Tankless Water Heater: Is It Right for You? The Pros and Cons

In the market for a new water heater? Whether you’re replacing an old one or in the process of new construction, consider which type will be best for you and your family: a traditional water heater or a tankless water heater.

A traditional water heater stores and preheats 30-50 gallons of water in a tank. It is constantly heating the water so that it is available for immediate use. A tankless water heater, also known as an “on demand” water heater, uses an external heat source, such as electric, solar or gas, to heat the water as you need it. Since they do not store water, they are more compact and can be installed outside of the house.

Before you make the decision on a traditional or tankless water heater consider:

  1. Your household usage
  2. The size of your household
  3. Your budget
  4. What you NEED out of a hot water heater

As we go through the pros and cons of traditional versus tankless water heaters, these four points will be your deciding factors on which is the best choice for you. Ultimately, it is important to know what you and your family need out of a hot water heater. Do you need a constant supply of hot water? Do you need hot water for more than one appliance at once, for example the washer and the dishwasher at the same time, or two showers going at the same time? Is there limited space in your home to install a traditional hot water heater?

The Pros and Cons: Traditional Hot Water Heater vs. Tankless Hot Water Heater



  • Readily available hot water.
  • Multiple hot water sources can be used at once.
  • Lower initial cost


  • Takes up more space.
  • Higher energy usage as they are always working to keep the water heated.
  • Potential to run out of hot water once the tank is empty.


  • More energy efficient, which also means money saved!
  • Continuous flow of hot water. You never have to worry about running out.
  • They typically have a longer lifespan than traditional systems, about 20 years of reliable life compared to a traditional tank’s 10-15 year life span.
  • With no storage tank, there is zero possibility of a leak.
  • They are small and don’t take up much space.
  • They can be installed outside of the house.


  • Higher initial cost.
  • Limited flow rate. Because the water is heated as it is used, the flow rate is limited making it difficult to use multiple sources of hot water at the same time.
Bottom Line:

When making the decision if a tankless water heater is best for your home, weigh the pros and cons against the four points. A tankless water heater can be a great solution for a small space, households with lower usage and for the energy conscious.

Our expert technicians at Universal can help you decide which hot water heater is best for your preferences and your home. We offer installation, repair and maintenance on traditional water heaters as well as several types of tankless water heaters.

Whether or not a tankless not water heater is right for you and your family, Universal Home Experts’ highly trained technicians can offer a solution for whatever you need. From minor repairs to full system replacements, call your friendly technicians at Universal Home Experts!