This piece provides information on the expected cost to heat a home using natural gas. As shown below, this cost may vary due to a number of factors, including the size of the home, the efficiency of the natural gas system, the type of home, the location, and the geographical region.
In this report, we’ll break down the average cost to heat a home with natural gas based on:
- Annual Cost by Home Size per Square Foot
- Annual Cost By Efficiency of Natural Gas System
- Annual Cost By Home Type
- Estimated Average Cost by Geographic Region and Year
Annual Cost By Home Size Per Sq. Ft.
The table below breaks down the approximate annual cost to heat a home with natural gas, both overall and by square foot:
| Size of Home (Sq. Ft.) | Assumed Natural Gas Heat Efficiency | Cost Per (Sq. Ft.) | Estimated Annual Cost Range |
|---|---|---|---|
| Under 1,500 | 80% | $0.88 – $1.55 | $1,319 – $2,335 |
| 1,500 – 2,500 | 80% | $0.89 – $2.03 | $2,233 – $3,045 |
| Over 2,500 | 80% | $1.13 – $1.42 | $2,842 – $3,553+ |
Takeaways:
- Larger homes will cost more to heat, as they will require more fuel.
Annual Cost By Efficiency of Natural Gas System
The efficiency level of a natural gas system can affect the cost of heating a home. The following table shows the approximate changes in cost based on a system’s efficiency level.
| Efficiency of Natural Gas Heater | Assumed Coverage Area (Sq Ft) | Annual Cost Per Sq. Ft. | Estimated Annual Cost Range |
|---|---|---|---|
| 70% | 2,000 | $1.52 – $1.57 | $3,045 – $3,147 |
| 80% | 2,000 | $1.32 – $1.37 | $2,639 – $2,741 |
| 90% | 2,000 | $1.17 – $1.22 | $2,335 – $2,436 |
| 98% | 2,000 | $1.12 – $1.17 | $2,233 – $2,335 |
Takeaways:
- Most natural gas systems have a maximum efficiency of 98%.
- A system’s percentage indicates how much of the gas is converted to heat, while the remaining percentage indicates how much is lost.
- Maintaining an efficient system by regularly changing its filters and periodically scheduling maintenance can help lower the cost of natural gas heating.
Annual Cost By Home Type
Additionally, the structure of your home can affect your natural gas costs, as differently shaped buildings require different amounts of natural gas. Below is a breakdown of how the price may vary between different home types
| Home Type | Assumed Coverage Area (Sq Ft) | Annual Cost Per Sq. Ft. | Estimated Annual Cost Range |
|---|---|---|---|
| Single-Story | 2,000 | $1.27 – $1.37 | $2,538 – $2,740 |
| Split-Level | 2,000 | $1.37 – $1.47 | $2,741 – $2,944 |
| Multi-Level | 2,000 | $1.41 – $1.50 | $2,791 – $2,994 |
Takeaways:
- Single-story homes are generally less expensive to heat than homes with multiple levels, but circumstances may vary.
- Consulting with a professional HVAC specialist will help determine the needs of your home.
Estimated Average Cost by Geographic Region and Year
The cost of natural gas heating varies across regions of the United States due to various factors, such as climate, local taxation, and variations in supply and distribution. The following table breaks down the average cost of gas for a natural gas customer over the past four years.
| Region (United States) | 2022 | 2023 | 2024 | 2025 |
|---|---|---|---|---|
| New England | $1,383.90 | $1,423.10 | $1,288.70 | $1,308.03 |
| Middle Atlantic | $1,060.50 | $1,094.80 | $947.80 | $962.02 |
| East North Central | $875.70 | $833.70 | $719.60 | $730.39 |
| West North Central | $916.30 | $938.70 | $826.70 | $839.10 |
| South Atlantic | $1,197.70 | $1,287.30 | $1,098.30 | $1,114.77 |
| East South Central | $994.00 | $1,019.20 | $875.70 | $888.84 |
| West South Central | $1,137.50 | $1,190.00 | $969.50 | $984.04 |
| Mountain | $865.20 | $930.30 | $924.00 | $938.00 |
| Pacific | $1,269.80 | $1,311.80 | $1,138.90 | $1,155.98 |
If you are interested in finding more information about natural gas heating and are in the Detroit Metro Area, please feel free to contact us.
