Buying a water heater is no small task. There are a lot of things to consider, and it can be difficult to know where to begin. In this guide, you'll learn what to look for when buying a water heater, as well as some of the most popular options on the market today.
A water heater is a pretty simple device — it heats up water and keeps it hot until it's needed. But there are a lot of different types of water heaters out there, and they each have their own pros and cons. When shopping for a new unit, it's important to consider three main factors: price point, size/capacity, and efficiency level. These three things alone can help narrow down which models are right for your home.
What to Keep in Mind When Buying
Water Heater Size
The size of your home and the number of bathrooms determine the size of the water heater you need. Larger tanks hold more hot water, but they also take longer to heat up because they have more mass. Match the tank to your household: 2–4 people need roughly 36–46 gallons, 3–5 people need 46–56 gallons, and 5 or more people are best served by an 80-gallon tank or an on-demand tankless system.
Price
The average price of a gas water heater ranges from about $600 to $1,200, and electric models can run from as low as $350 up to $1,000. The price depends on the size and features you choose. An energy-efficient model that meets ENERGY STAR standards may cost more up front, but it saves money on utility bills over time. The average life expectancy of a tank water heater is about 10 years — if your current unit is older than that, replacing it now can save money because older units are less efficient and more prone to failure.
Efficiency
Water heaters are rated by efficiency, most commonly by gallons per minute (GPM) and Energy Factor (EF). A higher GPM heats water more quickly; a higher EF means less energy is wasted as heat loss. Look for the ENERGY STAR label — the EPA requires all new gas and electric water heaters to meet minimum efficiency standards.
Our Top Picks
Rinnai RUCS65iP Tankless Gas Water Heater
A natural-gas/propane tankless unit with a 6.5 GPM flow rate and Ultra Low NOx rating — a great whole-home pick for larger families that want endless hot water and a small footprint.
Rheem RTEX-24 Electric Tankless Water Heater
A compact 24 kW electric tankless heater with external digital temperature control and copper immersion elements — ENERGY STAR efficient and easy to install for a single-family home.
Final Editorial Verdict
Water Heater Types
There are three main types of water heaters — tankless, gas, and electric — plus a couple of alternatives worth knowing about.
- Electric: Generally cheaper to buy and simple to install (no venting or gas line), but slower to recover and typically less efficient in operating cost.
- Gas: Usually cheaper to operate and keeps working during power outages, but needs venting and a gas supply.
- Tankless: Heats water on demand, wastes no energy keeping a tank hot, runs quietly, and lasts nearly twice as long as a tank because it doesn't collect sediment.
- Solar: Uses roof-mounted panels to pre-heat water — very efficient in sunny climates, higher up-front cost.
- Heat Pump (Hybrid): Combines heat-pump technology with a conventional tank; ENERGY STAR hybrids can use around 30% less energy than standard electric models.
Top Brands
When shopping, it pays to stick with proven brands known for energy efficiency and reliability: Rheem, Reliance, American Standard, Bradford White, Kenmore, Whirlpool, GE, A.O. Smith, Rinnai, and EcoSmart. These companies have long track records and typically back their units with solid parts-and-labor warranties.
The Bottom Line
Start by answering three questions: tankless or standard tank? Electric or gas? Replacing an old unit or installing fresh? Your answers narrow the field quickly. Size the tank to your household, favor an ENERGY STAR model for long-term savings, and choose a reputable brand with a good warranty. Do that and you'll have reliable hot water for a decade or more.