Part 3: How Much Does a Tank Water Heater Cost in 2024

A tank water heater, also known as a “storage” water heater, heats and holds hot water in its tank until it’s ready to be used. So, if you’re in the market for a new tank water heater, there’s probably one question and one question alone that is looming over your head. How much does a tank water heater cost?  

Naturally, this is a valid question! Of course, you want to know what to expect and what to plan for. However, it’s important to remember that different factors will impact the cost of the right tank water heater (or storage water heater) for your family. Considering the following factors, you can find the perfect fit for your home and get a general idea of what to expect cost-wise. 

Factors That May Impact the Cost of a Tank Water Heater 

• Type: You can choose from a gas or electric tank water heater. Just keep in mind that if you are converting from an electric to gas tank water heater, the costs associated with converting your tank type can impact your overall cost due to the installation process and the necessary required connections and hookups. Additionally, an electric versus gas tank water heater can vary in cost, too. 

• Size: 
  • The size of the water heater you need will depend on the size of your home. This refers to things like the number of bathrooms, the number of people in your household, the kind of tubs you have (whether they’re soaking tubs or not, etc.) 
  • Per Bradford White (our recommended tank water heater brand), a good rule of thumb is to have a tank that holds 10-15 gallons of water for each person in your home. 
  • Typically, the bigger the water heater, the bigger the costs. A large water heater means the tank will be bigger. Plus, the larger the unit, the bigger the installation job will be, which are all important things to consider. Furthermore, this will also mean higher monthly energy bills.  
  • On the same note, you don’t want to choose a unit that is too small for your home and will not be able to keep up with your water heating needs. Getting a water heating unit that is too small will only result in you running out of hot water when you need it. It could also increase unnecessary strain placed on your unit, ultimately shortening its lifespan and negatively affecting its efficiency. 
  • Another thing to consider regarding your water heater’s size is whether you need a tall or short unit. While this won’t adversely affect your direct water heating needs, sometimes a short unit is necessary to fit in a small space with a particularly low ceiling or in a narrow closet.  

• Location: If you are changing the type of water heater you have (i.e., from gas to electric or electric to gas), it’s likely that its location will have to be changed as well. On top of that, installation costs may vary depending on where it needs to be installed, for instance, an attic or basement. Lastly, if additional pipework needs to be added, based off the water heater’s location, this will also contribute to the cost. 

• Energy Efficiency: The energy efficiency of your water heater is such an important factor. You’ll want to make sure this is not one you overlook. Energy efficiency is something that should be thought about when considering overall costs. Although upfront costs are important, an energy-efficient unit over the next years is what will pay you back over time. Otherwise, you will end up dishing out more energy costs each month. So, make sure to factor in energy-efficient units when weighing the pros and cons of each water heater you are considering. 

Cost of a Tank Water Heater in 2024 

Now that you know what factors can impact the cost of a tank water heater, let’s go over the general pricing. Please bear in mind that these prices are only meant to provide you with an idea of how much a new tank water heater may cost you in 2024. Costs are subject to change depending on the impacting factors discussed above. 

Water heater replacement costs in 2024 typically range from the lowest starting point of $1,700 to the highest being $4,000. On average, homeowners can expect to pay about $2,850 for their new water heater replacements. Remember, these price points are subject to change based on factors and yearly costs. 

Frequently Asked Questions

“Does Five Star Home Services provide free estimates?” 

• Absolutely! Getting detailed information regarding your home, so that you can make the best decision possible, shouldn’t cost you a thing. Click here to schedule your free estimate today! 

“Does Five Star Home Services charge for removal & disposal?” 

• No. The free quote we provide you with during your scheduled free plumbing estimate will include your total, with no extra hidden fees for removing and disposing of your old water heater. 

The cost of getting a new tank water heater for your home is based on its type, size, energy efficiency, and location in your home. Understanding these essential factors will help you make the best homeowner decision. The good news though, is that you don’t have to make the decision alone. Your Five Star experts are here to help and guide you! With our transparency and expertise, you can rest easy knowing we will wholeheartedly back you up in making the best choice for you, your family, and your home! 

Feel like you are drowning in information? Let us help ease the load on your water heater journey. Don’t hesitate to contact us at your convenience! Call Five Star Home Services today at (833) 409-8005 or schedule an appointment by clicking here!