New York is taking a major step to cut building emissions. For new construction, the state now requires most low-rise buildings to be all-electric starting with permit applications filed on or after December 31, 2025. All remaining new buildings will follow in 2029. The rule bars installing fossil-fuel equipment — gas boilers, furnaces, water heaters, stoves, and dryers — and associated fuel piping in new buildings, with limited exemptions such as emergency backup systems or certain industrial uses.
New York City has already moved ahead of the state. Local Law 154 phases in all-electric requirements for new buildings on an earlier schedule, with many smaller residential projects already subject to the rule as of January 2024, and larger buildings joining in July 2027. The state law doesn’t replace the city’s timeline, but it confirms the same direction: New York is heading toward an all-electric future.
What this means for boards and residents
- Changing expectations. Induction cooking and electric heat pumps will become standard in new developments. That shift will influence buyer preferences and residents’ expectations for building amenities.
- Pressure on retrofits. The law applies only to new buildings, and existing condos and co-ops are not being forced to remove gas systems. Still, combined with Local Law 97, the momentum toward electrification will affect how boards approach long-term capital planning.
- Costs and operations. Electricity can be more expensive per unit than gas, but modern heat pumps and induction systems are highly efficient. Over time, operating costs may balance out, but boards will need to plan carefully for upfront investments when systems reach the end of their useful life.
Why pay attention now
Even if your building isn’t covered by the new rules, this mandate is a signal of where the market and policy are headed.
- Market dynamics: Buyers will start to see all-electric systems as the norm. Older buildings that invest in efficient, modern systems will stand out.
- Policy trajectory: The state finalized its implementation in July 2025, and more refinements are expected. The trend is toward more electrification, not less.
- Resale value: Buildings that plan for efficient replacements now are better positioned to protect property values as codes and buyer expectations evolve.
Preparing your building for an all-electric future
Boards don’t need to panic, but they do need to prepare.
- Map your systems: Know the age and condition of boilers, hot water heaters, risers, and electrical capacity.
- Plan replacements: Don’t rip out working systems. Instead, align electrification with natural end-of-life timelines.
- Budget early: Include upgrades in your capital plan and track available incentives or financing options.
- Educate residents: Share information about induction cooking and heat pumps so owners understand the benefits.
- Work with experts: Engineers and consultants can model your building’s path forward, factoring in both Local Law 97 and electrification goals.
The takeaway
The state mandate confirms what many boards already suspected: New York’s buildings are moving toward electrification. For low-rise new construction, that starts in 2026. For larger projects, 2029. And in New York City, the timeline is already faster under Local Law 154.
Existing condos and co-ops don’t have to switch today. But boards that start planning for system replacements now — tying capital planning to electrification goals — will protect resident comfort, manage costs, and keep their buildings competitive in a changing market.
