Does a New HVAC System Increase Home Value?

Published by Kats Heating & Cooling on June 27, 2025

If you’re thinking about selling your home or simply investing in its future, upgrading your HVAC system could be one of the smartest moves you make. But does a new HVAC system increase home value? And how much does central air add to home value in today’s real estate market?

At Kats Heating and Cooling, we’ve helped Chicagoland homeowners maximize comfort and home equity for over 30 years. Here’s what you need to know about HVAC upgrades and home value, and how to make the most cost-effective decision for your property.

The Short Answer: Yes, a New HVAC System Can Boost Home Value

A modern HVAC system is no longer just a “nice to have.” It’s a must-have for buyers, especially in competitive markets. Upgrading your system can:

• Increase your home’s resale value
• Improve energy efficiency, lowering utility bills
• Attract more buyers with newer, eco-friendly equipment
• Speed up your time on market

According to multiple real estate surveys, a new HVAC system can increase your home’s value by 5–10%, depending on the quality of the system and regional climate demands.

How Much Does Central Air Add to Home Value?

Installing central air conditioning can be a game-changer. Central air conditioning can boost your home’s value by $5,000 to $10,000. This effect is most pronounced in warmer regions or neighborhoods where buyers expect central AC. In addition to resale value, central air also improves your home’s livability. This is a key factor when appraisers assess overall market value.

When an HVAC Upgrade Makes Sense

Not all upgrades offer the same return. Here’s when replacing your HVAC system makes the most sense.

• Your system is 10–15+ years old. Outdated units are less efficient, more likely to fail, and costlier to maintain.
• Frequent repairs are stacking up. If you’re calling for repairs every season, a new system may be more cost-effective.
• You’re switching from window units or baseboard heating. Ducted central air systems can significantly raise both comfort and home value.
• You plan to sell within 1–5 years. A new HVAC system can be a major selling point in listings and showings.

Upgrading your HVAC system under these conditions isn’t just about comfort—it’s a smart financial move. Buyers today are looking for turnkey homes with modern, energy-efficient systems, and your investment could set your property apart in a competitive market.

Cost vs. Value: What You’ll Spend, What You’ll Gain

A new HVAC system typically costs between $5,000 and $12,000. The exact cost depends on home size, unit efficiency, and ductwork needs. While this isn’t a small investment, the payoff includes:

• Higher resale value
• Lower monthly energy bills
• Greater appeal to buyers
• Fewer repair and maintenance hassles

And with Kats Heating and Cooling, you can count on affordable pricing that makes the upgrade easier on your wallet. Unlike big national chains with bloated overhead, we keep costs low and pass those savings on to you.

Final Thoughts: Is a New HVAC System Worth It?

A new HVAC system is absolutely worth it. Especially when installed strategically and with future buyers in mind. Ready to boost your home’s value with a new HVAC system? Contact Kats Heating and Cooling today for a free estimate. We’ll help you make the right move for your comfort and your bottom line.