How Much Does It Cost to Replace a Water Heater in 2024? 

Yarbrough & Sons Homeowner Tips

Family Owned & Operated

Trusted & Highly Rated Service

Responsive & Timely Service

    Family Owned & Operated

    Trusted & Highly Rated Service

    Responsive & Timely Service

How Much Does It Cost to Replace a Water Heater in 2024? 

Yarbrough & Sons specializes in water heater repair and replacement, making our team the local water heater experts!

The water heater is a vital appliance in any home, providing hot water for showers, baths, laundry, and dishwashing. We like to prepare our customers on how much it costs to replace equipment, including water heaters. This article will answer your questions on water heater brands, types and pricing to help you work it into your budget.

Types of Water Heaters: 

  1. Natural Gas Water Heaters: Natural gas water heaters use a burner to heat water stored in a tank. They are a popular choice for homeowners because of their efficiency and relatively low operating costs. However, the initial installation cost can vary depending on factors such as tank size and brand. 
  2. Propane Water Heaters: Propane water heaters operate similarly to natural gas models but use propane gas instead. Propane is often the preferred option for homes without access to natural gas, despite being more expensive. The cost of replacing a propane water heater depends on factors like tank size and installation.
  3. Electric Water Heaters: Electric water heaters use heating elements to warm water stored in a tank. Electric water heaters may be cheaper initially, but they are not as energy-efficient as gas models. This means that they end up costing more to operate over time. Replacement costs for electric water heaters can vary based on factors such as tank size and brand. 
  4. Heat Pump Water Heaters: This type of water heater uses electricity to pull heat from the air and heat the water in the tank. They are energy efficient and can save money on utility bills. Although they may cost more to install initially, their advanced technology makes them a good investment for homeowners. 
  5. Gas Tankless Water Heaters: These innovative water heaters, also referred to as on-demand water heaters, can heat water instantly as it flows through the unit. Unlike traditional models with storage tanks, tankless water heaters eliminate the need for bulky containers. They often come with higher initial expenses compared to conventional tank-style models. Replacement costs for tankless water heaters can vary depending on factors such as flow rate and installation complexity. 

Factors Affecting Water Heater Replacement Costs: 

  • Size and Capacity: Larger water heaters or those with higher capacity tanks will generally cost more to replace. 
  • Brand and Durability: Water heaters from well-known brands may cost more, but they usually work better and last longer.
  • Installation: Factors such as the water heater’s location, accessibility, and required plumbing or electrical work can impact installation costs. 
  • Efficiency: Energy-efficient water heaters may cost more initially. However, they can ultimately save you money on your bills. 

Average Costs for Water Heater Replacement: 

The pricing chart below provides average cost ranges for replacing different types of water heaters: 

Water Heater Price Range for 2024

  • Natural Gas Water Heater $1,900 – $4,500 
  • Propane Water Heater $2,500 – $4,500 
  • Electric Water Heater $2,000 – $4,500 
  • Heat Pump Water Heater $3,500 – $9,000 
  • Tankless Water Heater $3,500 – $6,000 

Saving Money on Your Water Heater Replacement: 

While replacing a water heater can be a significant investment, there are ways to save money and maximize efficiency: 

  • Consider energy-efficient models that may qualify for rebates or incentives. 
  • Invest in regular maintenance to prolong the lifespan of your water heater and optimize performance. 

Common Failures on Water Heaters:

  1. Age and Wear: Water heaters have a finite lifespan. Over time, they accumulate wear and tear because of constant heating and cooling cycles. Most conventional tank-style water heaters last around 10-15 years. Components like the heating element, anode rod, and tank lining can degrade over time, causing inefficiency and possible leaks.

  2. Corrosion: Corrosion is a significant issue, especially in tank-style water heaters. Once corrosion sets in, leaks become inevitable. Regular maintenance, such as flushing the tank, helps delay this process, but eventually, replacement becomes necessary.
  3. Leaks: Leaks are a clear sign that a water heater needs replacement. Whether it’s a small drip or a major rupture, leaks can cause water damage to your home and increase utility bills. If you notice water pooling around the base of your water heater, it’s time to consider a replacement.
  4. Inefficient Heating: As water heaters age, their efficiency decreases. Older models may struggle to heat water adequately, resulting in lukewarm showers or longer wait times for hot water. Upgrading to a newer, energy-efficient model can improve performance and reduce energy costs.
  5. Rust-Colored Water: Sediment buildup and rust can cause your water to have a noticeable rusted color.
  6. While flushing the tank can help temporarily, persistent rust-colored water indicates internal damage. Replacement ensures clean, clear water.
  7. Strange Noises: When sediment builds up at the bottom of the tank, it can cause water heaters to make popping, rumbling or banging noises while heating.
  8. These sounds indicate inefficient heating and reduced capacity. Replacing the water heater eliminates these disturbances.
  9. Energy Efficiency: Modern water heaters are more energy-efficient than older models. Upgrading to a tankless or hybrid water heater can significantly reduce energy consumption and lower utility bills. If your current water heater is outdated, consider switching to a more efficient option.
  10. Safety Concerns: Faulty water heaters can pose safety risks. A malfunctioning gas water heater may emit carbon monoxide, a colorless and odorless gas that can be deadly. Regular inspections are crucial, but if safety issues persist, replacement is the safest choice (see “The Importance of Proper Flue Ventilation“).


The majority of homeowners will need to budget for a new water heater replacement. Our goal is to help homeowners make the right investment for their home, and to save as much money as possible in process.

We always recommend talking with a professional about water heater options that will best fit your home’s needs. We also highly encourage homeowners to use a professional plumber for an optimal installation. Replacing a water heater is a necessary investment for maintaining comfort and convenience in your home.

About Yarbrough & Sons Heating, Cooling & Plumbing: Yarbrough & Sons has been serving Oklahoma City since 1988, providing top-notch home comfort solutions. With over 450 years of combined experience, our family-owned business is dedicated to quality, comfort, and caring for our community. Trust us for all your HVAC needs.

Ready for 5-Star Service?

Contact Yarbrough & Sons for all your HVAC & Plumbing needs in the Oklahoma City, OK area!

Book Online Book Online