What Is the Cost of a Furnace Installation in New York?

February 06, 2018


If you’re in the market for a new furnace, the immediate question is most likely, “OK, so how much is this going to cost me?”

Well, the cost of a furnace installation in the New York Metro Area typically costs anywhere from $4,500 to $9,000.

The factors that will affect the final price of your furnace install include:

  1. The type of furnace you choose

  2. How efficient the furnace is

  3. The size of the furnace

  4. Whether ductwork needs to be installed

  5. Whether you choose any “comfort features”

  6. The furnace warranty

  7. The labor required to install your furnace

We’ll explore each of these factors in depth so that you know what to expect.

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Factors that affect the price of your furnace installation

1. The type of furnace you choose

When it comes to furnace options in the New York metro area, homeowners have 3 options:

  • Electric

  • Gas

  • Oil

Typically, in terms of upfront installation costs, gas furnaces are more expensive than electric furnaces but oil furnaces are the most expensive of all three options.

Our professional suggestion? If you have access to natural gas, we suggest going with a gas furnace. Why? Well, gas furnaces are typically the most efficient heating available which means they offer the lowest monthly heating bills.

2. Furnace efficiency

The higher a furnace's efficiency, the higher the price of the unit.

Furnace “efficiency” is measured by AFUE (Annual Fuel Utilization Efficiency), which measures how much fuel/energy is converted into heat. The higher the AFUE rating, the more efficient the furnace.

Here’s how it works: Residential furnace efficiency ratings can range anywhere from 80% to 98% AFUE (oil furnaces top out at 90% efficiency, however). If a furnace has an 85% AFUE rating, it means the furnace turns 85% of the fuel/energy it consumes into heat while the remaining 15% is wasted in the form of flue gases that exit your home.

Furnaces are split into 2 categories based on their AFUE ratings:

  1. Non-Condensing furnaces (80%–88% AFUE)

  2. Condensing furnaces (89% AFUE and up)

So what makes “condensing” furnaces more efficient? Well, basically, condensing furnaces have a 2nd heat exchanger (the part of the furnace that heats the air). This second heat exchanger basically “squeezes” out extra heat from flue gases as they exit your home.

Non-condensing furnaces, on the other hand, don’t have this 2nd heat exchanger and simply waste those flue gases (and the heat they carry) by pushing them out of the house quickly.

Note: Electric furnaces are “100%” efficient because they convert 100% of the electricity they consume into heat BUT keep in mind that the electricity a furnace uses was initially created using coal or gas at roughly 30% efficiency.

3. Furnace size

The “larger” the furnace, the more expensive it is.

Furnaces are sized according to their “British Thermal Unit” (BTU) output. BTUs are a measurement of heat energy. Basically, the higher the BTU output of a furnace, the more heat it can provide in one hour. So a furnace with a BTU output of 100,000 BTUs is “larger” than a furnace with a BTU output of 50,000.

So how do you know what size furnace you need? Well, there are rule-of-thumbs you can use (i.e. calculate 40-45 BTUs for every square foot of your home) but those can easily steer you in the wrong direction.

You see, only a professional load calculation can provide accurate furnace sizing. That’s because there are a lot of other factors to consider other than just square footage. These additional factors include:

  • # of windows your home has

  • # of doors your home has

  • The climate of the area

  • Whether your home gets direct sunlight

  • How well insulated your home is

  • Height of the ceilings

  • Additional heat sources in the home

  • The usual number of occupants in the home

  • Kind of flooring: i.e. carpet or hardwood?

All of these factors can result in a BTU output that’s vastly different from the number you get after looking only at the square footage.

So what’s the big deal in getting a furnace that’s too big or too small? Well, a furnace that’s:

  • Too small will run constantly and still not heat your home properly, resulting in high heating bills and lower comfort.

  • Too big will heat your home too quickly and then shut off. This is called “short cycling” and results in lowered lifespan, more repairs, hot/cold spots and high monthly heating bills.

4. Whether ductwork needs to be installed

If you’re building a new home and need ductwork or have an older home that never had ductwork installed, you can look at an extra $1,000+ to install ductwork.

If you’re not willing to tack on the extra time or money to install ductwork, consider investing in a ductless heating system. These units push heat directly into the one room/area they serve and therefore don’t need ductwork. They are, however, typically more expensive to install than central heating options (like furnaces).

5. Comfort features

The more “comfort” features you choose, the higher the price of the furnace installation.

Just like a car, a furnace has several add-on options that increase convenience and comfort. Some comfort features that you may want to add onto your furnace include:

  • Two-stage blowers. Furnaces with two-stage blowers have two stages of heating: HIGH for cold days and LOW for mild winter weather. Comparatively, single stage furnaces have one level of heating: HIGH.

  • Variable speed heating. Furnaces with variable speed heating have unlimited stages of heating and can ramp up or down the blower depending on the specific amount of heat needed to maintain your home’s temperature.

  • Programmable thermostat. These thermostats automatically lower or raise your home’s temperature according to specific schedules that you can pre-program into the device. These thermostats, when used correctly, can save homeowners up to $180 a year in heating/cooling bills.

  • Zoned heating. Zoned heating separates your home into 2 or more heating “zones”—each controlled by their own thermostat. For example, the upstairs of a home can be set to a cooler/higher temperature than the downstairs.

6. The furnace warranty

The longer and more extensive a furnace’s warranties, the higher the upfront installation cost.

Furnace’s generally come with 2 types of warranties:

1. Manufacturer’s warranty

A furnace manufacturer’s warranty is offered by the manufacturer itself (i.e. Trane or Carrier). These warranties typically last for anywhere from 1 to 10 years. This warranty usually covers any defective parts or components of the furnace.

Homeowners can usually opt for an “extended” manufacturer’s warranty (i.e. adding an extra 5 or 10 years onto the time frame) for an extra price.

Furnace manufacturer warranties also typically cover the heat exchanger (the most expensive part) for anywhere from 20 years to the lifetime of the part.

2. Labor warranty

A furnace’s labor warranty is offered by the contractor who installs the furnace. This warranty typically lasts 1 year and covers the cost of labor for any furnace repairs within that time frame (not including the cost of replacement parts).

Depending on the contractor, the homeowner can sometimes choose to extend the labor warranty for an extra 5 or 10 years however these extensions will add onto the cost of the overall installation price.

7. The labor required to install your furnace

The bulk of the cost of a furnace installation comes from the labor required to install the heating system. The higher the quality of the contractor, the more they’ll charge.

Our suggestion? Don’t immediately jump for the lowest priced contractor. Why? Well, lower priced contractors often come with lower quality installations. And remember, your heating system accounts for a huge percentage of your utility bills. And if it’s installed incorrectly, it can make those monthly bills skyrocket. Not to mention, a poor installation always leads to more frequent expensive repairs and decreased comfort.

So, when choosing a furnace installer, make sure that they are:

  • Licensed and bonded in state of New York

  • Have been in business for at least 10 years

  • Are experienced in furnace installs and repairs

  • Relies on a load calculation to size your furnace instead of rule-of-thumbs (like only looking at square footage)

  • Have good reviews on their Yelp, Google+ and BBB profiles

Need a professional furnace installation estimate in New York?

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We’re here to help. We’ll send over an experienced and honest tech for an onsite consultation. They’ll determine what heating system is right for your needs and then offer a fair quote (without the high-pressure sales tactics).

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