The global market for HVAC systems is estimated to reach about $241.8 billion by 2025. With the notable climate change, the growth in the HVAC market is inevitable. If you’re thinking of upgrading your system for better reliability, let’s explore why a furnace replacement might be the solution for you.
An old furnace produces cold air, dust, unusual noises, and high energy bills. However, when you opt for furnace replacement, you can rely on your system to operate without worry. Still, the cost implication of this upgrade is a concern for many homeowners.
If you’ve been wondering about furnace replacement cost, you’re in the right place. Check out our guide to know some of the prices to expect.
Your Essential Guide to Furnace Replacement
⎆ Average Furnace Replacement Cost
The cost of furnace replacement depends on its type and location. On average you’ll spend between $1,000 and $6,000. In some cases, you might spend as high as $13,000.
For the gas-fuel furnaces, the average cost is around $2,000 to $10,000. Next, an electric furnace costs between $1,200 and $7,000. Additionally, oil-fuel furnaces are between $4,500 and $7,000.
Besides the common fuel types, some buildings use geothermal or mini-split, which are more expensive. Given these varying options, it is important to do your research before settling for a type of furnace. You’ll need to know the furnace that is ideal for your home.
⎆ Gas Furnace Replacement Cost
Gas furnaces are popular, especially in areas with harsh winters. Interestingly, a report by the U.S. Energy Information Administration shows that 47% of American households use natural gas as their primary source of furnace fuel.
How much does it cost to replace a gas furnace? Well, the price depends on the brand. A popular brand such as Payne costs $1,850, inclusive of installation fees. Goodman is another brand of a gas furnace that costs about $1,900 for the parts and installation.
Big brands such as American Standard and Lenox are more pricey. The cost of parts and installation for these two brands is $3,600 and $4,100, respectively. There are also several other gas brands to research and decide if they are in your budget.
Natural gas costs at least $1.10 for 100,000 BTU. Service calls range between $70 and $160, with the installation of parts starting from $70. With the right brand, your furnace can last up to 20 years.
⎆ Electric Furnace Replacement Cost
Electric furnaces are not in high demand as their gas counterparts. They are expensive because of their high energy use. To replace your electric furnace, you’ll part with more than $1000.
The cost of labor when replacing an electric furnace is between $300 and $800 for 3 to 4 hours. The unit itself can be from $500 to $1500. You’ll also need to consider the cost of materials, which can cost up to $400.
When replacing the furnace, you don’t have to get new electrical parts if they are still in optimal condition. If you need to change the duct, the installation will cost you less than $500 on average. Just like all other types of furnaces, the brand will have significant impacts on the overall cost.
The good thing about an electric furnace is that the maintenance cost is quite low. That’s in addition to the cost of electricity, which is about $2.92 for 100,000 BTU. Service calls are often less than $170, with the installation of parts running up to $775.
⎆ Oil Furnace Replacement Cost
Oil furnaces have been in use for many years. However, they are becoming obsolete due to high oil prices. What’s more, an oil furnace can cost you as high as $9,000.
So, how long does a furnace last? Homeowners using oil furnaces need to check for signs such as strange noises, uneven heating, and skyrocketing bills.
The price of oil furnaces cost between $1,850 and $9,000, which depends on several factors. One of the major influence over the furnace replacement cost is standard vs. condensing in oil-fuel systems.
HVAC brands such as Lennox, Trane, and Carrier manufacture non-condensing oil furnaces, which costs between $2,750 and $5,100, including the installation charges. Brands such as Granby Conforto and Adams are condensing, meaning that they utilize secondary heat exchangers, which boosts efficiency. The cost of these condensing oil furnaces costs from $7,700 to $9,000.
Other factors, such as fuel efficiency, performance features, warranty, and size, determine the cost of oil furnaces. It is also best to consider service calls, which are between $70 and $160.
The cost of installation is higher when you’re installing more expensive brands. In fact, one of the cheapest oil furnace brands is Armstrong, costing an average of $1,295. On the other hand, Trane costs $2,195.
⎆ Other Factors to Consider
When replacing your furnace, the upgraded features play a critical role in determining the price. If you have a tight budget, you don’t need to buy additional features. Without them, most furnaces perform well without the expensive accessories.
Moreover, with the variety of options available, you’ll get a furnace that’s within your budget. As a matter of fact, you don’t have to go for high-end brands as they don’t necessarily guarantee you durability.
The HVAC contractor you hire also affects furnace replacement cost. An experienced and trustworthy contractor will give you peace of mind. We recommend that you continue to do your research and carefully vet a contractor before signing an agreement.
⎆ Brands & Locations
Furnace replacement costs vary according to brand and also your location. It is a good rule of thumb to not spend more than a third of a unit’s replacement cost in repairs. If your unit isn’t functioning optimally, replacing it might be better than continual maintenance costs, especially if it has served you for several years.
To estimate the furnace replacement cost, you must first establish the cost of the different parts and the installation charges. However, you also need to understand that these average prices might change depending on the brand you prefer and your location. Consulting with an HVAC contractor is the best way to determine the furnace that’s ideal for you and your family.
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