Why More LA Homeowners Are Switching to Tankless Water Heaters in 2025

A person adjusting a tankless water heater

Is your energy bill creeping up despite cutting back on usage? You’re not alone. In 2025, Los Angeles homeowners are feeling the pinch from rising utility rates. That’s pushed many households to rethink how they heat water—and tankless water heaters are taking center stage.

At Lords of Plumbing, we’ve seen a noticeable increase in requests for tankless water heater installation and repair services across the city. Homeowners are asking for solutions that are efficient, compact, and cost-effective—and tankless systems check all the right boxes.

In this blog, we’ll explain why tankless water heaters are gaining popularity, how they help reduce energy consumption, and why now is the time to consider making the switch.

Why Traditional Water Heaters Are Falling Out of Favor

Conventional water heaters store hot water in a tank and keep it warm 24/7—whether you’re using it or not. That means standby energy loss, limited hot water supply, and bulky equipment taking up space in already tight LA homes.

Common issues with tank-style heaters:

  • Higher monthly utility bills due to constant reheating
  • Running out of hot water during back-to-back showers
  • Lifespans often capped at 10-12 years with regular maintenance
  • Takes up valuable garage or closet space

With more people working from home and using water throughout the day, inefficiencies are becoming harder to ignore.

The Benefits of Switching to a Tankless Water Heater

Tankless water heaters, also known as on-demand systems, heat water only when you need it. That simple difference creates several key advantages:

1. Improved Energy Efficiency

Tankless systems use 24–34% less energy for homes that use less than 41 gallons of hot water daily, according to the U.S. Department of Energy. That translates into long-term savings—something LA homeowners are increasingly prioritizing in 2025.

2. Endless Hot Water Supply

Since these systems heat water as it flows through the unit, there’s no tank to empty. Whether you’re running the dishwasher and shower simultaneously or hosting guests, you get continuous hot water.

3. Space-Saving Design

A tankless water heater is typically mounted on the wall and takes up significantly less room than traditional models. That’s especially helpful in compact homes, apartments, and ADUs across Los Angeles.

4. Longer Lifespan

Most tankless models last up to 20 years with proper care, almost double the life of a traditional tank system. And when repairs are needed, tankless water heater repair is generally straightforward and localized to specific components.

Why Demand Is Rising in 2025

Several local and statewide changes are accelerating this shift:

  • New Energy Efficiency Standards:California’s Title 24 regulations are pushing for more energy-efficient appliances in residential buildings.
  • Utility Rate Increases:Rising natural gas and electricity costs make energy-efficient upgrades a financially smart move.
  • Smaller Living Spaces:With the growing popularity of ADUs and smaller homes in LA, space-saving solutions like tankless water heaters are in high demand.

These factors combined are making tankless water heater installation a common request from homeowners looking to modernize their plumbing systems.

Thinking About Making the Switch?

Is it time to replace your old tank unit with something more efficient and future-proof? Whether you need tankless water heater repair or want to install a new one from scratch, working with a reliable plumbing company is essential.

Lords of Plumbing is one of the most trusted names for tankless water heater installation in Los Angeles. We also provide dependable tankless water heater repair services and help you choose a system that fits your home’s specific needs. Our licensed plumbers understand the unique plumbing challenges of LA homes—from older structures to newer builds—and provide clear, straightforward service every step of the way.