Tankless units have higher upfront costs but lower total cost of ownership. A quality tankless installation typically costs $3,000-5,000 compared to $1,200-2,500 for tank replacement.
However, tankless units last 20+ years versus 8-12 for tanks, and the energy savings add up quickly. Most homeowners break even within 6-8 years, then enjoy 12+ years of lower energy bills and reliable service.
Factor in the federal tax credits (up to $1,500) and space savings, and tankless becomes the smarter long-term investment for most North Auburn homes.