How Much Does a New Home Furnace Cost?

There comes a time in many a homeowner’s life when they’re faced with needing to replace their home’s furnace. Furnaces—which are responsible for heating homes—have about a 15 to 20 year lifespan. Buyers of new construction won’t have to worry about replacing theirs for a while, but other buyers need to be aware that there’s a strong chance they’ll have to replace their home’s furnace in the near or semi-near future. For that reason, if you’re a homeowner it’s important to budget for a new home furnace so that you’re not unexpectedly hit with a bill that you can’t pay.

Signs Your Furnace is on the Fritz

Before we get into the cost of a new home furnace, let’s go over what you need to be on the lookout for. Catching problems early on means that you may be able to just have your furnace repaired, instead of needing to entirely replace it. It may also mitigate your chances of causing more extensive damage or inconvenience.

Here are the signs of furnace failure to watch out for:

  1. Rising utility bills As your furnace gets older, it has to work harder to maintain the same level of heating. As such, if you start to notice your heating bill going up without any other explanation, it could be a signal from your furnace that it’s just not working like it used to.
  2. Strange noises Unexplained noises are another sign your furnace is working harder than it should be. Keep an ear out for popping, hissing, rattling, banging, and anything else that suggests your furnace isn’t running quite up to par.
  3. Inefficient heating This one is a biggie. Your home’s furnace has one important job: to heat your home. So if it’s not doing that job well, it may need a replacement part—or it may just be at the end of its life. Aside from just being cold in your home, air that alternates in temperature from room to room is also a sign that your furnace isn’t working properly.
  4. Regular repairs It’s very common for furnaces to need at least a couple of repairs before they need to be completely replaced. If you notice however that you’re having to call your heating and cooling professional out more often than you used to, it’s probably time to look into buying a new system.
  5. A yellow burner flame A healthy furnace always has a blue furnace flame. If it’s yellow, that’s your cue that something is off. It might be that dirt, debris, or dust are gathering up heavily around the flame, or that there’s excess moisture or draftiness. It can also be a sign that your furnace is creating carbon monoxide (which is definitely not good). Sometimes the problems causing a yellow flame are not due to the furnace itself, but it’s still always smart to have someone come out and look at it right away.
  6. It’s old Furnaces work hard, and they’re not meant to last more than a couple of decades. If you know your furnace is getting up there in years then have someone come evaluate it, even if you haven’t noticed any other signs that it may be due for a replacement.

How Much Does a New Home Furnace Cost?

If you’re planning to stay in your home for awhile then it’s pretty much guaranteed you’re going to need to pay to replace the furnace at some point. Consider that you’ll need to account for both installation and the cost of the furnace itself. Both of these costs will depend on what brand you purchase and who you hire. There are also cost distinctions depending on whether you purchase a gas furnace or an electric furnace.

According to HomeAdvisor, these are the prices you can expect:

Average gas furnace cost: $1,215
Average gas furnace installation cost: $2,370
Average electric furnace cost: $665
Average electric furnace installation cost: $1,950

Altogether, a new home furnace —with system plus installation—will probably run you anywhere from about $2,530 to just over $6,000.

How to Choose a New Furnace

When it’s time to buy a new furnace, you’ll want to make sure that you buy one that is the right fit for both your home and your budget. Here are some of the pros and cons to keep in mind when deciding between a gas vs. electric furnace for your house.

Gas furnace:

  • More expensive to purchase and install, but lower fuel costs over time.
  • More energy efficient than an electric furnace.
  • Requires semi-regular maintenance and upkeep.
  • Better for colder climates.

Electric furnace:

  • Less expensive to purchase and install, but higher energy costs over time.
  • Quieter to run than a gas furnace.
  • Not as energy efficient as a gas furnace.
  • Requires easier and less frequent maintenance.
  • Better for warmer climates.
  • Can last a bit longer than gas furnace—up to 30 years.

Gas furnaces are more popular than their electric counterparts. Forty-seven percent of U.S. households rely on gas furnaces, compared to 36% who use electric ones, according to the U.S. Energy Information Administration’s 2015 Residential Energy Consumption Survey. (The other percent use electric heat pumps, or do not have a heating system in their home at all.)

Do your research when figuring out the best furnace replacement option for your house, taking into account both energy efficiency and your unique heating needs. Note that low-energy furnaces are available and will save you on your utility bills over time, though they cost a bit more up front.

Who Should Install Your Furnace?

Both gas and electric furnaces require professional labor to install. As previously mentioned, it’s one of the main factors you’ll have to consider when determining your new home furnace cost, and fees generally run higher than the cost of the furnace itself. High labor fees are due to the experience required to properly install a furnace, plus the install can take as long as eight hours from start to finish.

If you already have a heating and cooling professional who works on your home then they should be the first person or company you go to when you’re looking for a furnace install. Ask about pricing, as well as warranty information. You may also want to reach out to them before purchasing a furnace, as they might be able to guide you to your best option.

If you don’t already have someone who you can call, your best plan of attack is to start with referrals and online reviews. Take a look at our article on eight ways to find a handyman, plumber, or other service provider which provides additional guidance that will come in handy during your search.

As we recommend with any service that you hire, narrow down your choices to a few good picks and then reach out and get quotes from all of them. That way, you can be sure that you’re not spending more than you have to on your furnace install.

The cost to install a new home furnace definitely isn’t cheap, but it is worth it. Heat is important, after all, and the new furnace you put in will last you for at least 15 years—and even longer if you practice regular maintenance, look out for signs of trouble, and take good care of it.