro-level wages vary widely around these national figures.

    How many people work for HVAC contracting firms?

    Employment at plumbing, heating and air conditioning contractors reached about 1,355,400 people as of July 2026, up 18.8% from a 2019 average of roughly 1,140,992. Average hourly earnings across those payrolls were $42.61, up 40.2% from $30.39 in 2019.

    This is a different measure from the technician count above. The series is BLS Current Employment Statistics for NAICS 238220, which covers everyone on the payroll including office and supervisory staff, and it groups plumbing with heating and air conditioning. BLS does not publish HVAC separately at this level.

    The growth matters because it complicates the labour shortage narrative. A sector that added roughly a fifth of its headcount in seven years is not a shrinking trade, whatever hiring difficulty individual firms report. Our breakdown of HVAC contractor pay compares this wage growth against construction overall and the wider private economy.

    How many US homes have air conditioning and heat pumps?

    Of 123.53 million US housing units, 109.51 million use air conditioning equipment, or 88.7%. Another 14.02 million do not. A heat pump is the main heating equipment in 16.13 million homes, 13.1% of the stock.

    These come from the Energy Information Administration’s Residential Energy Consumption Survey for 2020, tables HC7.1 and HC6.1, final data released March 2023. RECS runs every five or six years, so 2020 remains the current vintage and any 2026 figure you see attributed to RECS is either the 2020 survey or an estimate somebody built on top of it.

    Main heating equipment Homes (million) Share of stock
    Natural gas central warm-air furnace 53.26 43.1%
    Heat pump 16.13 13.1%
    Electric central warm-air furnace 13.82 11.2%

    Gas furnaces still heat more than four times as many homes as heat pumps do. Any claim that heat pumps have taken over residential heating is describing new installations in particular markets, not the installed base.

    What changed in the rules in 2025 and 2026?

    Two regulatory changes affect nearly every residential job priced in 2026. Refrigerant rules changed twice, and the federal tax credit that paid up to $2,000 toward a heat pump expired. Both are settled law and both are widely misreported.

    1. New R-410A equipment cannot be manufactured or imported. Under 40 CFR 84.54(a)(1), effective January 1, 2025, self-contained residential and light commercial equipment using refrigerant with a global warming potential of 700 or greater is out of production. R-410A has a GWP of 2,088.
    2. Existing R-410A inventory can still be installed. EPA’s final rule at 91 FR 31284, published May 26, 2026 and effective July 27, 2026, allows equipment manufactured or imported before January 1, 2025 to continue to be installed, with no federal end date. See what the R-410A rule actually says.
    3. The Section 25C credit expired. The Internal Revenue Service states the Energy Efficient Home Improvement Credit applies to property placed in service before December 31, 2025. Installation date controls, not purchase date. See what the 25C expiry costs a homeowner.

    State rules can be stricter than the federal position, and several states run their own hydrofluorocarbon programmes. Confirm current requirements for the jurisdiction before relying on the federal rule for a specific job.

    Five widely repeated HVAC statistics that do not hold up

    These five figures appear across most HVAC statistics pages. Each fails a check against the primary source, either because the number is stale, the attribution names the wrong agency, or the vintage is missing so a reader cannot tell what year it describes.

    Commonly published claim What the primary data shows
    “Equipment prices increased about 40% since 2020,” usually credited to trade press BLS PCU333415333415 puts the increase at 56.9% against the 2020 average and 60.0% against 2019. The circulating figure understates it.
    “441,000 HVAC technicians employed,” credited to BLS with no year OEWS May 2025 reports 409,670 for SOC 49-9021. A larger number is either an older vintage or a broader occupation grouping, and the claim does not say which.
    “Median technician wage $27.55 per hour” That is an earlier OEWS vintage. The May 2025 median is $29.33, about 6% higher.
    “70% of new HVAC businesses fail in the first year,” credited to Energy.gov Misattributed. The Department of Energy does not publish establishment survival statistics. Business Employment Dynamics at BLS is the federal series that does. We are not substituting a figure here because we could not verify one at the NAICS 238220 level.
    “About 90% of US households use air conditioning,” credited to EIA with no year Directionally right, imprecise. EIA RECS 2020 table HC7.1 gives 109.51 million of 123.53 million homes, 88.7%. RECS 2020 is still the current vintage.

    The pattern behind all five is the same. A figure gets published without a vintage, a second page copies it without checking, and within a few cycles the number is detached from any document that could confirm or refute it. Naming the series and the release date is what stops that.

    How to cite and reproduce these figures

    Every BLS number above is retrievable without a subscription. The public data API at api.bls.gov/publicAPI/v2/timeseries/data/ accepts a plain POST with a list of series IDs and a year range, and returns JSON. No key is needed for small requests.

    1. POST a JSON body of the form {"seriesid":["PCU333415333415"],"startyear":"2019","endyear":"2026"} to the timeseries endpoint.
    2. Read the monthly observations from Results.series[].data[], filtering to periods M01 through M12 and skipping suppressed cells, which BLS returns as a hyphen.
    3. Compute the 2019 baseline as the mean of that year’s twelve monthly values, then index later observations against it.

    EIA RECS tables are PDFs at eia.gov/consumption/residential/data/2020/hc/. OEWS occupation data uses series IDs of the form OEUN000000000000049902101, where the trailing digits select the data type.

    Cite this page

    The HVAC Brief. “HVAC Industry Statistics 2026: Verified Federal Data.” Compiled from BLS series PCU333415333415, CUUR0000SA0, CEU2023822001, CEU2023822003, OEWS 49-9021 and EIA RECS 2020. Last reviewed August 2026. https://thehvacbrief.com/hvac-industry-statistics-2026/

    Journalists and researchers may reproduce these figures with attribution. All underlying data is public.

    Methodology and limitations

    We include a figure only when it comes from a named federal series we retrieved ourselves, and we publish the series ID and vintage alongside it. We exclude market-research forecasts, vendor surveys and any figure whose original source we could not reach.

    What these numbers do not tell you

    • Producer prices measure what manufacturers charge. Installed prices add distributor margin, labour, permits and local conditions, so the direction is reliable but the pass-through to a specific quote is not.
    • PCU333415333415 covers commercial and industrial refrigeration alongside residential HVAC, so it is broader than residential equipment alone.
    • NAICS 238220 groups plumbing with heating and air conditioning contractors. No federal series isolates HVAC contracting at this level.
    • OEWS SOC 49-9021 counts installers and mechanics, not everyone employed by an HVAC business. The two employment figures on this page are not interchangeable.
    • EIA RECS 2020 remains the current vintage for equipment data; the 2024 survey’s heating and cooling tables are due in spring 2027 See what the 2024 survey release covers., released March 2023. Housing stock and equipment shares have moved since, and we do not extrapolate.
    • Wage figures are nominal. Against consumer inflation of 30.6% since 2019, real gains are considerably smaller than the headline.
    • Nothing here is legal, tax or engineering advice. Requirements vary by jurisdiction.

    Frequently asked questions

    How many HVAC technicians are there in the US?

    The Bureau of Labor Statistics counted 409,670 heating, air conditioning and refrigeration mechanics and installers in its May 2025 Occupational Employment and Wage Statistics release, occupation code SOC 49-9021. Separately, plumbing, heating and air conditioning contractors employed about 1,355,400 people in total, a broader measure that includes office and supervisory staff.

    What is the average HVAC technician salary in 2026?

    The most recent federal figures are from May 2025. Median pay for SOC 49-9021 was $29.33 an hour, or $61,010 a year. The mean was $31.14 an hour and $64,780 annually. The mean exceeding the median indicates higher earners pull the distribution upward. Metro-level pay varies widely around these national numbers.

    How much have HVAC prices increased?

    Producer prices for HVAC equipment manufacturing rose 60.0% between the 2019 annual average and July 2026, according to BLS series PCU333415333415. Measured from 2020 the increase is 56.9%. Consumer prices rose 30.6% over the same period, so equipment inflated at roughly twice the general rate.

    What percentage of US homes have air conditioning?

    88.7% of US homes use air conditioning equipment: 109.51 million of 123.53 million housing units, per EIA Residential Energy Consumption Survey table HC7.1 for 2020. Around 14.02 million homes do not. RECS runs every five or six years, so 2020 remains the current published vintage.

    How many homes use heat pumps?

    A heat pump is the main heating equipment in 16.13 million US homes, 13.1% of the housing stock, per EIA RECS 2020 table HC6.1. Natural gas central furnaces heat 53.26 million homes, more than four times as many. Claims that heat pumps dominate residential heating describe new installations in specific markets, not the installed base.

    Is the HVAC industry growing?

    By employment, yes. Plumbing, heating and air conditioning contractors employed about 1,355,400 people as of July 2026, up 18.8% from a 2019 average near 1,140,992. Average hourly earnings rose 40.2% over the same period. That combination argues for competition over experienced workers inside a growing trade.

    Can R-410A equipment still be installed in 2026?

    Under federal rules, yes, provided all components were manufactured or imported before January 1, 2025. EPA’s final rule at 91 FR 31284, effective July 27, 2026, allows that inventory to continue to be installed and removed the earlier cutoff. New R-410A equipment cannot be manufactured or imported. Some states impose stricter limits.

    Where do these HVAC statistics come from?

    All figures come from federal primary sources: the Bureau of Labor Statistics for prices, employment and wages, the Energy Information Administration for housing and equipment shares, and the Code of Federal Regulations and Federal Register for rules. Each figure on this page names its series ID and vintage so you can retrieve it yourself.

    Sources

    1. US Bureau of Labor Statistics, Producer Price Index by Industry: Air Conditioning, Warm Air Heating and Commercial and Industrial Refrigeration Equipment Manufacturing, series PCU333415333415, monthly through July 2026, via the BLS Public Data API v2.
    2. US Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers, All Items, series CUUR0000SA0.
    3. US Bureau of Labor Statistics, Occupational Employment and Wage Statistics, SOC 49-9021, heating, air conditioning and refrigeration mechanics and installers, national estimates, May 2025.
    4. US Bureau of Labor Statistics, Current Employment Statistics, NAICS 238220, series CEU2023822001 and CEU2023822003.
    5. US Energy Information Administration, Residential Energy Consumption Survey 2020, tables HC6.1 and HC7.1, final data released March 2023.
    6. 40 CFR 84.54, via eCFR; EPA final rule 91 FR 31284, published May 26, 2026, RIN 2060-AW39.
    7. Internal Revenue Service, Energy Efficient Home Improvement Credit.

    By the HVAC Brief Editorial Team. The HVAC Brief is an independent trade publication: we do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. If you find an error, tell us and we will correct it and note the change.

  • HVAC Contractor Pay in 2026: What the Federal Data Shows

    HVAC Contractor Pay in 2026: What the Federal Data Shows

    Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

    The short answer

    Average hourly earnings for employees of plumbing, heating and air conditioning contractors reached $42.61, up 40.2% since 2019. That is faster than construction overall (34.8%) and faster than all private employers (34.4%).

    The trade also grew. Employment rose from about 1,141 thousand in 2019 to 1,352 thousand, an increase of 18.5%. A workforce that added roughly a fifth of its headcount is not a workforce in collapse.

    Labour cost is the driver contractors get blamed for and the one they can least easily explain. The federal data lets you be precise about it, and the precise version is more useful than the trade-press version, because it shows pay rising faster than the wider economy but slower than the equipment on the truck.

    10011012013014020192020202120222023202420252026HVAC and plumbing contractors137 in 2026All private employers134 in 2026Construction, all133 in 2026Average hourly earnings, index 2019 = 100
    Average hourly earnings indexed to each series’ 2019 annual average. Source: BLS Current Employment Statistics, series CEU2023822003 (plumbing, heating and air conditioning contractors), CEU2000000003 (construction) and CES0500000003 (total private). Analysis by The HVAC Brief.

    Pay is rising faster than the wider economy

    Since 2019, average hourly earnings in the trade have risen 40.2%, from $30.39 to $42.61. Construction as a whole rose 34.8% and the total private economy rose 34.4%. The trade is outpacing both, but the margin is a few percentage points, not the runaway premium sometimes described.

    Average hourly earnings 2019 Latest Change
    Plumbing, heating and AC contractors $30.39 $42.61 +40.2%
    Construction, all $30.75 $41.46 +34.8%
    All private employers $28.00 $37.62 +34.4%

    The shortage story does not fit the headcount

    Employment among plumbing, heating and air conditioning contractors rose from roughly 1,141 thousand in 2019 to about 1,352 thousand, up 18.5%. Whatever hiring difficulty individual shops experience, and it is real, the sector in aggregate added workers at a healthy clip. A pure shortage narrative does not explain a workforce that grew by nearly a fifth while pay rose faster than the economy around it.

    The more defensible framing is competition for experienced people inside a growing trade, which is a different problem with different answers. It argues for retention and training economics rather than for treating wage growth as an external shock.

    Labour is not the main reason quotes went up

    Set the two series side by side. Wages in the trade are up 40.2% since 2019. Producer prices for the equipment being installed are up 60% over the same period. Both outpaced consumer inflation at 31%, but equipment moved substantially further and faster.

    The margin trap

    If equipment is up 60% and your labour cost is up 40.2%, a fixed percentage markup on equipment has quietly inflated your equipment margin in dollar terms while your labour margin compressed. Shops that have not re-cut their pricing model since 2019 are often winning on the box and losing on the truck. Price the labour line deliberately instead of letting it ride as a percentage of a number that rose 60%.

    Methodology

    All figures are BLS Current Employment Statistics. Series CEU2023822003 is average hourly earnings of all employees for NAICS 238220, plumbing, heating and air conditioning contractors. CEU2000000003 is the same measure for construction, and CES0500000003 for total private. Employment is CEU2023822001, all employees in thousands. Baselines are each series’ 2019 annual average, the mean of twelve monthly observations. Index values set each series to its own 2019 base so growth rates are comparable.

    Limitations

    • NAICS 238220 covers plumbing alongside heating and air conditioning contractors. BLS does not publish HVAC separately at this level, so these figures are not HVAC-only.
    • Average hourly earnings for all employees includes office and supervisory staff, not only field technicians. It is a payroll measure, not a technician wage.
    • These are national averages. Metro-level pay varies widely around them.
    • Earnings are nominal. Against consumer inflation of 31% over the same period, real pay gains are considerably smaller than the headline.

    Frequently asked questions

    What do HVAC contractor employees earn?

    Average hourly earnings for employees of plumbing, heating and air conditioning contractors were $42.61 in the latest BLS reading, up 40.2% from a 2019 average of $30.39. This is a payroll-wide average including office staff, not a field technician wage.

    Is HVAC pay rising faster than other work?

    Yes, modestly. Since 2019 the trade rose 40.2% against 34.8% for construction overall and 34.4% for all private employers.

    Is there really an HVAC labour shortage?

    Employment in the sector grew about 18.5% since 2019, so the aggregate workforce expanded. Individual shops report genuine hiring difficulty, but the national data does not show a shrinking trade.

    Is labour why my quote went up?

    Partly, but it is the smaller factor. Wages rose 40.2% since 2019 while equipment producer prices rose 60%.

    Sources

    1. US Bureau of Labor Statistics, Current Employment Statistics, series CEU2023822003, CEU2023822001, CEU2000000003 and CES0500000003, retrieved via the BLS Public Data API v2.
    2. US Bureau of Labor Statistics, Producer Price Index by Industry, series PCU333415333415, and Consumer Price Index, series CUUR0000SA0.

    The HVAC Brief is an independent trade publication. Corrections welcome.

  • The 25C Heat Pump Tax Credit Expired. What That Costs You in 2026

    The 25C Heat Pump Tax Credit Expired. What That Costs You in 2026

    Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

    The short answer

    The Section 25C credit expired for anything placed in service after December 31, 2025. A qualifying heat pump that would have earned up to $2,000 off a 2025 tax bill earns nothing federally in 2026.

    Installation date controls, not purchase date. Equipment bought in late 2025 but installed in January 2026 does not qualify. State and utility rebates are separate and unaffected.

    For homeowners this is a straightforward price increase of up to $2,000 on the same job, arriving in the same year equipment prices set new highs. For contractors it removes a closing tool that had been doing quiet work in a lot of proposals.

    What the credit was

    The Energy Efficient Home Improvement Credit under Section 25C covered qualifying energy efficiency improvements, with a maximum annual credit of $2,000 for heat pumps, heat pump water heaters and qualifying biomass equipment. The IRS states the credit applies to qualifying property placed in service on or after January 1, 2023 and before December 31, 2025.

    The date that matters is when the equipment was placed in service. That is the installation, not the invoice and not the order. A system paid for in November 2025 and commissioned in February 2026 falls outside the credit.

    If you installed before the deadline

    A system placed in service on or before December 31, 2025 can still be claimed on the 2025 return. For 2025 specifically the IRS also requires that the item was produced by a qualified manufacturer and that the taxpayer reports the Qualified Manufacturer Identification Number, so keep that paperwork with the invoice.

    What it means for a 2026 quote

    Put the two changes together and the swing is larger than most homeowners realise. Equipment producer prices are up 60% since 2019 against 31% for consumer prices generally, and the federal credit that used to take up to $2,000 off the top is gone. A homeowner comparing a 2026 quote against a memory of their last replacement is comparing across both shifts at once.

    Same job, different year 2025 2026
    Federal 25C credit on a qualifying heat pump Up to $2,000 $0
    What controls eligibility Placed in service by Dec 31, 2025 Not available
    State and utility rebates Unaffected Unaffected

    What still works

    State and utility programmes are separate from the federal credit and did not expire with it. They are also routinely worth more than homeowners assume, and they vary enormously by utility rather than by state, so a neighbouring town can have a materially different offer. Check the specific utility before concluding there is no incentive available.

    For contractors the practical move is to stop treating incentives as a footnote at the end of the proposal. If the federal credit is gone, the rebate research you do on the customer’s behalf becomes a differentiator rather than an afterthought.

    Methodology

    Credit terms and dates are taken from the IRS page for the Energy Efficient Home Improvement Credit. Price context uses BLS producer price index series PCU333415333415 for HVAC equipment manufacturing and CUUR0000SA0 for consumer prices, each indexed to its 2019 annual average.

    Limitations

    • This is general information, not tax advice. Individual eligibility depends on circumstances a publication cannot see. Confirm with a tax professional.
    • We do not list state or utility programmes because they change frequently and vary by utility. Any list we published would be wrong somewhere within weeks.
    • The $2,000 figure is the maximum annual credit for qualifying heat pumps, not a guaranteed amount.

    Frequently asked questions

    Is there a federal heat pump tax credit in 2026?

    No. The Section 25C credit applies to property placed in service before December 31, 2025.

    I bought the equipment in 2025 but it was installed in 2026. Do I qualify?

    No. Eligibility runs on the date the property was placed in service, which is the installation, not the purchase.

    I installed in 2025 but have not filed yet. Can I still claim it?

    Yes. A system placed in service by the deadline can be claimed on your 2025 return. For 2025 the IRS also requires a Qualified Manufacturer Identification Number to be reported.

    Are rebates gone too?

    No. State and utility rebates are separate from the federal credit and are unaffected by its expiry.

    Sources

    1. Internal Revenue Service, Energy Efficient Home Improvement Credit, Section 25C.
    2. US Bureau of Labor Statistics, Producer Price Index by Industry, series PCU333415333415, and Consumer Price Index for All Urban Consumers, series CUUR0000SA0, retrieved via the BLS Public Data API v2.

    The HVAC Brief is an independent trade publication. Nothing here is tax advice. Corrections welcome.

  • Can You Still Install R-410A in 2026? What the Rule Actually Says

    Can You Still Install R-410A in 2026? What the Rule Actually Says

    Last reviewed: September 2026 · By the HVAC Brief Editorial Team · Our sourcing and editorial standards

    The short answer

    Yes. Under federal rules you can still install R-410A equipment in 2026, as long as every component was manufactured or imported before January 1, 2025. There is currently no federal end date on that inventory. What you cannot do is build or import new R-410A residential equipment.

    Much of the guidance published on this topic is out of date. It describes a January 1, 2026 installation cutoff that EPA has since removed.

    This is the question we get asked more than any other, and it is the one the trade press has handled worst. The rules changed twice, and a large amount of published advice still describes the first version. Here is what the regulation says today, quoted directly.

    What the rule prohibits

    Under 40 CFR 84.54(a)(1), effective January 1, 2025, no person may manufacture or import self-contained residential and light commercial air conditioning and heat pump products that use a refrigerant with a global warming potential of 700 or greater. R-410A has a GWP of 2,088, so it is out for new production. That part has not changed and is not in dispute.

    The installation question is separate, and it is where the confusion lives. The original rule paired the manufacturing ban with a cutoff on installing existing stock.

    What EPA changed in 2026

    On May 26, 2026, EPA published a final rule reconsidering parts of the Technology Transitions program. In the agency’s own words, the rule “allows the inventory of residential and light commercial air conditioning and heat pump equipment that was manufactured in the United States or imported into the United States before January 1, 2025, to continue to be installed.”

    That rule is 91 FR 31284, RIN 2060-AW39, docket EPA-HQ-OAR-2025-0005, effective July 27, 2026. The current text of 40 CFR 84.54(c)(1) now carries the sell-through with no expiration date attached.

    What this means on a job

    Pre-2025 R-410A inventory is a legitimate thing to sell again rather than a compliance liability. Distributors are still moving it and it is usually cheaper than the A2L equivalent. The catch is not federal legality, it is the refrigerant’s long-term service cost and your state’s own rules.

    The full picture, by equipment type

    Equipment Federal status in 2026
    R-410A residential split systems, all components built before Jan 1, 2025 May continue to be installed. No federal end date currently set.
    New R-410A residential or light commercial equipment Cannot be manufactured or imported since Jan 1, 2025.
    Existing R-410A systems already in service Legal to operate and service. Service refrigerant remains legal to produce and sell.
    Variable refrigerant flow, GWP 700 or greater Restricted from Jan 1, 2026. Installable before Jan 1, 2027 where all components were built or imported before Jan 1, 2026, and before Jan 1, 2028 where a building permit issued prior to Oct 5, 2023 specifies the restricted refrigerant.

    Where this can still catch you out

    The federal sell-through is not the last word. Several states run their own hydrofluorocarbon programs that can be stricter than the federal rule, and New York’s 6 NYCRR Part 494 is the one most likely to surprise a contractor working near a state line. Reporting on the precise New York dates has been inconsistent enough that we will not restate a specific deadline here. Confirm the current text with the state agency or your distributor before you sell a job that depends on it.

    The second thing to get in writing is the refrigerant’s future. R-410A is being phased down under the AIM Act, which means service refrigerant will get progressively more expensive across the life of the system. On a unit a homeowner expects to keep fifteen years, that is a real cost. Tell them before they find out in year six.

    Methodology

    Regulatory text is quoted from the current Code of Federal Regulations at 40 CFR 84.54, retrieved from the electronic CFR. The 2026 rule change is quoted from the Federal Register summary for document 2026-10387, citation 91 FR 31284. We quote the regulation directly rather than paraphrasing because paraphrase is how the January 2026 cutoff myth spread in the first place.

    Limitations

    • This covers federal rules only. State and local rules can be stricter and change independently.
    • We do not state New York’s specific dates because available secondary reporting conflicts and we could not verify a single authoritative date from the state’s own text.
    • Nothing here is legal advice. Confirm before you sell a job that depends on it.

    Frequently asked questions

    Is it illegal to install R-410A in 2026?

    Not under federal rules, provided every component of the system was manufactured or imported before January 1, 2025. EPA’s final rule at 91 FR 31284 explicitly allows that inventory to continue to be installed. Some states impose stricter limits.

    Was there not a January 1, 2026 deadline?

    There was, in the original rule. EPA removed it in a final rule published May 26, 2026 and effective July 27, 2026. Guidance still describing that cutoff is out of date.

    Can I still get refrigerant to service an existing R-410A system?

    Yes. Existing systems are legal to operate and service, and service refrigerant remains legal to produce and sell. It is being phased down over time, so expect the cost to rise.

    What about VRF systems?

    VRF has its own schedule. Restrictions took effect January 1, 2026, with installation allowed before January 1, 2027 where components were built or imported before January 1, 2026, extending to January 1, 2028 where a building permit issued before October 5, 2023 specifies the refrigerant.

    Sources

    1. 40 CFR 84.54, Restrictions on the use of hydrofluorocarbons, current text via eCFR.
    2. EPA, “Phasedown of Hydrofluorocarbons: Reconsideration of Certain Regulatory Requirements Promulgated Under the Technology Transitions Provisions of the American Innovation and Manufacturing Act of 2020,” final rule, 91 FR 31284, published May 26, 2026, effective July 27, 2026, RIN 2060-AW39, docket EPA-HQ-OAR-2025-0005.
    3. New York State Department of Environmental Conservation, 6 NYCRR Part 494, Hydrofluorocarbon Standards and Reporting.

    The HVAC Brief is an independent trade publication. We do not sell equipment or take manufacturer advertising. Corrections: if you find an error, tell us and we will fix it and note the change.

  • HVAC Prices in 2026: The Data Behind the Sticker Shock

    HVAC Prices in 2026: The Data Behind the Sticker Shock

    The short answer

    HVAC equipment prices have risen 60% since 2019, roughly twice the 31% rise in general consumer prices. That is the reason a replacement quote that read $6,000 to $8,000 a decade ago now commonly reads five figures. The gap is not local, and it is not your contractor’s margin: it is visible in federal producer price data for the factories that build the equipment.

    Most of the increase happened before the refrigerant changeover. Equipment prices were close to flat through 2024 (+1.4%), then stepped up 3.9% between March and July 2025 as refrigerant surcharges moved through the supply chain, and have kept climbing since.

    Separately, two rule changes matter in 2026: the federal 25C tax credit that paid up to $2,000 toward a heat pump expired for anything placed in service after December 31, 2025, and EPA has removed the installation deadline for R-410A equipment built before January 1, 2025.

    This page tracks what HVAC equipment actually costs to buy at the factory gate, using the Bureau of Labor Statistics producer price index for air conditioning and heating equipment manufacturing. We update it as new BLS data is released. Everything below is sourced to primary federal data or to the Code of Federal Regulations, and the underlying series are named so you can reproduce every number.

    +60%HVAC equipment producer prices, 2019 to July 2026
    +31%All consumer prices over the same period
    +22%Real increase after adjusting for general inflation
    +40.2%Average hourly earnings, HVAC and plumbing contractors

    The index: equipment prices against everything else

    The cleanest way to see what happened is to index HVAC equipment producer prices and consumer prices to the same starting point. Set 2019 equal to 100 and the divergence is unmistakable. General prices rose about 31%. Equipment prices rose about 60%.

    HVAC equipment prices vs general inflation, 2019 = 10010011012013014015016020192020202120222023202420252026HVAC equipment158 (2026 avg)All consumer prices130 (2026 avg)Index, 2019 = 100
    HVAC equipment producer price index (BLS series PCU333415333415, air conditioning, warm air heating and commercial refrigeration equipment manufacturing) against the consumer price index for all urban consumers (CUUR0000SA0). Both indexed to their 2019 annual average. 2026 points average the months published so far: equipment prices through August, consumer prices through July. Analysis by The HVAC Brief.

    Stated plainly: after stripping out ordinary inflation, HVAC equipment costs about 22% more in real terms than it did in 2019. That is the part homeowners feel as unfairness, and it is real. It is also the part contractors cannot control, because it is priced upstream of them.

    When the increase actually happened

    The common story is that the 2025 refrigerant rule caused HVAC prices to spike. The monthly data supports a more specific version of that: the rule itself was not the trigger, and the increase arrived roughly three months late.

    Monthly HVAC equipment PPI, showing the 2025 refrigerant transition step-up2903003103203302024-01: 293.12024-02: 296.42024-03: 295.62024-04: 299.02024-05: 299.42024-06: 298.62024-07: 298.62024-08: 301.92024-09: 299.52024-10: 298.82024-11: 297.62024-12: 297.12025-01: 298.02025-02: 300.12025-03: 299.62025-04: 304.02025-05: 308.22025-06: 311.82025-07: 311.32025-08: 312.62025-09: 309.82025-10: 312.02025-11: 312.32025-12: 311.92026-01: 313.02026-02: 316.82026-03: 319.52026-04: 320.42026-05: 320.62026-06: 321.02026-07: 324.02026-08: 324.82024-012024-072025-012025-072026-012026-07refrigerant surcharges pass throughPPI, NAICS 333415 (not seasonally adjusted)
    Monthly producer price index for HVAC equipment manufacturing, January 2024 through August 2026. Highlighted bars mark April to July 2025. Source: BLS series PCU333415333415, not seasonally adjusted.

    Through all of 2024, equipment prices moved +1.4%. The EPA rule restricting high global warming potential refrigerants took effect on January 1, 2025, and for the first quarter of 2025 prices barely moved. The step up came between March and July 2025, a 3.9% rise in four months, which lines up with refrigerant producer surcharges reaching distributors rather than with the regulation’s effective date. From the month before the rule took effect through July 2026, equipment prices are up 9.0%.

    Why this distinction matters

    If you are a contractor being told the refrigerant rule doubled your costs, the federal data does not support that. The rule contributed a step change of several percent. The larger share of the 60% increase accumulated between 2021 and 2023, before A2L refrigerants entered the picture at all. Anyone selling you a strategy built on the refrigerant transition alone is solving the smaller problem.

    What is driving the increase

    Driver What the evidence shows Confidence
    Equipment costs Producer prices for HVAC equipment manufacturing up 60% since 2019, versus 31% for consumer prices generally. This is the dominant, directly measured driver. High, primary federal data
    Labor Average hourly earnings for plumbing, heating and AC contractor employees rose from $30.39 in 2019 to $42.61 in July 2026, up 40.2%. Real but smaller than equipment, and it outpaced inflation only modestly. High, primary federal data
    Refrigerant transition Visible as a 3.9% step between March and July 2025, plus ongoing A2L equipment premiums. Material but not the main event. Moderate, inferred from timing
    Loss of the 25C credit Not a price increase, but a real out-of-pocket increase of up to $2,000 on qualifying heat pumps installed from January 1, 2026. High, statutory
    Tariffs and materials Widely cited in trade press as a contributor. We have not been able to isolate a tariff-specific effect in the federal series, so we do not quantify it here. Low, not independently verified

    The headcount side is worth noting because it cuts against a common claim. Employment among plumbing, heating and air conditioning contractors rose from about 1,141,000 in 2019 to about 1,355,400 in July 2026, an increase of 18.8%. The trade added workers. A pure labor shortage story does not fit a workforce that grew by roughly a fifth.

    What you can still install in 2026

    This is the most misreported topic in the trade right now, and a large amount of published guidance is out of date. Here is what the regulation currently says.

    Under 40 CFR 84.54(a)(1), effective January 1, 2025, no one may manufacture or import self-contained residential and light commercial air conditioning and heat pump products using a refrigerant with a global warming potential of 700 or greater. R-410A has a GWP of 2,088 and is therefore out for new production.

    The installation question is separate. The original rule paired the manufacturing ban with an installation cutoff. On May 26, 2026, EPA published a final rule (91 FR 31284, RIN 2060-AW39, docket EPA-HQ-OAR-2025-0005, effective July 27, 2026) that, in EPA’s own words, “allows the inventory of residential and light commercial air conditioning and heat pump equipment that was manufactured in the United States or imported into the United States before January 1, 2025, to continue to be installed.”

    Equipment Federal status in 2026
    R-410A residential split systems, components built before Jan 1, 2025 May continue to be installed. No federal end date currently set.
    New R-410A residential or light commercial equipment Cannot be manufactured or imported as of Jan 1, 2025.
    Existing R-410A systems in service Legal to operate and service. Service refrigerant remains legal to produce and sell.
    Variable refrigerant flow (VRF), GWP 700 or greater Restricted from Jan 1, 2026. Installable before Jan 1, 2027 where all components were built or imported before Jan 1, 2026, and before Jan 1, 2028 where a building permit issued prior to Oct 5, 2023 specifies the restricted refrigerant.
    Check your state before you rely on this

    The federal sell-through is not the whole picture. Several states run their own HFC programs that can be stricter than the federal rule, and New York’s 6 NYCRR Part 494 is the one most likely to catch contractors out. Reporting on the precise New York dates has been inconsistent, so confirm the current text with the state agency or your distributor rather than trusting a summary, including this one, for a job you are about to sell.

    If you are a homeowner

    Should you wait for prices to come down?

    Nothing in the data suggests a decline. Equipment prices rose in 21 of the 31 month-over-month comparisons since January 2024, and the most recent reading, August 2026, is the highest in the series going back to 2019. Waiting has reliably cost money since 2021. If your system is functioning, waiting is still reasonable. If it is failing, waiting is a bet the data does not support.

    Is the tax credit really gone?

    For federal 25C purposes, yes. The IRS states the credit applies to qualifying property placed in service before December 31, 2025. Installation date controls, not purchase date, so equipment bought in late 2025 and installed in 2026 does not qualify. State and utility rebates are unaffected by this and are often worth more than people assume, so check your utility before assuming there is no incentive.

    Is a cheaper R-410A system still an option?

    Federally, yes, if the equipment was built before January 1, 2025 and your state allows it. Distributors are still moving that inventory and it is usually cheaper. The trade-off is that you are buying into a refrigerant that is being phased down, which will make service refrigerant progressively more expensive over the system’s life. For a system you expect to keep 15 years, that is a real cost. For a rental you plan to sell in three, it may not be.

    How do you tell a fair quote from a padded one?

    Ask the contractor to separate equipment cost from labor on the proposal. Equipment is the line that moved, and a contractor who can show you the invoice is usually the one not padding. A quote that is dramatically below the others in your market is more often a scope difference, for example reusing failing ductwork or skipping a load calculation, than a genuine bargain.

    If you are a contractor

    The number your customer is anchored to

    A homeowner who last replaced in 2016 or 2017 is anchored to that price. The producer price index gives you a defensible way to explain the gap without sounding defensive, because it is a federal series that has nothing to do with your business.

    “Before I show you the number, I want to explain what changed, because it is going to be higher than the last time you did this. The equipment I install is priced by the manufacturer, and federal producer price data shows that equipment has gone up about 60% since 2019 while general prices went up about 31%. That is not my markup, that is the factory. On top of that, the federal tax credit that would have taken up to $2,000 off this job expired at the end of last year. Here is what I can control, and here is where I can save you money.”

    Where the margin actually is

    If equipment is up 60% and your labor cost is up 40.2%, holding a fixed percentage markup on equipment has quietly inflated your equipment margin in dollar terms while your labor margin has compressed. Shops that have not re-cut their pricing model since 2019 are frequently winning on the box and losing on the truck. Price the labor line deliberately rather than letting it ride as a percentage of a number that tripled.

    The R-410A inventory question

    The federal installation deadline is gone, which means pre-2025 inventory is a legitimate offering again rather than a liability. Two cautions. First, confirm your state has not set its own rule. Second, put the refrigerant phasedown in writing when you sell it, because a customer who learns in year six that service refrigerant has become expensive will remember what you did and did not tell them.

    Methodology

    Equipment prices are the Bureau of Labor Statistics producer price index for NAICS 333415, air conditioning, warm air heating and commercial and industrial refrigeration equipment manufacturing, series PCU333415333415, retrieved from the BLS public API v2. General consumer prices are CUUR0000SA0, the consumer price index for all urban consumers, all items, US city average. Labor figures are BLS Current Employment Statistics for NAICS 238220, plumbing, heating and air conditioning contractors: series CEU2023822003 for average hourly earnings of all employees and CEU2023822001 for all employees in thousands.

    Index values set each series to its own 2019 annual average, calculated as the mean of the twelve monthly observations. The real increase is the ratio of the two indexed series, which removes general inflation from the equipment figure. Where 2026 is shown as an annual point it is the average of the months available at publication: through August for equipment prices and July for consumer prices. Regulatory text is quoted from the current Code of Federal Regulations at 40 CFR 84.54 and from the Federal Register.

    Limitations

    • Producer prices measure what manufacturers charge, not what a homeowner pays installed. Installed prices include distributor margin, contractor labor, permits and local market conditions, none of which this series captures. The direction is reliable; the exact pass-through to a specific quote is not.
    • PCU333415333415 covers commercial and industrial refrigeration alongside residential HVAC, so it is broader than residential equipment alone.
    • The series is not seasonally adjusted, so month-to-month moves carry some seasonal noise. Comparisons here use multi-month spans to reduce that.
    • Attributing the March to July 2025 step up to refrigerant surcharges is an inference from timing, not a decomposition of the index. BLS does not publish that breakdown.
    • We do not quantify tariffs. Trade press attributes part of the increase to them and that may well be correct, but we could not isolate it in the federal data and will not publish a number we cannot source.

    Frequently asked questions

    How much has HVAC equipment actually gone up?

    Producer prices for HVAC equipment manufacturing rose 60% between the 2019 annual average and July 2026, according to BLS series PCU333415333415. Consumer prices generally rose 31% over the same period, so equipment has risen roughly twice as fast as inflation, or about 22% in real terms.

    Did the refrigerant change cause HVAC prices to spike?

    It contributed, but it is not the main cause. Equipment prices moved +1.4% across all of 2024 and then rose 3.9% between March and July 2025, which is a step change rather than a spike, and it arrived about three months after the rule took effect. Most of the cumulative increase since 2019 accumulated before A2L refrigerants entered the market.

    Can R-410A systems still be installed in 2026?

    Under federal rules, yes, if all components were manufactured or imported before January 1, 2025. EPA’s final rule published May 26, 2026 (91 FR 31284) allows that inventory to continue to be installed and removed the previous installation cutoff. New R-410A equipment cannot be manufactured or imported. Some states impose stricter rules, so confirm your state before relying on the federal position.

    Is there still a federal tax credit for a heat pump in 2026?

    No. The Section 25C Energy Efficient Home Improvement Credit, worth up to $2,000 for a qualifying heat pump, applies to property placed in service before December 31, 2025. Installation date controls rather than purchase date. State and utility rebates are separate and may still apply.

    Will HVAC prices come down?

    There is no sign of it in the data. August 2026 is the highest reading in the series and prices have risen in most months since early 2025. We take no position on forecasts, but nothing in the published federal data points to a decline.

    Are contractors marking up more than they used to?

    The measured drivers sit upstream of contractors. Equipment producer prices are up 60% and contractor hourly earnings are up 40.2%, both since 2019. Individual pricing varies, which is why comparing itemized quotes that separate equipment from labor is more useful than comparing totals.

    Cite this analysis

    The HVAC Brief. “HVAC Prices in 2026: The Data Behind the Sticker Shock.” Analysis of BLS producer price index series PCU333415333415 and consumer price index CUUR0000SA0. Published August 19, 2026. https://thehvacbrief.com/hvac-prices-2026/

    Journalists and researchers may reproduce the charts and figures with attribution to The HVAC Brief. Underlying data is public and reproducible from the BLS public API using the series identifiers named in the methodology.

    Sources

    1. US Bureau of Labor Statistics, Producer Price Index by Industry: Air Conditioning, Warm Air Heating, and Commercial and Industrial Refrigeration Equipment Manufacturing, series PCU333415333415, monthly, January 2019 to August 2026. Retrieved via the BLS Public Data API v2, api.bls.gov.
    2. US Bureau of Labor Statistics, Consumer Price Index for All Urban Consumers, All Items, US City Average, series CUUR0000SA0.
    3. US Bureau of Labor Statistics, Current Employment Statistics, Plumbing, Heating and Air-Conditioning Contractors (NAICS 238220), series CEU2023822003 and CEU2023822001.
    4. US Environmental Protection Agency, 40 CFR 84.54, Restrictions on the use of hydrofluorocarbons, current text via eCFR.
    5. US Environmental Protection Agency, “Phasedown of Hydrofluorocarbons: Reconsideration of Certain Regulatory Requirements Promulgated Under the Technology Transitions Provisions of the American Innovation and Manufacturing Act of 2020,” final rule, 91 FR 31284, published May 26, 2026, effective July 27, 2026, RIN 2060-AW39, docket EPA-HQ-OAR-2025-0005.
    6. Internal Revenue Service, Energy Efficient Home Improvement Credit, Section 25C.
    7. New York State Department of Environmental Conservation, 6 NYCRR Part 494, Hydrofluorocarbon Standards and Reporting.

    The HVAC Brief is an independent trade publication. We do not sell equipment, take manufacturer advertising, or accept payment for placement in our research. Corrections: if you find an error in this analysis, tell us and we will fix it and note the change.