How Much Does a New Furnace Cost in Houston? [2025 Data]
Installing a new furnace in Houston costs an average of $5,064, with most new furnaces costing between $2,702 and $7,598. Total costs depend on the furnace size and type, old furnace removal costs, and more.
Installing a new furnace in your Houston home can help reduce energy costs, minimize safety risks, and prevent costly repairs.
Hire a Houston furnace installation pro to install your new furnace safely and ensure it’s up to code.
New furnace costs are based on the size and type of furnace, as well as any additional required work.
Houston’s high temps and hot climate mean most homeowners give more thought to their air conditioning than their furnace. However, temperatures in the area can drop very low, so you want to be sure your furnace is working its best. Replacing a furnace in Houston costs an average of $5,064, and most homeowners pay between $2,702 and $7,598. We break down some of the factors that affect the cost of a new furnace in Houston.
New Furnace Cost Factors
Your furnace is your home’s best defense against cold temperatures, which may be infrequent in the Houston area but still occur, so it’s best to be prepared. An old or damaged furnace can drive up your energy costs—not to mention pose serious safety risks. Here are some of the things that contribute to the price of a new furnace.
Furnace Size
The size of the furnace you’ll need depends on the size of your home. A general rule of thumb is that you’ll need a furnace with 30 to 60 BTUs, or British thermal units, for every square foot of your home. Here are some common home sizes, along with the recommended furnace size and average cost.
| Home Size | BTUs Needed | Average Cost |
|---|---|---|
| 1,000 square feet | 30,000–60,000 | $1,250–$2,100 |
| 1,500 square feet | 45,000–90,000 | $1,875–$3,150 |
| 2,000 square feet | 60,000–120,000 | $2,500–$4,200 |
| 2,500 square feet | 75,000–150,000 | $3,125–$5,250 |
| 3,000 square feet | 90,000–180,000 | $3,750–$6,300 |
| 3,500 square feet | 105,000–210,000 | $4,375–$7,350 |
| 4,000 square feet | 120,000–240,000 | $5,000–$8,400 |
| 4,500 square feet | 135,000–270,000 | $5,625–$9,450 |
| 5,000 square feet | 150,000–300,000 | $6,250–$10,500 |
Furnace Type
The type of furnace you install matters, too. Oil, natural gas, and propane furnaces may cost more to install than electric furnaces, but they may have lower monthly costs or operate more efficiently, ultimately saving you money on your energy bills. Heat pumps are also a popular option for Houston homes—they differ from furnaces in how they work, but offer an energy-efficient choice for both heating and cooling your home.
| Furnace Type | Average Cost Installed | Pros | Cons |
|---|---|---|---|
| Electric | $2,000–$7,000 | Lowest maintenance | Highest monthly energy costs |
| Natural gas | $3,800–$10,000 | Most efficient | Requires ductwork |
| Oil | $6,750–$10,000 | More eco-conscious | High fuel costs |
| Propane | $3,700–$14,200 | Low monthly costs | High installation costs |
| Heat pump | $3,800–$7,100 | Long-term energy savings | High initial cost |
Old Furnace Removal
You’ll need to remove and dispose of your old furnace before installing the new one. Your furnace installation pro should include removal and disposal in your price quote, but confirm before work gets started so you don’t have any surprise charges.
Ductwork Installation
Depending on the type of furnace and the condition of your existing ductwork, you may need to install new ductwork so your new furnace works properly. Installing new ductwork can cost $2,000 to $5,000.
Tax Credits and Rebates
Your new natural gas or oil furnace may be eligible for federal tax credits of 30% of the furnace cost, up to $600, according to EnergyStar. Check the requirements to see if your new furnace qualifies and what steps you’ll need to take to claim the credit.
Furnace Pro Costs
Just like you’d call a pro to check your HVAC system, you’ll want to hire a local furnace installation pro. Installing a furnace isn’t a DIY project—an improperly installed furnace can pose major safety risks to your home and the people in it, and some manufacturers may even void your furnace’s warranty if it’s not professionally installed.
HVAC Pro Costs
HVAC professionals in Houston charge an average of $75 to $200 per hour for labor, depending on their experience, the number of workers needed, and the type of furnace being installed. Your quote for a new furnace should include labor costs—if you aren’t sure how the bill breaks down, ask your HVAC contractor for clarification.
Permits and Fees
In Houston, you’ll need a permit to install a new furnace or make any changes to your HVAC system. Permit costs vary depending on the job cost—expect to pay 2% of the project cost plus around $80 in fees for a permit to replace your furnace. You’ll also need to have the new furnace inspected once it’s installed to confirm it meets all local codes and regulations.
Does a New Furnace Increase Home Value?
How much your furnace affects your home’s value depends on the type of furnace, expected lifespan, demand for that type of furnace and more. Natural gas and electric furnaces and heat pumps are more in demand than oil or propane, so they’ll be more of a draw when it comes time to sell your house.
Installing a new furnace and keeping up with HVAC maintenance not only makes your home more appealing to prospective buyers, but can also keep energy costs down and save you money on homeowners insurance.
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.
Want to help us improve our cost data? Send us a recent project quote to [email protected]. Quotes and personal information will not be shared publicly.
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