How Installing a Heat Pump In 2025 Can Boost Your Home’s Resale Value
Is Installing A Heat Pump Worth It In 2025?
In today’s real estate market, energy efficiency is more than a trend—it’s a priority. Homebuyers are actively seeking properties that not only feel good to live in but also cost less to run and align with sustainable values. One upgrade that continues to gain momentum is the installation of a heat pump. But how much of a difference does it actually make in resale value?
Let’s take a look at the real data—and why homeowners across the country are turning to this smart investment.
What Is a Heat Pump?
Heat pumps are systems that both heat and cool your home by transferring heat rather than generating it. That makes them incredibly efficient compared to traditional furnaces or baseboard heaters. There are two main types:
Air-source heat pumps: Extract heat from the air.
Ground-source (geothermal) heat pumps: Pull heat from the ground.
In most climates, air-source heat pumps are popular because they’re easier and less costly to install—while still providing strong year-round performance.
Real Estate Data: The ROI of a Heat Pump
Several recent studies and market insights have shown a clear link between heat pump installations and higher home sale prices:
University of Maryland Study
Homes with air-source heat pumps sold for 4.3% to 7.1% more, averaging an increase of $10,400 to $17,000. This was consistent across a broad set of housing markets in 23 U.S. states.ENERGY STAR Findings
Energy-efficient homes, including those with certified heat pumps, sold for 2% to 8% more than similar homes without such upgrades.BestHeatPumpPro Research
Installing a heat pump boosted home resale value by 1.7% to 3%, with a noticeable appeal to buyers seeking lower energy bills and environmental benefits.
Why Heat Pumps Increase Resale Value
Here’s why buyers are willing to pay more for homes with heat pumps:
1. Lower Utility Bills
Heat pumps use electricity far more efficiently than oil, propane, or electric resistance systems. This translates into significant savings—a major selling point for buyers.
2. Sustainability
Homeowners are becoming more environmentally conscious. Heat pumps reduce carbon emissions and often qualify for green home certifications.
3. Year-Round Comfort
Heat pumps offer both heating and air conditioning, providing seamless climate control in a single unit—especially attractive in regions with four seasons.
4. Government Incentives
Federal and state incentives (like those from the Inflation Reduction Act) provide rebates and tax credits for energy-efficient upgrades, including heat pumps. Buyers know these systems offer long-term value.
Things to Consider Before Installing
While the value gains are real, here are a few important factors to weigh:
Installation Costs
Depending on system size and type, expect to pay $8,000 to $17,000 for a quality heat pump installation.Climate Suitability
Heat pumps perform best in moderate climates, though cold-climate models now work well even in northern states like Maine and Vermont.Market Saturation
As heat pumps become more common, their impact on resale value may level out. However, for now, they still offer a competitive edge.
Final Thoughts: Is a Heat Pump Worth It?
In a housing market where buyers prioritize comfort, savings, and sustainability, a heat pump checks all the boxes. Not only can it raise your home’s value, but it can also make your property more attractive to a wider pool of buyers.
If you're planning to sell your home—or just want to invest in upgrades with solid ROI—installing a heat pump is a smart move that pays off in multiple ways.
Ready to explore heat pump options for your home? Contact us for personalized recommendations or a free quote tailored to your region and home size.