Why You’re Seeing More Tankless Water Heaters in Dayton Homes

If you’ve been noticing more homes in the Dayton area using tankless water heaters, you’re not imagining things. Tankless systems are quickly becoming the go-to upgrade for homeowners, homebuilders, and real estate investors looking to increase energy efficiency, cut utility costs, and reduce their environmental impact.

Let’s break down why this plumbing trend is surging in 2025—and why it might be time for your home to follow suit.

Energy Efficiency That Pays Off

The #1 reason homeowners switch to tankless? Energy savings. Traditional water heaters constantly heat a large tank of water, even when you’re not using it. Tankless units, on the other hand, heat water on demand—meaning they only work when you need hot water.

According to the U.S. Department of Energy, homes that use 41 gallons or less of hot water daily can be 24%–34% more energy efficient with a tankless water heater compared to a traditional one.

That efficiency adds up over time. Homeowners can save hundreds of dollars each year on their utility bills, depending on usage.

Long-Term Cost Savings

While tankless water heaters can be more expensive upfront than traditional tank models, they tend to last much longer—about 20 years, versus 10–15 years for a standard water heater.

According to Forbes Home, the average cost of a tankless water heater ranges from $500 to $2,500, with installation adding another $1,000 to $3,500, depending on the size and type. While the investment may seem steep, the lower energy bills and longer lifespan can offset the cost over time.

Plus, many utility companies and government programs offer rebates or tax incentives for switching to energy-efficient systems.

Smaller Footprint, Bigger Impact

Tankless systems are also more compact than traditional units. This space-saving design is ideal for homes with limited utility room space—or for homeowners who simply want a cleaner, more modern setup.

Their sleek, wall-mounted design means they can be installed in smaller spaces like closets, pantries, or even outside walls in some climates. And with homeowners focusing more on smart design and efficient use of space, tankless heaters fit the bill.

A Trend in New Construction & Home Renovation

New construction homes across Dayton and the greater Miami Valley are increasingly being built with tankless systems as the default water heating option. Builders love the energy efficiency, and homebuyers are actively looking for properties that include these modern features.

A 2023 report by Allied Market Research projects that the global tankless water heater market will reach $12.4 billion by 2032, driven largely by rising demand in residential sectors.

Even in older homes, retrofitting a tankless system has become more common during kitchen or bathroom remodels. It’s one of those upgrades that feels modern and future-proof—exactly what today’s buyers want.

Final Thoughts from Bear Plumbing

At Bear Plumbing, we’ve seen firsthand how much Dayton homeowners benefit from making the switch to a tankless water heater. From lower energy bills to better hot water access and increased home value, it’s a smart investment with real results.

Thinking about upgrading your water heater? Give Bear Plumbing a call. We’ll walk you through your options and help you choose the right solution for your home and budget.