The "best" water heater depends on your household size, budget, and energy source. However, Heat Pump (Hybrid) water heaters are generally considered the best all-around for energy efficiency, while Tankless Gas heaters are best for instant, continuous hot water.
Plumbers generally recommend professional-grade water heaters sourced from supply houses rather than retail big-box stores, as they feature thicker, heavier-duty components. The most trusted brands among professionals depend on the type of system you need:
A 40-gallon water heater is generally too small for a family of 5. Industry standards typically recommend a 60- to 80-gallon tank for this size household, though a 50-gallon tank can work if you adopt strict water-saving habits.
Tankless water heaters are generally better for long-term energy efficiency, space savings, and endless hot water, lasting 20+ years. However, traditional tank water heaters are better for lower upfront costs, easier installation, and consistent, high-volume flow, making them ideal for smaller budgets or high-demand households.
The longest-lasting water heater brands are Bradford White and Rheem (specifically the Marathon series). Bradford White is favored by plumbers for professional installations and longevity, while the Rheem Marathon uses a unique fiberglass tank backed by a true lifetime warranty.
There isn't a single "number 1" model, as the ideal water heater depends on your home's setup, but top-rated brands dominating the market include Rheem (best overall tank/tankless) and A.O. Smith (best for durability and commercial-grade units).
The Home Depot offers traditional water heater tanks and modern tankless units, both powered by either gas or electricity. Depending on your selection, the average cost for standard tank installation is generally between $1,600 to $2,400. Tankless installation can range from $2,400 to $5,400.
Plumbers often hesitate to recommend tankless water heaters because they act like high-performance sports cars. Unlike traditional tank models that are "workhorses" and can function while mostly ignored, tankless units require precise installation, regular maintenance, and are highly sensitive to mineral buildup.
For larger households, multiple showers, laundry, and dishwashing may run at the same time. Hot water demand could reach 10–12+ GPM. A high-capacity tankless water heater—or even two units installed in parallel—may be the best solution.
This problem usually comes down to capacity, heat production, or mixing issues inside your plumbing system. Sometimes the fix is simple, like adjusting your water heater temperature or flushing out sediment. Other times you may need a new mixing valve, an element replacement, or a different size water heater.
A 50-gallon water heater typically supports 3 to 4 people with standard showering habits. You can generally get 4 to 5 consecutive showers (lasting about 10-15 minutes each) before running out of hot water, though this heavily depends on your showerhead flow rate and whether it is a gas or electric model.
A 40-gallon tank water heater installation costs $700 to $2,300, with an average cost of $1,650. Prices vary based on energy source and installation complexity. The national average cost to install a 40-gallon tank water heater ranges from $700 to $2,300.
Qualifying Gas Tankless Water Heater Models
Many manufacturers offer ENERGY STAR® certified gas tankless models with 0.95 UEF ratings that meet federal tax credit requirements.
The top water heaters currently on the market include a mix of reliable tanks, efficient hybrids, and high-performance tankless options. Top picks feature smart connectivity and robust designs to suit different households:
A water heater typically lasts 8 to 12 years for traditional tank models, and 15 to 20 years for tankless models. However, the exact lifespan varies based on the type of system, local water quality, and how well the unit is maintained.
Both Rheem and Bradford White are top-tier water heater brands, but they cater to different buyers.
A tankless water heater usually goes cold mid-shower because the water flow drops below the heater's minimum activation threshold, or the system is overloaded by using too many fixtures at once. It can also happen if sediment blocks the filter or the unit is improperly sized.
If a standard showerhead is fitted, it will use around an extra half a gallon each minute, accounting for a 25-gallon emittance every 10 minutes, or 50 gallons throughout a 20-minute shower. *1 gallon = 4.54 litres.
Tankless water heaters come with a limited flow rate, meaning they might struggle to provide hot water simultaneously to multiple appliances or fixtures. If your household comprises several individuals taking showers or running appliances concurrently, you may need to invest in a larger unit.
Here are some common reasons why your tankless water heater might not be working and how you can troubleshoot these problems.
Broadly, heat pumps are the most efficient form of heating. They can be more expensive than a furnace, especially if you purchase a geothermal heat pump. However, geothermal heat pumps are one of the cleanest heating options on the market. A geothermal heat pump can produce 1/6th the CO2 of a natural gas furnace.
Because tankless water heaters are more efficient, they cost less money to operate. This can save you money in the long run since utility bills are lower than with a tank water heater. Many people find that the cost savings in energy usage eventually makes up for the higher initial cost of a tankless heater.
Stores like Home Depot and Lowe's often include removal when delivering a replacement unit. This is the most convenient option, especially if the old unit is still in place and connected.
Tank to Tank Installation: On average, replacing a gas or electric water tank with a similar model takes two to three hours. It takes between 45 to 60 minutes to drain, disconnect and remove your old water heater.
Yes, Costco sells water heaters, including traditional tank and tankless models (mostly from the brand Rheem). Rather than picking one up off the shelf, you purchase the unit and schedule a home consultation through their affiliated local contractors.