Tankless Water Heaters: The Good, the Bad, and the Overhyped
If you’ve owned a traditional tank water heater your whole life, it’s easy to get drawn into the promise of going tankless. Endless hot water, higher efficiency, modern tech — what’s not to love? Well… as with most things in the home improvement world, the answer is: it depends.
Let’s walk through what actually changes when you ditch the tank for a tankless system — and where the marketing gets ahead of the math.
🔥 The Benefits of Tankless Water Heaters
1. Endless Hot Water (Sort Of)
Yes, tankless systems heat water on demand, so you’re not limited to a 40 or 50-gallon reserve. Great for long showers, big families, or back-to-back usage.
BUT: If your unit isn’t sized right, running two showers and a dishwasher at the same time might still leave someone shivering.
2. Energy Efficiency
Tankless units don’t keep water hot all day like a traditional tank. That standby loss you’ve been paying for? Gone. Many models reach 95% efficiency or more.
Translation: You can shave $75–$150 off your yearly energy bills in many homes — maybe more if your tank heater is ancient.
3. Smaller Footprint
Mounted on a wall, these things save floor space. If your water heater takes up half your utility closet, this can be a real perk.
4. Longer Lifespan
Tankless systems generally last 15–20 years if properly maintained. That’s about 5–8 years longer than a standard tank model.
🛑 The Drawbacks Most People Don’t Mention
1. The Price
Installed cost is $3,500–$4,800, sometimes higher if upgrades are needed. A standard tank is usually half that. Any energy savings will take years (or decades) to recover the difference.
2. Maintenance Requirements
Tankless heaters aren’t “set it and forget it.” Most manufacturers recommend yearly descaling or flushing, especially in areas with hard water. Skip the maintenance and you can void your warranty or gum up the internals.
3. Compatibility Problems
Your existing gas line might not be big enough. You may need new venting. If you’re on well water or live in a cold climate, performance can suffer.
Translation: Expect extra install costs in many cases.
4. Hot Water Lag
You might wait a little longer for hot water to reach the tap — especially if the unit is installed far from your fixtures. There’s no pre-heated tank standing by.
5. Upfront Sticker Shock
Even people who want a tankless system sometimes change course after seeing the quote. And most of the energy savings are small potatoes unless your household uses a lot of hot water daily.
💸 Should You Get a Tankless Water Heater?
Here’s the honest answer:
- If you’ve got multiple bathrooms, a big household, or you’re already doing a remodel where access and venting upgrades make sense — tankless might be the smarter choice.
- If you’re just looking for reliable hot water and lower cost, a good-quality tank system is still the better bang for the buck in most homes.
Final Thought:
Tankless water heaters are a great fit for certain homes. But they’re not magical. They don’t break physics. And they’re not a guaranteed money-saver. Like most upgrades, they make the most sense if you value the endless comfort and space savings more than you worry about the upfront investment.
Just make sure you’re buying for your lifestyle — not the brochure.