Does a Tankless Water Heater Increase Home Value? Unveiling the Impact on Property Worth

does a tankless water heater increase home value

In today’s housing market, features such as wireless security systems and EnergyStar-rated HVAC units have transitioned from being mere upgrades to essential elements for buyers. The same applies to tankless water heaters.

Does a tankless water heater increase home value? When considering upgrades to your home, it’s worth exploring whether a tankless water heater is a sound investment that can boost your home’s marketability.

Unlike traditional tank water heaters and storage water heaters that continuously heat and reheat water in a large tank, tankless water heaters provide hot water on demand, heating it only as it is needed.

This efficient system can mean savings on your energy bills and more space in your utility closet.

Many homeowners find themselves pondering the impact of a tankless water heater on their property’s value.

With energy efficiency high on many buyers’ priority lists and the shift towards green living, installing a tankless water heater could not only provide immediate benefits in utility cost savings but also potentially increase your home’s resale value.

If you’re mulling over whether this addition is worth the initial installation cost, it’s important to weigh the benefits and consider the long-term return on investment.

Key Takeaways

  • Tankless water heaters provide hot water on demand and can save energy.
  • Tankless water heaters increase a home’s value due to their efficiency.
  • Evaluating the long-term benefits is crucial when considering an upgrade to a tankless water heater.

The Rising Popularity of Tankless Water Heaters

Tankless water heaters have seen a surge in popularity as more homeowners look for efficient and space-saving alternatives to traditional tank models. As you explore home improvement options, you might consider the benefits of these on-demand heaters.

Efficiency and Savings: You’ve likely heard about the reduced energy consumption tankless water heaters offer.

Indeed, models like the EcoSmart ECO 27 are designed to heat water only when you need it, which can lead to potential savings on your utility bills.

  • Instantaneous Hot Water: Another attractive feature is the provision of hot water on demand—no more waiting for a storage tank to fill up and reheat. The Stiebel Eltron Tempra 36 Plus, for example, is known for its near-silent operation and consistent performance.

Space Efficiency: If you’re tight on space, tankless water heaters, like the compact options from Rinnai, provide a sleek solution, often the size of a suitcase, that can be installed on virtually any wall, freeing up usable floor space for other needs.

In terms of numbers, the trend is clear: tankless water heaters are on the rise. Recent market research shows that the demand for these units is steadily climbing, with projections indicating continued growth in the coming years.

Your decision to install a tankless system could align not only with an eco-friendly mindset but also with a savvy, long-term investment strategy for your home’s value.

Recommended Tankless Water Heater Models

When you’re exploring the best tankless water heater models to boost your home’s value, you want options that bring efficiency and reliability. Be sure to consider how much hot water your family requires as well.

Here’s a list tailored just for you:

  • EcoSmart ECO 27
  • Rheem 18kw Tankless Electric Water Heater
    • Price: Approximately $400 – $700
    • Benefits: Ideal for small to medium homes, and praised for its easy installation and compact design.
  • Stiebel Eltron DHC Trend Point-of-Use Electric Tankless Water Heaters
    • Price: About $150 – $300
    • Benefits: Great for single point-of-use with a reputation for durability and minimal maintenance required.
  • Rheem 13kw Tankless Electric Water Heater
    • Price: Roughly $280 – $500
    • Benefits: A strong contender for those looking to reduce energy consumption without sacrificing performance.

Each model offers a blend of benefits that can cater to your specific needs, from energy savings to space conservation. Remember to consider the size of your home and your hot water usage to find the perfect fit!

How Does A Tankless Water Heater Increase Home Value?

Installing a tankless water heater in your home could be a beneficial move if you’re considering future property value.

The key benefits that might intrigue a potential homebuyer include the unit’s energy efficiency, its expected longevity, and the potential for cost savings over time.

Comparative Market Analysis

When real estate professionals perform a Comparative Market Analysis (CMA), they look at how your home’s features stack up against others on the market.

Homes with energy-efficient features, like a tankless water heater, often tend to have a competitive edge. Such homes may attract buyers willing to pay a premium for features that promise lower utility bills and viable long-term savings.

For a closer look at the impact on home valuation due to energy-efficient upgrades, visit Do Tankless Water Heaters Add Value To A Home? Closer Look At 5 Reasons.

Perceived Value to Prospective Buyers

The advantages of a tankless water heater are not just in the numbers; they also resonate with what buyers feel about the home.

The perception of having a continuous supply of hot water and more available space (as tankless models are more compact) can be very appealing.

This form of perceived value might not always be reflected directly in the home’s price but can be a deciding factor for buyers who are choosing between similar properties.

For more insights into the buyer’s perspective, explore how tankless water heaters are viewed at Does A Tankless Water Heater Add Value To A Home?.

Case Studies: Real-Life Stories of Tankless Water Heater Installations

When you’re considering a tankless water heater, real estate cases can provide insightful information. Consider a suburban real estate agency’s study which found homes with tankless water heaters sold for an average of 4% more. This isn’t just a lone instance.

Home Upgrade Impact

  • Location: Midwest Suburb
  • Home Price Increase: 4.1%
  • Remarks: Homeowners experienced a modest increase in sale price with tankless installation.

Another instance involved the installation of a tankless system in an urban condo, where the owner observed a quicker sale time alongside a favorable price.

By investing an average of $2,254 on installation, the return on investment was attractive, especially in markets valuing energy efficiency.

Condo Sale Success

  • Location: Downtown City Area
  • Sale Time: Reduced by 15 days
  • Price Difference: 3.7% increase

Lastly, consider the story of a homeowner who received overwhelming positive feedback from potential buyers for having an energy-efficient and space-saving tankless water heater, characteristics which culminated in a competitive selling point during the property’s listing.

Buyer Attraction

  • Feature: Energy Efficiency
  • Homeowner Feedback: High interest level
  • Outcome: Multiple offers above asking price

Given that the value added varies by market preferences, it’s always a good move to understand your local real estate climate. Your potential for a higher selling price could be influenced by current trends and buyer priorities in your area.

Cost vs. Benefit Analysis

When you’re considering upgrading to a tankless water heater, it’s important to evaluate the initial costs against the long-term benefits, notably any increase in your home’s value.

Installation Costs

  • Tankless Water Heater: You might spend between $800 and $3,500 for the unit and installation.
  • Possible Upgrades: Additional costs could arise if you need to retrofit your home’s wiring or plumbing, potentially leading to higher labor costs.

Operational Savings

  • Energy Efficiency: This is a major selling point that can potentially lead to saving you on monthly utility bills.
  • Durability: Longer lifespan means costs might even out over time.

Home Value Increase

  • Tankless water heaters can be a desirable feature for home buyers, which might add value to your home. The modern convenience and efficiency are appealing features in today’s market.

Consider these factors:

  • Does the efficiency align with your energy goals?
  • Are you in an area where buyers prioritize eco-friendly features?

By carefully weighing these aspects, you’ll make an informed decision on whether the switch to tankless is a worthwhile investment. Keep in mind, the specific impact on home value can vary based on market preferences and regional trends.

FAQs For Potential Buyers

Are tankless water heaters more energy-efficient than traditional ones?

Yes! Your potential energy savings are significant as tankless water heaters are designed to be much more energy-efficient than traditional models because they only heat water on demand.

How do tankless water heaters affect my storage space?

With a tankless system, you’ll have extra storage space, as there’s no bulky tank to accommodate unlike a conventional water heater. This means more room in your utility area and a less cluttered home.

What should I expect in terms of lifespan for a tankless water heater?

A tankless water heater typically offers a longer lifespan of up to 20 years, which is considerably more than the 10-15 years expected from traditional water heaters. This longer lifespan can be a point of appeal for you as a buyer, suggesting fewer replacements over time.

Does installation complexity affect my home’s value?

While installation can be more complex for a tankless water heater, the increased value and energy savings can make it a worthy consideration in terms of your property’s overall value and appeal.

What about maintenance; are tankless water heaters hard to maintain?

Tankless water heaters generally require less maintenance than traditional ones. However, like any home appliance, routine inspections are recommended to ensure efficient operation.


When you’re exploring upgrades to enhance your home’s value, tankless water heaters are an investment worth considering.

A tankless water heater increases value of your home with its energy efficiency, often saving homeowners on utility bills with their on-demand heating capabilities. What’s more, you’ll love the added space and the luxury of an endless hot water supply.

If you’re pondering the resale benefits, remember that many potential buyers could be swayed by these modern systems, seeing them as a valuable long-term saving. The energy efficiency of a tankless water heater is a compelling feature, particularly for those keen on reducing their carbon footprint.

Your home’s value could see a positive impact from a tankless water heater, as highlighted by the fact that they are frequently appreciated in property assessments, especially in markets where sustainability and efficiency are high on the agenda.

Lastly, while the upfront cost may be higher than a traditional water heater, the long-term savings on energy costs and appeal can make them a wise choice.

As you weigh the pros and cons, think about how this modern amenity aligns with your goals and could make your home even more desirable in the competitive real estate market.


  • Edmund Yeo

    🌱 I'm passionate about sustainable living and renewable energy, and I'm thrilled to share my journey towards a greener, brighter future with you. Join me as I explore the latest innovations, eco-friendly lifestyle tips, and inspiring stories from the forefront of the green energy revolution. Note: This website uses affiliate links which may earn a commission for purchases made at no additional cost to you.

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