How Much Does a New Furnace Cost in San Francisco? [2025 Data]

New furnace costs in San Francisco average $5,079, and most projects total between $3,047 and $7,200. Your cost will depend mostly on the square footage of your home, which dictates furnace size, and the fuel type you choose. San Francisco just recently passed legislation to phase out gas furnaces, so consider installing an electric one to stay ahead of the shift.

New Furnace Cost Factors

While most San Francisco residents pay between $3,047 and $7,200 for a new furnace, prices can climb as high as $13,085. There are a few factors to consider to determine where in this wide range your total will fall.

Home Size

Furnaces have different output capabilities, measured in British thermal units (BTUs). The BTUs you need for adequate heating depend primarily on your home size and climate. In the mild San Francisco climate, on average, you need between 40 and 45 BTUs per square foot of living space.

The average home in San Francisco is 1,650 square feet, which means most homes in the area will need furnaces with outputs of between 66,000 and 74,250 BTUs. A furnace of this size will cost between $2,600 and $3,200 for the unit alone, excluding installation labor.

You can use the table below to get an idea of where your new furnace costs in San Francisco will fall based on home size, but you should always have a professional size your HVAC system for you. Square footage is the primary factor for sizing, but a pro will also consider other factors, like ceiling height, home age, insulation quality, sun exposure, and more.

Fuel Type

The type of furnace you install will also affect your pricing. Most furnaces in San Francisco currently use either natural gas or electricity as a fuel source. Installing a new gas furnace in San Francisco costs twice as much as installing a new electric furnace. Oil and propane furnaces are rare in the area, and these cost even more than gas furnaces.

It’s important to note that San Francisco recently passed legislation that will phase out gas furnaces and force homeowners to go electric. Installations before 2027 can still include gas furnaces, but as of January 1, 2027, all furnaces in the city must be electric.

Efficiency

Efficiency ratings play an important role in furnace installation costs, no matter where you live, but especially in California, where there are strict efficiency standards all homeowners must comply with.

Furnaces come with an annual fuel utilization efficiency (AFUE) rating, which tells you how efficiently the equipment will heat your space based on energy consumption. Furnaces with higher AFUE ratings will cost more upfront, but they can save you money on running costs over time. This is especially true if you opt for an electric furnace in San Francisco, as electricity costs in California are higher than in any other state except Hawaii. Additionally, high-efficiency furnaces may qualify for the federal tax credit, which effectively reduces your costs by up to 30%. Look for local incentives, too, like the $115 to $1,000 rebate from SoCalGas for Energy Star-certified furnaces.

California has stricter furnace efficiency minimums than most states. Gas furnaces must have an efficiency of 80% AFUE or higher, and oil furnaces must have an efficiency rating of 78% AFUE or higher.

Old Furnace Removal

Some local furnace installers will include the cost of removing your old furnace and hauling it away for you. If yours doesn’t, you’ll need to budget an additional $100 to $400 for the service.

You may also need to budget for additional work if you’re switching fuel types, as most homeowners are in San Francisco, given the recent legislation that’s set to ban gas furnace installation. You should expect to pay an additional $150 to $300 to cap the old gas line if you’re switching from gas to electric.

HVAC Pro Costs

Hiring an HVAC pro in San Francisco, California, is expensive, as labor will cost an average of $2,000 and fall between $1,500 and $4,000 for most homeowners. This is close to double what you’d pay in most other cities, as the cost of living in San Francisco is more than 90% higher than the national average and drives labor costs up significantly.

While you’re considering labor costs, you should also think about permit costs, which your installer will pass on to you. The City of San Francisco charges a flat fee of $192.55 for furnace installation in a single-family residence, so be sure to account for that cost when budgeting.

Does a New Furnace Increase Home Value?

Installing a new furnace will increase your home value, as buyers will be willing to pay more for a home that’s less likely to have major problems and mechanical issues after closing. The average return on investment (ROI) for a new furnace is 30%, putting the average value bump in San Francisco at a little over $1,500.

The new legislation passed in San Francisco outlawing gas furnaces means that all new furnaces after 2027 will need to be electric. If you’re installing a new furnace before then, it makes sense to make the switch now. Not only will an electric furnace cost about half as much as a gas one, but buyers will prefer an electric furnace, as it means they won’t have to worry about the conversion themselves if and when they go to replace the HVAC system down the road.

How Angi Gets Its Cost Data

Home is the most important place on earth, which is why Angi has helped more than 150 million homeowners transform their houses into homes they adore. To help homeowners with their next project, Angi provides readers with the most accurate cost data and upholds strict editorial standards. We’ve surveyed thousands of real Angi customers about their project costs to develop the pricing data you see, so you can make the best decisions for you and your home. We pair this data with research from reputable sources, including the U.S. Bureau of Labor Statistics, academic journals, market studies, and interviews with industry experts—all to ensure our prices reflect real-world projects. 

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