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

Trying to estimate your new furnace costs in Detroit? On average, homeowners here spend around $4,295 on furnace installation. However, your total cost could be anywhere from $2,931 to $5,877, depending on your contractor’s rates, the type of furnace you install, and other factors. Here’s what you can expect to pay.

New Furnace Cost Factors in Detroit

The specifics of your furnace—including its type, size, and efficiency rating—significantly affect your furnace installation costs in Detroit. Here’s how.

Type of Furnace

Whether it’s electric, gas, or oil, the type of furnace you choose is a major cost factor in this project. Electric models are the lowest-priced option, while gas and oil furnaces cost more to install in Detroit homes.

Furnace Size

A furnace’s size is measured by its heat output, which is expressed in British Thermal Units (BTUs). Furnaces come in a range of sizes, but most residential units are between 40,000 and 120,000 BTUs. The best size for your house will depend on several factors (such as your home’s square footage and heat loss potential), but the larger the size, the more it will cost. 

If you buy a natural gas furnace (the most common type), here’s how much you can expect to spend depending on its BTUs:

AFUE Rating

In the U.S., furnaces have Annual Fuel Utilization Efficiency (AFUE) ratings, which describe how efficiently the furnace converts fuel into warm air for your home. New gas furnaces installed in Detroit must have a minimum AFUE rating of 80%—meaning that the furnace can turn 80% of the gas into heat.

Higher-efficiency furnaces use less fuel, so they’re better for your wallet and the environment. However, that extra efficiency comes at a (literal) cost. High-efficiency models (with AFUE ratings of 90% or higher) are often double the price of mid-efficiency furnaces (which have AFUE ratings of 80% to 90%).

Ductwork Replacement

During installation, your HVAC professional will check the condition of your home’s ductwork. If it’s leaky, damaged, or inefficient, they’ll likely suggest replacing it. In Detroit, a typical ductwork replacement job costs between $382 and $914.

Furnace Removal

If you need to get rid of your old furnace, most HVAC pros will remove and dispose of it for an extra fee (usually between $100 and $400). You should see this listed in your quote. If you don’t, ask your contractor about it.

HVAC Pro Costs in Detroit

On top of the furnace and ductwork, there are a handful of other factors that will influence your furnace installation costs. These include: 

Licensing and Certification

In Detroit, HVAC professionals must be licensed by the city’s Buildings, Safety Engineering, and Environmental Department (BSEED) and the Michigan Department of Licensing and Regulatory Affairs (LARA).

For any type of HVAC project (including furnace installation), you should consider hiring a NATE-certified technician. This is an optional certification, but if your contractor has one, it means they’ve worked in the field for at least two years and passed a series of rigorous exams to verify their knowledge.

Permits

To install a new furnace in the Motor City, you’ll need a mechanical permit and an electrical permit. Your HVAC pro in Detroit should obtain the permits and include the cost in their project quote. In total, you can expect to spend several hundred dollars on the permits themselves and any fees your pro charges for pulling them.

Rebates

As a DTE Energy customer, you may be eligible for a rebate after installing a high-efficiency natural gas furnace. Rebate amounts vary according to the unit’s AFUE rating: 

You can also get a $75 rebate from DTE Energy for scheduling a professional furnace tune-up. To qualify, you must use natural gas as your primary heating source, and your furnace must have a minimum capacity of 40,000 BTUs.

Does Installing a Furnace Increase Home Value in Detroit?

To get through Detroit’s frigid and snowy winters, having a good heating system is essential. It’s also something that buyers will look for when shopping for their next home. For this reason, installing a new furnace can increase your home’s worth in the eyes of buyers—especially if it’s a high-efficiency unit (with an AFUE rating of at least 90%).

However, if you’re upgrading the heating side of your HVAC system, you might consider revamping the cooling part, too. Together, a new furnace and air conditioner can raise your property’s value by between 5% and 7%.

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 survey 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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