Why HVAC Prices Are on the Rise in 2025

The cost of HVAC systems has increased exponentially in the last three to five years, and with new mandates on the horizon, the costs will continue to grow in 2025. From new EPA mandates to labor shortages, various factors are driving these price increases in the industry.

Here, the HVAC experts at Absolute Plumbing, Electrical, Heating & Air discuss the main reasons the cost of HVAC systems continues to rise and considerations homeowners should make when determining whether to repair or replace their current system.

Major Changes Impacting the Price of HVAC Systems

Historically, any changes or issues in the HVAC industry have trickled down to create higher consumer prices. In 2025, these five main factors are driving prices up:

• Environmental regulations: While the Department of Energy implements stricter energy efficiency standards, the Environmental Protection Agency has required the industry to switch to R-454B, a more eco-friendly refrigerant.
• Raw material costs: The pandemic saw a rise in the cost of raw materials like copper, steel, and aluminum, and an increase in the cost of producing components like compressors and refrigerants. While the prices eventually dropped, the price for homeowners has stayed steady.
• Labor shortages: The demand for certified and capable HVAC manufacturing professionals has outpaced supply, especially as the increasing complexity of modern HVAC systems requires more specialized skills. This labor shortage has ultimately led to higher wages.
• Higher market demands: An increased demand for eco-friendly, high-tech systems has led to overall price increases as brands have switched to more sophisticated components. 
• General inflation: Both inflation and interest rates impact HVAC equipment prices, as the rising cost of running manufacturing facilities is passed down to customers. 

What’s the Difference Between R-410A & R-454B?

While both R-410A and R-454B don’t deplete the ozone, they have vastly different Global Warming Potentials (GWP). The GWP of R-410A is 2,088, while the GWP of R-454B is only 466. This makes this new refrigerant much more environmentally friendly.

However, as the industry completes all necessary training, research, and development to switch from R-410A to R-454B, the cost of heating and AC systems will rise.

How To Prepare for These Changes

As things in the HVAC industry prepare to shift in 2025, we recommend that homeowners take these steps to prepare:

• Evaluate your current HVAC system and consider replacement sooner rather than later.
• Schedule an HVAC inspection to help determine if your system is on its last legs.
• Weigh the pros and cons of a newer, more efficient system that requires a larger upfront investment but will save you money in the long run.
• Consider upgrading now while some R-410A systems are still available.

Should I Buy a New HVAC System Now?

Ultimately, now is a good time to buy a new HVAC system. By purchasing today, homeowners will experience:

• Cost savings: Some R-410A systems may still be available. Purchasing now will help you get one at a lower price.
• Simple service: For systems that have already shifted to R-454B, you can trust that you’ll have easy access to parts and services for years.
• Improved comfort: Choosing to replace now will ensure that your comfort isn’t compromised, especially if your current system is underperforming.
• Increased energy efficiency: Systems with the new refrigerants are more energy-efficient and can help you experience long-term savings.

Schedule HVAC Installation Today

If you’re ready to upgrade your HVAC system, contact Absolute Plumbing, Electrical, Heating & Air to schedule an appointment with our team. As Denver’s top-rated home service company since 2012, we’re proud to offer friendly, professional service backed by a satisfaction guarantee.

Our knowledgeable team can help you choose the best HVAC system for your home and family.

Contact Absolute Plumbing, Electrical, Heating & Air today to schedule an HVAC replacement in Denver, CO.