Tank vs Tankless Water Heaters: Which Is Right for You?

When your water heater needs replacing, you have a choice: stick with a traditional tank unit or switch to tankless. Both have advantages. Here is what you need to know.

Tank Water Heaters

How They Work A large tank (usually 40-50 gallons) stores hot water and keeps it heated around the clock. When you use hot water, it draws from the tank while cold water refills it.

Pros - **Lower upfront cost:** Tank units cost $1,000-2,500 installed vs $3,000-5,000+ for tankless - **Simple installation:** Especially when replacing an existing tank - **No changes needed:** Works with your existing plumbing as-is - **Adequate for most homes:** 50-gallon tank serves most households well

Cons - **Higher energy bills:** Constantly heating water even when not in use - **Shorter lifespan:** 10-15 years vs 20+ for tankless - **Can run out of hot water:** Heavy usage can deplete the tank - **Takes up space:** Requires dedicated floor space

Tankless Water Heaters

How They Work Heats water on demand as it flows through the unit. No storage tank needed.

Pros - **Lower energy bills:** Only heats water when you need it (20-30% savings typical) - **Unlimited hot water:** Never runs out as long as demand stays within capacity - **Longer lifespan:** 20+ years with proper maintenance - **Compact size:** Mounts on wall, frees up floor space - **No tank failure flooding:** No tank means no tank to rupture

Cons - **Higher upfront cost:** 2-3x the cost of a tank unit - **May need upgrades:** Gas lines, electrical, or venting may need modification - **Flow rate limits:** Very high simultaneous demand can exceed capacity - **Cold water sandwich:** Brief pulses of cold water between uses

Which Should You Choose?

Choose a Tank If: - Budget is a primary concern - Your current tank setup works fine - You have 1-2 bathrooms and moderate hot water needs - You prefer simpler, proven technology

Choose Tankless If: - You plan to stay in your home long-term (to recoup higher cost) - You have high hot water demand (large family, multiple bathrooms) - Energy efficiency is a priority - You need the space a tank unit takes up - Your current tank is in an inconvenient location

Our Recommendation

For most Southern Oregon homeowners, a quality tank water heater is still the practical choice. The upfront savings are significant, and modern tank units are quite efficient.

Tankless makes sense for larger homes with high demand, or homeowners who prioritize efficiency and plan to stay put for 10+ years.

We install both types and will give you an honest assessment based on your situation. No pressure either way.