Space saver? The pros and cons of switching to a tankless water heater
- DownsizeTime.com
- Nov 26, 2023
- 5 min read
We've been using a tankless water heater in our big 1927 home for more than 10 years now. So the thought of buying a smaller space with a bigger water tank blows my mind.
If you're in the process of downsizing or just looking to make your home more energy-efficient, it's worth exploring the pros and cons of installing a tankless water heater.

Pros of Tankless Water Heaters:
Energy Efficiency:
Traditional tank water heaters constantly heat and reheat water to maintain a set temperature, leading to energy waste. Tankless water heaters, on the other hand, heat water on demand. This means they only use energy when you turn on the hot water tap, making them more energy-efficient and potentially reducing your utility bills.
Space-Saving Design:
Tankless water heaters are significantly smaller than their tank counterparts. Their compact size allows for more flexibility in installation, making them ideal for homes with limited space. If you're downsizing or looking to free up space in your utility room, a tankless water heater might be the perfect solution.
Endless Hot Water Supply:
Say goodbye to cold showers! With a tankless water heater, you have access to a continuous supply of hot water. Traditional tanks can run out of hot water after a certain capacity, leading to a wait time for the tank to heat up again. Tankless systems provide hot water on demand, ensuring you never run out during your relaxing shower or dishwashing session.
Longer Lifespan:
Tankless water heaters generally have a longer lifespan compared to traditional tanks. While traditional tanks typically last around 10-15 years, tankless systems can last up to 20 years or more with proper maintenance. This longevity can be a significant advantage, especially for those looking for durable, long-term solutions.
Reduced Risk of Water Damage:
Traditional tanks can develop leaks over time, leading to water damage in your home. Since tankless water heaters do not store large quantities of water, the risk of leaks and subsequent damage is significantly reduced. This feature can be particularly appealing if you're downsizing to a smaller space where water damage could have a more substantial impact.
Lower Environmental Impact:
The energy efficiency of tankless water heaters not only translates to cost savings but also a reduced environmental footprint. By using less energy to heat water, you contribute to lower overall energy consumption and greenhouse gas emissions. If sustainability is a priority for you, a tankless water heater aligns well with eco-friendly living.
Cons of Tankless Water Heaters:
Upfront Cost:
One of the primary drawbacks of tankless water heaters is their higher initial cost compared to traditional tanks. The price includes not only the unit itself but also the installation, which may involve modifications to your existing plumbing and electrical systems. While the investment can pay off over time in energy savings, it's essential to consider your budget and long-term financial goals.
Limited Flow Rate:
While tankless water heaters provide hot water on demand, their flow rate is not unlimited. If you have multiple hot water outlets running simultaneously, such as a shower and a dishwasher, you might experience a reduction in water pressure and temperature. It's crucial to choose a tankless system with a flow rate that meets the demands of your household.
Potential Retrofitting Challenges:
If you're switching from a traditional tank to a tankless water heater, you may encounter challenges with retrofitting. Tankless systems may require modifications to your existing plumbing and electrical systems, adding to the overall cost and complexity of the installation. It's advisable to consult with a professional installer to assess the feasibility and potential challenges specific to your home.
Cold Water Sandwich Effect:
Some users report a phenomenon known as the "cold water sandwich effect" with tankless water heaters. This occurs when hot water is momentarily interrupted, and the system takes a moment to heat the water again. During this brief interval, cold water may mix with the hot water, resulting in an unexpected temperature drop. While not a deal-breaker, it's worth considering, especially if you're sensitive to variations in water temperature.
Electrical Upgrades May Be Necessary:
Depending on your home's electrical capacity, upgrading the electrical system may be necessary to accommodate a tankless water heater. This can add to the overall installation costs. While gas-powered tankless systems are an option, they may also require adjustments to your existing gas lines.
Regular Maintenance is Crucial:
To ensure the longevity and optimal performance of a tankless water heater, regular maintenance is crucial. This includes descaling the unit to prevent mineral buildup, checking for leaks, and ensuring proper ventilation. While maintenance requirements are not overly demanding, it's essential to factor in the time and effort needed to keep the system running smoothly.
Making the Decision:
Switching to a tankless water heater is a significant decision that involves weighing the pros and cons based on your specific needs and circumstances. To help you make an informed choice, consider the following questions:
What is your budget?
If you have the financial flexibility to invest in a tankless system and are willing to commit to the long-term benefits, the higher upfront cost may be justified.
How much space do you have available?
If space is at a premium in your downsized home, the compact design of tankless water heaters can be a game-changer, allowing for more versatile installation options.
What is your household's hot water demand?
Assess your typical hot water usage, including the number of bathrooms and appliances that may run simultaneously. This will help you determine the appropriate flow rate for your tankless system.
Are you prepared for potential retrofitting?
If your home requires modifications for a tankless water heater, consider the feasibility and cost of retrofitting. Consulting with a professional installer can provide valuable insights into the specific needs of your home.
How important is energy efficiency to you?
If reducing your environmental impact and lowering energy bills are priorities, the energy efficiency of tankless water heaters may align well with your values.
Are you willing to invest time in maintenance?
Tankless water heaters require regular maintenance to ensure optimal performance. If you're willing to invest time in upkeep, the longevity and efficiency of the system can be maintained.
In the journey towards a more streamlined and efficient lifestyle, the choice of a water heating system plays a crucial role. The shift from traditional tank water heaters to tankless alternatives offers a range of benefits, from energy efficiency and space savings to a continuous supply of hot water. However, it's essential to consider the potential drawbacks, such as upfront costs and retrofitting challenges, before making the switch.
Ultimately, the decision to go tankless depends on your unique circumstances, preferences, and priorities. By carefully weighing the pros and cons, considering your budget, and consulting with professionals if needed, you can make an informed choice that aligns with your downsizing goals and contributes to a more efficient and comfortable living space.