Remember: Target New Construction

In 2022, 1.66 million permits for new, privately-owned residential buildings were authorized in the U.S., the majority of which were for single-family homes. Home construction, of course, is not equally distributed across the country. In fact, last year it ranged from a high of 263,054 permits in Texas to a low of a 578 in Alaska. Home building was especially robust in the South and West.

New construction, particularly homes situated beyond the reach of natural gas systems, offers ample opportunities to acquire new customers and grow gallons. And it’s important for LP marketers to take note of requested building permits in their area, as it’s better to engage with developers and builders before final decisions on energy have been made. Newly built homes open up additional gallon growth opportunities, including space and water heating, clothes drying, fireplaces, cooking, pool heating and generator applications. Given that space heating gallons are tied, in part, to heating degree days, engaging customers on applications that are less weather dependent can compensate for warmer winters.

Unsurprisingly, new construction is quite strong in states that are attracting new residents. And, critically, of the 20 states that grew faster than the national average between 2010-2020, 11 of them now have energy choice laws on the books, thereby ensuring that propane remains an energy option for these new builds.

For additional information on the benefits of building a home with propane, visit the Residential Construction page on PERC’s website. For more information, contact NPGA’s Director of State Affairs, Jacob Peterson.