It’s no secret that homeownership costs and the overall cost of living are rising for many Americans, with no clear end in sight. Now, home HVAC systems, including cooling, heating, and indoor air quality equipment, are also feeling the effects of inflation.
If you’ve been thinking about replacing your HVAC system but keep putting it off, now might be the time to take a closer look. Over the past several years, equipment prices have steadily risen, and that trend is expected to continue. While it’s tempting to wait on such a major expense, doing so could mean paying significantly more down the line.
Here, we’ll break down why HVAC system costs are going up, what that means for homeowners, and why acting sooner could ultimately save you money and stress.
Are New HVAC Costs Going to Go Up in 2025?
In a word, yes. HVAC costs are expected to keep rising in 2025 and are unlikely to come down anytime soon.
Since 2020, new system prices have steadily increased, largely due to rising material and manufacturing costs. Major suppliers have responded with price adjustments to reflect these pressures. Carrier Global Corporation announced an 8% increase in North American commercial products, Trane Technologies introduced up to a 5% hike in residential systems in early 2024, and Lennox Industries followed with up to a 10% increase in residential equipment and accessories.
These price jumps reflect a broader industry trend: as production costs rise, suppliers must raise unit prices to maintain large-scale, regulated manufacturing.
Why Is HVAC Equipment Getting More Expensive?
A variety of factors are driving up the cost of heating and cooling systems, not just one single cause. From raw materials to regulations, here’s what’s contributing to higher prices:
- Raw material price increases: The cost of essentials like copper, steel, and aluminum rose sharply during the pandemic, and a semiconductor shortage further impacted production costs.
- Manufacturer price changes: Many HVAC manufacturers have raised prices on residential and commercial equipment to offset rising expenses from material tariffs.
- HVAC labor shortages: Fewer skilled technicians and a shrinking workforce have increased labor costs industry-wide.
- Environmental regulations: Recent changes, including the 2025 refrigerant phase-out of Freon and new SEER2 efficiency standards, require more advanced, costlier designs.
- Advanced technological features: Today’s systems include smart sensors, variable-speed motors, and home automation compatibility, all of which raise the base cost of equipment.
Ways Homeowners Can Combat Rising Costs of HVAC Equipment
While rising HVAC prices may be out of your control, there are still smart ways to manage your costs and plan ahead. Here are a few helpful tips to make the most of your investment:
- Take advantage of financing options: Many HVAC providers offer flexible payment plans that make larger purchases more manageable over time.
- Look for rebates and tax credits: Federal, state, and utility incentives can help offset the cost of high-efficiency systems.
- Look for deals and specials: Seasonal promotions or limited-time discounts can provide valuable savings on equipment and installation.
- Maintain existing equipment: Routine tune-ups, especially through a maintenance plan, can extend the life of your system and prevent costly breakdowns.
- Upgrade sooner rather than later: Investing now may help you avoid future price hikes and take advantage of current incentives.
Why Choose Indoor Comfort?
HVAC equipment prices may continue to change, but the quality of our service never will.
Indoor Comfort proudly serves Michigan homeowners in Ann Arbor, Ypsilanti, and Chelsea with best-in-class care that makes a real difference in everyday comfort. Our experienced technicians are committed to delivering exceptional results in heating and cooling—whether it’s a repair, new installation, or routine maintenance through one of our convenient service plans.
As a member of ACCA (Air Conditioning Contractors of America), we bring trusted industry expertise and consistent, top-rated service backed by our great reviews.
Our Name Is Your Guarantee. Contact us today to schedule a heating or cooling installation for your Ann Arbor, MI, home.
