I'm looking to upgrade my water heating setup in my 650 sq ft apartment. Right now I have an old electric tank heater that's taking up space in my closet and the energy bills are pretty high. Would going tankless actually save money, or is it more hassle than it's worth for my situation?
Are you planning to stay in that apartment for a few more years, or is this a shorter-term situation?
For a small apartment, tankless could make sense if you stay put. The main appeal is that you'll reclaim closet space and potentially cut energy waste since you're not heating water 24/7. Most people see energy savings, though they're usually modest - maybe 10-15% depending on your usage patterns. The upfront cost is steeper than a tank replacement, and since you're renting the space, you need to check what your lease allows and whether you can take it with you if you move.
The real catch is installation. Some apartments have gas lines and decent water pressure, which makes tankless simpler. If you're all-electric or have low water pressure, you might need upgrades that eat into savings. Also, tankless heaters take a few seconds to warm up - not a dealbreaker, but worth knowing. If you're only staying another year or two, a basic tank replacement is honestly the smarter move. But if this is home for the long haul and you can handle the upfront expense, going tankless does solve your storage problem and cuts your energy footprint.
The savings question isn't straightforward for apartments - tankless units need decent water pressure and often require upgraded electrical or gas lines, which landlords frequently won't allow or will charge you for anyway. In a 650 sq ft space, you're also dealing with potential venting issues if you go gas, and electric tankless models can struggle to deliver hot water quickly to multiple fixtures simultaneously, which defeats the purpose. If you're renting, this probably isn't worth pursuing; if you own, the payback period stretches longer than most people expect because your baseline usage is already pretty low in a small unit. Better move might be insulating your current tank, lowering the thermostat a few degrees, or just replacing it with a newer efficient tank model when it finally dies.
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