Oregon Homes to Save $1,700 Yearly With New Energy Code

New homes in Oregon are about to become much cheaper to live in, thanks to a smart update to the state's building code.

The Oregon Building Code Division just voted to require all newly built homes to include energy-efficient heat pumps instead of traditional air conditioning. An official analysis shows this single change will save homeowners an average of $125 every month, adding up to over $1,700 in annual savings.

The timing couldn't be better. Energy bills across Oregon have jumped about 50% since 2020, putting serious strain on family budgets. These new homes will offer relief from that financial pressure while delivering year-round comfort.

"The code update is an upgrade in both comfort and affordability," said Eleanor Ponomareff, president of the Talent City Council. Heat pumps work as both heating and cooling systems, making homes more resilient during extreme weather while using less energy.

Joshua Salinger, founder of Birdsmouth Design-Build and a longtime heat pump installer, has seen their benefits firsthand. "I've been installing heat pumps for years, and have seen how cost-effective they can be for both builders and homeowners," he said. The new code protects buyers from rising energy costs by ensuring proven technology becomes standard.

The change earned strong support across Oregon. The state's Department of Energy backed the update, along with 54 building professionals, elected officials, and climate organizations who submitted letters of support.

The Ripple Effect

This code puts Oregon alongside California and Washington in modernizing building standards. As heat pump technology continues improving, these efficient appliances offer growing benefits without the pollution of fossil fuel systems.

The code still allows natural gas for supplemental heating during peak demand periods, reducing strain on the electrical grid. But the primary heating comes from clean, efficient heat pumps that work smarter, not harder.

David Heslam of Earth Advantage called it "a smart, cost-effective step" that improves reliability and year-round comfort while strengthening housing affordability through lower operating costs.

Every Oregonian who moves into one of these newly built homes will benefit from lower bills and greater comfort for years to come.