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The Benefits of Tankless Water Heaters: Is It Right for Your Home?

Tankless hot water heater mounted on wall of home
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Is it almost time for a new water heater? You may be considering changing to a tankless, sometimes called “on demand” water heater, and maybe even wondered if they’re worth the investment.

We often get asked: Is a tankless water heater better than a traditional one?

The short answer? It depends on your home, your water usage, and what matters most to you. But the long answer comes with some exciting benefits.

What Is a Tankless Water Heater, Anyway?

A traditional water heater stores and heats a big tank of water (typically 40–50 gallons) so it’s ready whenever you need it. A tankless water heater, on the other hand, heats water only when you turn on the tap. There’s no storage tank, just a powerful heat exchanger that kicks on instantly to warm the water as it flows through.

No tank. No standby energy loss. Just hot water when you need it.

So, Why Go Tankless? Here Are the Big Benefits:

1. Endless Hot Water

If you’ve ever been the last person in your household to shower in the morning (and got stuck with cold water), you’ll love this feature.

Because tankless systems heat water on demand, you’re not limited to the size of a tank. You could technically take a 45-minute shower (not that we recommend it!) or run the dishwasher, washing machine, and shower all at once without running out of hot water. It’s especially helpful for larger families or homes with high water usage.

2. Energy Efficiency (And Lower Utility Bills)

Traditional water heaters keep a tank of water hot 24/7, even when you’re not using it. That’s called standby heat loss, and it costs you money every month.

Tankless water heaters only use energy when you actually need hot water. That can significantly reduce your utility bills over time. That kind of savings adds up, especially in cold Iowa winters when your water heater works overtime.

3. Longer Lifespan

On average, traditional water heaters last about 8–12 years. Tankless water heaters? With proper maintenance, they can last 15–20 years.

That’s nearly double the lifespan, which means fewer replacements and more value over the long haul. It also makes tankless systems a great investment if you’re planning to stay in your home for years to come.

4. More Space in Your Utility Room

If your water heater takes up a huge chunk of your basement or utility room, you’ll appreciate how compact a tankless unit is. Most are mounted on the wall and take up far less space.

This is great for smaller homes, remodels, or anyone looking to declutter and simplify their home systems.

5. Cleaner Water, Less Risk of Leaks

Over time, traditional tank water heaters accumulate rust, scale, and sediment at the bottom of the tank, especially in areas like eastern Iowa where we have hard water.

Tankless systems don’t store water, so you’re less likely to deal with that buildup. That means cleaner water and a lower risk of tank leaks or ruptures (a common cause of water damage in older units).

Is a Tankless Water Heater Right for Every Home?

Not always. Like any home improvement, there are pros and cons to consider.

Here’s when a tankless water heater might not be the best fit:

  • Upfront Cost: Tankless systems tend to cost more than traditional units, both for the equipment and installation. It’s an investment, but one that can pay off in energy savings over time.
  • High Hot Water Demand: If your household regularly uses hot water in multiple places at once, a single tankless unit may not keep up unless sized properly. (Good news: we help with that.)
  • Retrofitting May Require Upgrades: If you’re switching from a tank to tankless, your home may need upgrades to the gas line, venting, or electrical system. We’ll walk you through what’s needed and give you a clear estimate before we begin.

What to Consider Before Making the Switch

Still not sure if tankless is right for your home? Ask yourself:

  • How often do we run out of hot water?
  • Are we trying to reduce our energy use?
  • Do we plan to stay in this home for a long time?
  • Are we already planning a bathroom renovation or system upgrade?

If you answered yes to any of these, a tankless system might be the upgrade your home needs.

We Can Help You Decide

At Ackerman Plumbing, we’ve installed both traditional and tankless water heaters across Iowa City, Coralville, North Liberty, and the surrounding areas. We don’t believe in one-size-fits-all solutions. We believe in what works best for you.

When you call us, we’ll:

  • Assess your home’s hot water usage
  • Recommend the right-sized system
  • Walk you through costs and benefits
  • Handle expert installation (no guesswork)

We’re here to make the decision easier, not harder.

Ready to Upgrade to Tankless?

If you’re tired of cold showers, rising energy bills, or bulky old tanks, it might be time to switch to a tankless water heater. Give Ackerman Plumbing a call or schedule service online today.

We’ll help you find the right fit and keep your hot water flowing efficiently, endlessly, and reliably.