Does Air Source Heat Pump Add Value to Your House?

Air source heat pumps can add significant value to your house, with studies showing an average price premium of $10,400 to $17,000 for households in nearly half of the U.S. states. This is due to the increased desirability and energy efficiency that heat pumps offer, as they not only provide an energy-efficient source of heating and cooling but also help reduce carbon emissions.

Understanding the Benefits of Air Source Heat Pumps

Air source heat pumps are becoming increasingly popular as the demand for cooling increases and policies focus on electrifying important aspects of the economy, such as furnaces and boilers that still burn natural gas to heat homes. This trend is likely to continue, making heat pumps a valuable investment for homeowners looking to increase the value of their properties.

Increased Energy Efficiency

Air source heat pumps are highly energy-efficient, typically achieving a Seasonal Energy Efficiency Ratio (SEER) of 16-22, which is significantly higher than traditional HVAC systems. This means that for every unit of energy used, air source heat pumps can provide 16-22 units of heating or cooling, resulting in lower energy bills and a reduced carbon footprint.

Improved Comfort

Air source heat pumps provide both heating and cooling, allowing for precise temperature control and improved comfort throughout the year. They can also be integrated with smart home technology, enabling remote control and optimization of the system for maximum efficiency and comfort.

Longer Lifespan

Air source heat pumps typically have a longer lifespan compared to traditional HVAC systems, with an average lifespan of 15-20 years. This can provide long-term cost savings and reduce the need for frequent replacements, making them a more attractive investment for homeowners.

Reduced Carbon Footprint

By using electricity instead of fossil fuels, air source heat pumps can significantly reduce the carbon emissions associated with heating and cooling a home. This aligns with the growing demand for eco-friendly home features, making them more appealing to environmentally conscious buyers.

Factors Affecting the Value Added by Air Source Heat Pumps

does air source heat pump add value to your houseImage source: Flickr

The value that a heat pump can add to a property can vary depending on several factors, including:

  1. Energy Efficiency: More energy-efficient heat pumps, such as those with higher SEER ratings, can provide greater value to the property.
  2. Type of Heat Pump: Different types of air source heat pumps, such as ductless mini-splits or central systems, may have varying impacts on property value.
  3. Location and Climate: The value added by a heat pump may be more significant in regions with mild climates or where heating and cooling costs are high.
  4. Property Characteristics: The size, age, and overall condition of the property can influence the value added by a heat pump installation.

Calculating the Return on Investment

When considering the installation of a heat pump, it’s important to weigh the upfront costs against the potential return on investment. While the initial installation cost can be high, the price premium gained through the installation is often larger than the cost, providing an additional incentive for homeowners.

To calculate the potential return on investment, consider the following factors:

  1. Installation Costs: Obtain quotes from reputable HVAC contractors to understand the full cost of the heat pump installation, including any necessary upgrades or modifications to the existing system.
  2. Energy Savings: Estimate the potential energy savings based on your current energy usage, the efficiency of the heat pump, and local utility rates. This can help determine the long-term cost savings.
  3. Property Value Increase: Research the average price premium for homes with air source heat pumps in your local market to estimate the potential increase in property value.
  4. Incentives and Rebates: Check for any available federal, state, or local incentives or rebates that can offset the upfront installation costs.

By carefully considering these factors, you can make an informed decision on whether the installation of an air source heat pump is a wise investment for your property.


In summary, air source heat pumps can add significant value to a property, both in terms of monetary value and other benefits such as lower energy bills and a reduced carbon footprint. While the upfront cost of installation can be high, the long-term benefits and potential return on investment make heat pumps a smart investment for homeowners looking to increase the value of their properties.