Simply put, hot water is a necessary. However, most old homes and rentals will use a hot water tank. This will be considered as obsolete, and will no longer be an option. Instead, the owner will have an electric tankless hot water system in place which will generate hot water on demand, and only on demand. This means that the heater is using more electricity, but only during the time that hot water is called for. Any other time, there is no hot water being generated, and no tank to keep hot.
The reason for electric is that under NSC requirements, there will be no gas line, or service as this utility will be phased out. Electricity is simply a better choice.