The cheapest way to heat a home in 59 cities
At current energy prices, a cold-climate heat pump is the cheapest way to heat a typical home in 37 of 59 cities we model. Natural gas still wins where gas is cheap and electricity is expensive, such as the Prairies, Ontario and the Upper Midwest.
Heating oil is the most expensive option almost everywhere this winter. US residential heating oil hit about $6.04/gallon in early October 2026, up from $3.44 a year earlier.
Canada (CAD per year)
| City | Cheapest system | Heat pump/yr | Main fuel/yr | Heat pump vs fuel |
|---|---|---|---|---|
| St. John's, NL | Heat pump | $1,468 | $3,563 (propane) | −$2,095 |
| Montreal, QC | Heat pump | $774 | $1,525 (natural gas) | −$751 |
| Moncton, NB | Heat pump | $1,638 | $2,366 (natural gas) | −$728 |
| Halifax, NS | Heat pump | $1,763 | $2,382 (natural gas) | −$618 |
| Vancouver, BC | Heat pump | $666 | $924 (natural gas) | −$259 |
| Toronto, ON | Natural gas furnace | $1,070 | $945 (natural gas) | +$125 |
| Ottawa, ON | Natural gas furnace | $1,363 | $1,106 (natural gas) | +$258 |
| Winnipeg, MB | Natural gas furnace | $1,485 | $935 (natural gas) | +$550 |
| Saskatoon, SK | Natural gas furnace | $2,526 | $1,182 (natural gas) | +$1,344 |
| Calgary, AB | Natural gas furnace | $2,408 | $1,032 (natural gas) | +$1,376 |
| Edmonton, AB | Natural gas furnace | $2,500 | $1,052 (natural gas) | +$1,447 |
United States (USD per year)
| City | Cheapest system | Heat pump/yr | Main fuel/yr | Heat pump vs fuel |
|---|---|---|---|---|
| Kansas City, MO | Heat pump | $697 | $1,086 (natural gas) | −$389 |
| St. Louis, MO | Heat pump | $598 | $976 (natural gas) | −$378 |
| Jacksonville, FL | Heat pump | $186 | $553 (natural gas) | −$368 |
| Atlanta, GA | Heat pump | $344 | $675 (natural gas) | −$331 |
| Charlotte, NC | Heat pump | $420 | $714 (natural gas) | −$294 |
| Portland, OR | Heat pump | $628 | $908 (natural gas) | −$280 |
| Seattle, WA | Heat pump | $565 | $834 (natural gas) | −$269 |
| Oklahoma City, OK | Heat pump | $426 | $684 (natural gas) | −$258 |
| Virginia Beach, VA | Heat pump | $464 | $718 (natural gas) | −$254 |
| Tucson, AZ | Heat pump | $215 | $461 (natural gas) | −$246 |
| El Paso, TX | Heat pump | $322 | $567 (natural gas) | −$246 |
| New Orleans, LA | Heat pump | $151 | $395 (natural gas) | −$244 |
| Las Vegas, NV | Heat pump | $301 | $540 (natural gas) | −$240 |
| Louisville, KY | Heat pump | $558 | $795 (natural gas) | −$237 |
| Tampa, FL | Heat pump | $86 | $321 (natural gas) | −$235 |
| Dallas, TX | Heat pump | $277 | $512 (natural gas) | −$235 |
| Salt Lake City, UT | Heat pump | $708 | $942 (natural gas) | −$233 |
| San Antonio, TX | Heat pump | $208 | $423 (natural gas) | −$216 |
| Austin, TX | Heat pump | $200 | $413 (natural gas) | −$213 |
| Houston, TX | Heat pump | $196 | $409 (natural gas) | −$213 |
| Phoenix, AZ | Heat pump | $142 | $334 (natural gas) | −$192 |
| Washington, DC | Heat pump | $712 | $877 (natural gas) | −$165 |
| Nashville, TN | Heat pump | $439 | $586 (natural gas) | −$147 |
| Wichita, KS | Heat pump | $666 | $810 (natural gas) | −$144 |
| Baltimore, MD | Heat pump | $811 | $941 (natural gas) | −$130 |
| Memphis, TN | Heat pump | $355 | $484 (natural gas) | −$129 |
| Omaha, NE | Heat pump | $779 | $863 (natural gas) | −$84 |
| Columbus, OH | Heat pump | $875 | $937 (natural gas) | −$62 |
| Los Angeles, CA | Heat pump | $428 | $484 (natural gas) | −$56 |
| San Diego, CA | Heat pump | $477 | $518 (natural gas) | −$41 |
| Boise, ID | Heat pump | $628 | $652 (natural gas) | −$24 |
| Philadelphia, PA | Heat pump | $842 | $844 (natural gas) | −$2 |
| Albuquerque, NM | Natural gas furnace | $576 | $567 (natural gas) | +$9 |
| San Jose, CA | Natural gas furnace | $688 | $655 (natural gas) | +$32 |
| Pittsburgh, PA | Natural gas furnace | $1,067 | $995 (natural gas) | +$72 |
| Fresno, CA | Natural gas furnace | $733 | $657 (natural gas) | +$76 |
| San Francisco, CA | Natural gas furnace | $853 | $771 (natural gas) | +$81 |
| Denver, CO | Natural gas furnace | $912 | $829 (natural gas) | +$83 |
| Sacramento, CA | Natural gas furnace | $822 | $733 (natural gas) | +$89 |
| Indianapolis, IN | Natural gas furnace | $835 | $713 (natural gas) | +$122 |
| Chicago, IL | Natural gas furnace | $965 | $841 (natural gas) | +$124 |
| New York City, NY | Natural gas furnace | $1,164 | $995 (natural gas) | +$169 |
| Boston, MA | Natural gas furnace | $1,706 | $1,462 (natural gas) | +$245 |
| Minneapolis, MN | Natural gas furnace | $1,381 | $1,027 (natural gas) | +$354 |
| Milwaukee, WI | Natural gas furnace | $1,287 | $902 (natural gas) | +$385 |
| Detroit, MI | Natural gas furnace | $1,265 | $866 (natural gas) | +$399 |
| Anchorage, AK | Natural gas furnace | $2,894 | $1,405 (natural gas) | +$1,490 |
| Fairbanks, AK | Natural gas furnace | $5,274 | $1,833 (natural gas) | +$3,440 |
2,000 sq ft home, average insulation, 95% gas furnace, cold-climate heat pump. "Main fuel" is natural gas where available, otherwise the cheaper of oil and propane. How we calculate.