Should you repair or replace? Run your numbers
Client-side, nothing sent anywhere. Uses the same arithmetic a good contractor uses.
What does HVAC installation cost in these five metros?
Installed, permitted, typical ranges. Labor rates run highest in Los Angeles and Miami, lowest in Houston and Dallas; Phoenix is mid. Equipment tier moves the number more than the city does.
| Central AC (condenser + coil) | Gas furnace | Heat pump (split) | Full system (AC + furnace) | |
|---|---|---|---|---|
| Builder grade, 14–15 SEER2 | $4,500–$7,500 | $3,500–$5,500 | $5,500–$9,000 | $8,000–$13,000 |
| Mid, 16–18 SEER2, two-stage | $7,000–$11,000 | $5,000–$8,000 | $8,500–$13,000 | $12,000–$18,000 |
| Variable-speed / inverter | $10,000–$16,000 | $7,000–$11,000 | $12,000–$20,000 | $17,000–$27,000 |
| Ductless mini-split | $3,000–$5,000 per zone single-zone; $2,500–$4,000 per zone on multi-zone systems. No ducts, no duct losses. | |||
| Adds that change the number | New line set $500–$1,500 · electrical upgrade $500–$2,500 · duct repair or replacement $2,000–$8,000 · permit $150–$600 depending on the city · crane for rooftop units (Phoenix, LA commercial) $300–$800 | |||
What does a proper HVAC installation involve?
- Manual J load calculationRoom-by-room heat gain and loss for your house — not "same size as the old one." Oversizing is the most common installation error in hot-humid metros; it short-cycles and never dehumidifies.
- Equipment matchCondenser, coil and air handler as an AHRI-rated match. Mismatched components lose efficiency and sometimes warranty.
- Ductwork assessmentStatic pressure test. New equipment on undersized or leaking ducts underperforms from day one. LA and Dallas attic duct systems are the usual problem.
- PermitHouston, Dallas, Miami-Dade and Los Angeles require a mechanical permit for a system replacement (LA issues it as an express permit when size and type stay the same). Phoenix is the exception: a like-for-like replacement that does not increase capacity or move the unit is exempt, but a resize or relocation is not. A contractor who skips a required permit is saving themselves time at your expense — inspections catch refrigerant, electrical and venting errors.
- Installation and commissioningEvacuation to 500 microns, charge by subcooling, airflow verified, thermostat configured for the system type. Commissioning is where the efficiency you paid for actually shows up.
- Rebates and creditsThe federal 25C energy-efficient home improvement credit covered property placed in service through December 31, 2025 and is not available for 2026 installations — do not let a quote assume it. What remains is utility money: it varies by metro, is usually paid through a participating contractor, and changes yearly. The metro pages below name each program.
Heat pump
Heats and cools with one outdoor unit. In these five metros — all with mild winters — a heat pump is usually the right answer and the cheapest to run. Cold-climate models hold full output to 5°F, which is far colder than any of these markets see.
Gas furnace + AC
Two pieces of equipment. Makes sense where gas is cheap and there's an existing furnace in good shape. Dallas and Houston have gas; Phoenix and LA mixed; Miami rarely.
Dual fuel
Heat pump above a set outdoor temperature, furnace below. Best efficiency in mixed climates, highest upfront. Overkill for Miami and Phoenix; reasonable in Dallas.
The thermostat that comes with it
New equipment often means a new thermostat, and heat pumps in particular need the right one configured the right way. The wires at the wall, what each does, and the one that gets set backwards most often:
- R24 V powerRc / Rh from the transformer
- CCommonthe one most often missing on an old install
- YCompressorY2 calls the second stage
- GFanblower only, no heat or cool
- W2Aux / stripsexpensive if it is doing all the work
- O/BReversing valveO = energize on cool (Carrier, Trane, Goodman, Lennox) · B = on heat (Rheem, Ruud)
The expensive quiet mistake: a heat pump configured as "conventional" heats with the strips only. Nothing looks broken; the bill triples. Ask the installer to show you the system-type setting before they leave.
What every HVAC installation quote must include
- A load calculation for the house, not a rule of thumb — the number that sizes the new system
- The SEER2 rating and AHRI match for the air conditioner or heat pump being installed, so the rebate and the warranty both apply
- Ductwork: a static-pressure test on the existing ducts, and the repair or replacement line if they fail it
- The permit, pulled by the contractor, and the inspection scheduled
- Cost, itemized: equipment, labor, ductwork, electrical, permit, and the HVAC installation rebate taken off the invoice
HVAC installation questions, answered
How much does HVAC installation cost?
Installed and permitted: a builder-grade central AC from about $4,200, a mid-tier heat pump $8,500–$13,000, a variable-speed full system up to $27,000. Los Angeles and Miami run highest, Houston and Dallas lowest. Equipment tier moves the number more than the city does.
Should I repair or replace my air conditioner?
Past ten to fifteen years, get both quotes. A compressor, a heat exchanger or an R-22 recharge usually loses to a new system once the efficiency saving and the utility rebate are counted. The calculator above does the arithmetic with your numbers.
Are there rebates on a new HVAC system in 2026?
Utility rebates, yes: CenterPoint from $200 in Houston, SRP Cool Cash up to $1,125 in Phoenix, Oncor incentives through participating providers in Dallas, FPL's instant $200 in Miami, LADWP up to $2,500 per ton on a heat pump inside the City of Los Angeles. The federal 25C tax credit ended for equipment placed in service after 2025.
Do I need a permit to replace an HVAC system?
In Houston, Dallas, Miami-Dade and Los Angeles, yes, a mechanical permit pulled by the contractor. Phoenix exempts a like-for-like replacement that keeps the same capacity and location.
What is a Manual J load calculation and why does it matter?
A room-by-room calculation of how much heating and cooling the house actually needs. Without it installers size by rule of thumb, and an oversized unit in a humid metro cools fast, shuts off early and never dehumidifies.
Is a heat pump or a gas furnace better for these metros?
For most homes in these five metros a heat pump is the right answer: mild winters, one piece of equipment, and the largest rebates. Dual fuel makes sense in Dallas, and a gas furnace makes sense where a sound one is already in place.
How long does an HVAC installation take?
A change-out is usually one day. A first installation with new ducts and electrical runs two to three days. Rooftop packaged units in Phoenix need a crane, which is booked about a week out.
What should be on the installation quote?
The load calculation, the AHRI match number for the equipment, the permit, the duct work or a static-pressure test, commissioning steps, and the rebate the contractor will apply. A quote missing those is a price for a box, not an installation.
HVAC installation by metro
Each city page covers local climate, permits, utility rebates and the failure modes specific to that market. Each metro page covers HVAC installation cost, the air conditioner and heat pump SEER2 tiers, the ductwork line on the quote, and the utility rebate that applies to a new system there.
References: ENERGY STAR certified products · US Department of Energy · ACCA Manual J · AHRI directory
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