Marketer Spotlight

MARKET OVERVIEW

US housing unit starts have been on a steady rise since 2011 and are expected to grow through 2025, however, unit starts are still short of pre-recession numbers. As the residential housing market continues to grow, the overall number of propane customers is likely to increase from now to 2025. However, long-term improvements in efficiency will offset customer growth and lead to a slow decline of total residential propane sales on a volume basis.One of the critical development opportunities in the residential sector continues to be the conversion of heating oil space heating customers in the Northeast. Tankless water heating is still a strong opportunity for propane to expand in the residential market.

Propane is well positioned to be part of the growth in ZNE. Part of measuring zero energy performance includes the “upstream” efficiencies and losses of various energy sources. That might include the energy needed to extract, process, and distribute fuels like propane and natural gas, or the energy associated with using those fuels for power generation.

Higher-end manufactured homes could be a source of residential sector propane demand growth. Manufactured homes are poised for growth, mainly as prices for site-built homes continue to rise, and there is a low stock of pre-owned residences available to buyers. Manufactured housing shipments have been on the rise, increasing 8% on average since 2014; however, it remains around 16% of current new housing sales. In 2022, close to 112,000 manufactured homes were shipped compared to less than 64,000 in 2014.