The tank option
- Lower upfront cost and simple installation
- Stores hot water ready to use
- Can run out during heavy use
- Takes up floor space
The tankless option
- Heats water on demand
- Saves basement space
- Higher upfront cost and may need gas line or venting upgrades
- Needs regular descaling in hard water
Peak demand: A tankless unit must be sized for the number of fixtures running at once in winter.
Questions to ask yourself
- How many people shower in the morning rush?
- Will you still be here in ten years?
- Is basement space valuable to you?
- Is your gas line large enough?
Our honest view
For many smaller households, a well-sized tank is simple and dependable. For larger families or finished basements, tankless can make sense.
One more factor is your current setup. A house with a rented tank has to decide whether to buy out the rental or return it, and the rental contract may affect timing. A house with an older chimney-vented tank may need venting changes either way. Look at the whole picture before deciding on price alone.