Who Says There's No Inflation? Hot Water Heater 300% in 10 Years!

[mrlynn]

Yes, there are definitely new rules mandating higher efficiency, which for this type of water heater means a little more insulation, meaning it takes up more space (not a problem for us, but some people have them in tight closets).

Don't get me started on the blankity-blank feds sticking their noses into every aspect of our lives.

You can buy this type on Amazon and elsewhere for c. $600-1,000. The ones they're now billing as 'high-efficiency' are priced at three times that.

Rick-O, in this town (and state, I assume) a water heater has to be installed by a licensed electrician, and he has to pull a permit. Technically you can't even fix a faucet leak or change a light fixture in this town without a permit, but most of us ignore that. CH4, though—I'm happy to let a pro deal with it.

For years we've been told price inflation is a modest 2-3%. It's increasingly obvious how bogus those numbers are.

/Mr Lynn

[decay]

But this isn't a case of inflation-related price increase, is it?

it's directly related to federal mandated efficiency.

[mrlynn]

Bixby wrote:
My plumber told me the extra you pay for a long-warranted water heater basically pays for their insurance against their own failures. Those heaters don't have better parts or thicker insulation. So a unit with a 6-year warranty is mechanically no better than one with a 10-year warranty.

Doubtless that is so, but the plumber's price for the 10-year warranty was just $100 over the price for a 6-year one, so I figured, what the heck: four cases of beer.

/Mr Lynn

[Acer]

I would really like to go tankless, but capacity was an issue last time I shopped. Mine would need to keep two showers happy simultaneously...even in winter when water from the public tap can be in the low 50s. And, with my short plumbing runs in my tickytacky house I have virtual instant hot at most sinks. I don't know if I can properly factor in the cost of Wife Aggro when we have to run water for 5 minutes just to wash hands in warm water.

[mrlynn]

decay wrote:
But this isn't a case of inflation-related price increase, is it?

it's directly related to federal mandated efficiency.

I don't think we can attribute all the increase to fed mandates, though they are certainly a factor—nothing is better at driving up prices than the feds making rules. But the labor is also a very big part, methinks.

/Mr Lynn

[Ombligo]

I went to a gas tankless 6-7 years ago and have never regretted it. The install was easy although I had to have the gas company do the gas hookup for insurance reasons. It is an direct vent unit so I avoided about $500 in stainless steel exhaust venting.

My son asked about putting one in at his home but it would need to be electric and that means running upgrading all of his electric or about $3500 for installation. I told him to stay with a tank heater and we are in that hunt now, I'll do the install.

[Black]

mrlynn wrote:
[quote=decay]
But this isn't a case of inflation-related price increase, is it?

it's directly related to federal mandated efficiency.

I don't think we can attribute all the increase to fed mandates, though they are certainly a factor—nothing is better at driving up prices than the feds making rules. But the labor is also a very big part, methinks.

/Mr Lynn
There are so few players left in that game that price fixing is pretty much guaranteed to play some role.

[OWC Jamie]

Paul F. wrote:
[quote=billb]
[quote=DP]
Next time I'm going with a tankless. There are just two of us here and it makes more sense.

With relatively low natural gas prices you may save only $100/yr which doesn't quite cover the double to triple outlay cost of the tankless vs storage if it only has a lifetime of 20 years vs 10.

They are (more ) popular and cost effective where fuel costs are high.
They're no long "double to triple" the cost either.

The cheapest Rheem storage tank (40 ) is $399.
The cheapest INDOOR Rheem tankless here is $1099.

There are OUTDOOR tankless units for $700.
No one installs water heaters outside here.

[mrlynn]

Black wrote:
[quote=mrlynn]
[quote=decay]
But this isn't a case of inflation-related price increase, is it?

it's directly related to federal mandated efficiency.

I don't think we can attribute all the increase to fed mandates, though they are certainly a factor—nothing is better at driving up prices than the feds making rules. But the labor is also a very big part, methinks.

/Mr Lynn
There are so few players left in that game that price fixing is pretty much guaranteed to play some role.
You mean manufacturers? Yes, there are apparently only three, making units that sell under different brand names. But there does seem to be a good distribution of prices at retail. And if you mean plumbers, there is no shortage of them in our area. That there was a $250 difference between the two I called suggests a reasonable amount of competition.

/Mr Lynn

[Black]

mrlynn wrote:
[quote=Black]
[quote=mrlynn]
[quote=decay]
But this isn't a case of inflation-related price increase, is it?

it's directly related to federal mandated efficiency.

I don't think we can attribute all the increase to fed mandates, though they are certainly a factor—nothing is better at driving up prices than the feds making rules. But the labor is also a very big part, methinks.

/Mr Lynn
There are so few players left in that game that price fixing is pretty much guaranteed to play some role.
You mean manufacturers? Yes, there are apparently only three, making units that sell under different brand names. But there does seem to be a good distribution of prices at retail. And if you mean plumbers, there is no shortage of them in our area. That there was a $250 difference between the two I called suggests a reasonable amount of competition.

/Mr Lynn Manufacturers. I have a number of resources for getting a hwh replaced for around $300 labor if I need to.