The cost of running air conditioning in the summer heat isn’t the only reason that home owners and renters might be experiencing higher-than-usual electric bills. According to the U.S. Energy Information Administration, residential electricity prices in America are surging, with costs up 4.3% in 2025 and projected for another 4.1% bump in 2026.

One reason is artificial intelligence (AI) data centers, which are rapidly increasing demand for electric power. Another is an increasingly electrified economy. But one more reason might be state and local bans on using natural gas to power newly constructed homes.

When natural gas is eliminated as an option, electricity is used to heat indoor space, heat water, and cook indoors. About half of U.S. states (24) have some type of preemption law to prevent a natural gas ban — and that number may continue to grow. For example, in Michigan, the Local Government Committee is considering a proposed bill that would prevent local preemption.

Other states have actively pursued gas bans:

• New York just passed a statewide ban that would impact new buildings up to seven stories starting January 2026 and new buildings of more than seven stories in January 2029.
• Washington state passed a gas ban in 2024. Voters supported weakening the gas ban after it was introduced on the ballot. But a King County Superior Court judge invalidated the ballot measure because it deals with multiple unrelated subjects. The decision is being appealed to the Washington State Supreme Court.
• The Pennsylvania Public Utility Commission voted to classify landlords as gas pipeline operators and regulate them.

Local governments have also been exploring legislation against the use of natural gas:

• Local governments in California, Colorado and Massachusetts are trying to pass gas bans. This includes an attempt by the city of Berkeley in California to place a ban on gas, which was passed then struck down by the 9th U.S. Circuit Court in 2024.
• Montgomery County, Md., placed a ban on gas on new home construction starting in 2027.

At the federal level, the U.S. House of Representatives introduced the Energy Choice Act (H. R. 3699) in June 2025, which would prevent gas bans — among other energy choice provisions — across the country.

If electricity prices continue to rise as projected, it may increase costs not only for builders and remodelers, but also for building occupants, especially in all-electric homes. This would further exacerbate the housing affordability crisis in America.