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Buyers Information: Understanding the Average Cost of a Furnace

Posted by Kelly on Feb 18, 2016 3:37:23 PM

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You get what you pay for. That’s a statement that rings true for nearly everything you spend your money on. Higher quality items are usually more expensive and those of lesser quality tend to be cheaper. Applying that same logic when buying a furnace is important to keep in mind when you are in the market for a new one, so here are some items to help you understand the average cost of a furnace. 

What Is The Average Price?

According to homeadvisor.com, the average national homeowner spent between $2,225- $5,511 to install a furnace. However, there are many factors that go into the overall cost of a new furnace. You’ll notice a difference in price if you have a bigger house to heat up. You’ll likely need a more powerful HVAC system, or maybe even two separate HVAC systems, if you have a lot of square footage. You may also notice a difference in cost depending on the climate you live in. You may not need a powerful machine (or even a furnace at all) if you live in a southern climate. But in a region where you experience artic-like weather – like we endure here in Minnesota – you’ll need something that can pull its weight. 

The price of a furnace also varies by type of system you get (gas vs. oil vs. electric, etc.), the brand you pick, and the efficiency/quality of the equipment. Plus, you can never underestimate calculating in the future costs of the furnace you choose. That means things like the warranty that comes with the furnace, the price associated with maintaining it and getting repairs done, and the cost of running it on average.

If you are in the market to get a new furnace, you need to consider it all – including the final cost of Installation.

The Biggest Variable: Installation Rates

Our resident expert, Keith Hill, technical support manager at Minnesota Air, says that besides the obvious components and supplies, there is a lot included in the final price tag. The price of installation varies based on the skill of the technician, the other factors we mentioned above, and even more variables than the average homeowner can imagine. 

According to Keith, you need to factor in freight, permit fees, overhead costs for the business including tools and test equipment, training costs for the installers and technicians, and warehouse costs – not just for the new equipment, but for the service parts they have on hand so you can get heat in the middle of the night should something go out.

“Labor costs are high, but a good HVAC pro is worth it,” says Keith. “Would you rather have a low-priced guy who is untrained installing your furnace or a highly trained professional? All of those costs go into your new furnace installation.”

He says an HVAC system isn’t an area to cut corners on to save a few bucks.

“If you’re going to skimp, don’t do it on an appliance that you rely on for heat in sub-zero weather and one that burns a very flammable fuel and emits flue gases, potentially dangerous gases if not installed and set up properly,” he says. 

If you are in the market to get a new air conditioner, check out our guide to AC installation costs.

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Topics: Heating