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Water heater replacement: repair or replace?

Repair when the fix is small and the unit is fairly new. Replace when the tank itself leaks or the unit is near the end of its typical 8–12 year life (This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; Home Depot data)).

Repair is usually right when

• The problem is a pilot, thermocouple, element, thermostat or valve. These often cost $150–$500 (This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; Home Depot data)).
• The leak is at a fitting or valve, not the tank.
• The unit is well within its expected life (tanks: 10–15 years per U.S. DOE Energy Saver, "Which Water Heater Is Right for You?").

Replacement is usually right when

• Water is leaking from the tank body or pooling at the base.
• You see rusty water or rust on the tank.
• You've had several repair calls in a year.
• The unit is near the end of a tank's typical 8–12 year life (This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; Home Depot data)).

If you replace

Decide between a like-for-like tank, a tankless unit or a heat pump tank, check the replacement cost guide, and make sure the job includes a permit and earthquake strapping (California Health & Safety Code §19211 (water heater bracing); City of San Diego, Plumbing/Gas Permit).

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Sources

• This Old House, "How Much Does Water Heater Installation Cost?" (updated 06/17/2026; Home Depot data) (checked October 22, 2026)
• U.S. DOE Energy Saver, "Which Water Heater Is Right for You?" (checked October 22, 2026)
• California Health & Safety Code §19211 (water heater bracing) (checked October 22, 2026)
• City of San Diego, Plumbing/Gas Permit (checked October 22, 2026)