Are HVAC Prices Rising?

Buying a new HVAC system for your home is a big expense, and lately, it’s become even more costly. With rising prices hitting the market, many homeowners are feeling the impact. HVAC.com explores why HVAC costs are going up and what you can expect in the future.

To help combat higher HVAC prices in 2024 and beyond and ensure you always receive a fair deal on a new heating and cooling system, HVAC.com can provide a free quote and connect you with a top-rated installer in your area. Our refreshingly different approach to HVAC replacement saves homeowners 20% on average.

Why Are HVAC Prices Increasing?

Parts Shortages

One of the main reasons the cost of an HVAC system is going up is due to a parts shortage. The COVID-19 pandemic threw a wrench into global supply chains, causing major delays and shortages of  key components needed for HVAC systems. Semiconductors, compressors, and other essential parts have been particularly affected, causing manufacturers to struggle to meet demand.

The pandemic also caused factory shutdowns and cut production capacity, worsening supply issues. As a result, the cost of some parts has increased, and manufacturers have passed some of these costs onto consumers, leading to higher prices for new HVAC systems and parts.

Inflation

Inflation is another reason HVAC prices are going up. The global economy has been hit hard by inflation lately, driven by higher consumer demand, rising costs for raw materials, and labor shortages. These pressures are affecting many industries, including HVAC, and are pushing up production and operating costs.

For example, metals like copper and aluminum, which are essential for HVAC systems, have become much more expensive. On top of that, transportation costs have risen due to higher fuel prices and logistical issues. All these factors are forcing HVAC manufacturers to raise their prices to keep up.

Labor Costs

The HVAC industry, like many others, is facing a shortage of skilled labor. The demand for qualified HVAC technicians has outpaced supply, leading to higher wages and increased labor costs. Training new technicians takes time and resources, and the shortage has resulted in longer wait times for installations and repairs, further driving up costs.

R-410A Phase Out

The switch to new refrigerants and the phase-out of R-410A is also affecting HVAC costs. As R-410A, a widely used refrigerant, is gradually being phased out due to its high global warming potential, manufacturers and consumers are transitioning to newer, more environmentally friendly alternatives like R-454B. Cooling systems manufactured starting in 2025 will be required to use R-454B which will likely cause the price of a new unit to increase.

Will HVAC Costs Continue to Rise?

A big question many people have is whether HVAC prices will keep rising. While it’s hard to predict exactly, several trends suggest that prices might stay high for a while.

HVAC manufacturers are raising prices due to higher costs for key components like copper, aluminum, and semiconductors, as well as increased transportation expenses. Supply chain problems, still lingering from the pandemic and worsened by new challenges like geopolitical tensions and natural disasters, are also keeping prices up.

Inflation is another factor likely to keep prices elevated. Although efforts are being made to control inflation, it takes time for these measures to make a difference.

To manage the rising costs of a new HVAC system, stay informed and plan ahead. Regular maintenance and timely repairs can help keep your HVAC system running efficiently and might save you money in the long run.