The current surge in air conditioning prices is due to a complex combination of global factors. The pandemic, supply chain bottlenecks, the booming housing market, labor market restrictions, and even the war in Ukraine are all contributing to the rising cost of HVAC systems. In highly sought-after real estate markets, such as Toronto, buyers often make unconditional offers, which increases the likelihood of discovering major issues with the heating or cooling system and necessitates a quick solution. The conflict in Ukraine has certainly exacerbated supply and price pressures that can have an indirect effect on the availability and cost of air conditioning systems.
But there is another factor that makes current heating and cooling needs heavily dependent on the weather: climate change and the extreme weather events occurring in many parts of North America. The new SEER2 regulations will result in higher prices for new systems, as well as increased costs for old SEER equipment and parts. Last year, many consumers opted to invest in their homes, one of which was to upgrade their air conditioning equipment. Meeting higher standards means total costs will be up to 30 percent higher for new HVAC equipment next year.
With people struggling to purchase the home they want and having to adjust their monthly budgets accordingly, major services such as air conditioning systems may become a secondary priority. The cold housing market may be alarming for Canadians who recently bought homes or investment properties, but it can actually have a positive impact on HVAC system prices in a big way. This serves to monopolize the links in the supply chain of highly technical materials used in air conditioning products, as well as driving up their prices. The contractor's top priority should be to maximize a system's lifespan, but if a new system is needed, consider these new regulations, the initial additional cost they bring after the new year, and the potential lower monthly operating costs they could entail.
Then call a certified heating and air conditioning technician to assess it. The most important thing to keep in mind when getting an HVAC system quote is that the cost is made up of several components and factors. It would be great if there was just one factor driving these price increases for air conditioning systems (after all, it's much easier to solve one problem). It's no secret that HVAC prices have risen significantly over the past two years.
But why? In this article, we'll explore all of the factors that are contributing to this increase in cost so you can make an informed decision when it comes time to purchase or upgrade your HVAC system.
What Factors Are Driving Up HVAC Prices?
The pandemic has had a huge impact on global supply chains. This has caused shortages of certain materials used in HVAC systems, resulting in higher prices for those materials. Additionally, labor shortages due to restrictions on movement have caused delays in production and installation of HVAC systems. The booming housing market has also had an effect on HVAC prices. In highly sought-after real estate markets like Toronto, buyers often make unconditional offers which increases the likelihood of discovering major issues with the heating or cooling system and necessitates a quick solution. The conflict in Ukraine has also exacerbated supply and price pressures that can have an indirect effect on the availability and cost of air conditioning systems. Finally, climate change and extreme weather events occurring in many parts of North America are making current heating and cooling needs heavily dependent on the weather.What Are SEER2 Regulations?
SEER stands for Seasonal Energy Efficiency Ratio.It is a measure of how efficient an air conditioner is at cooling a given space over a season. The higher the SEER rating, the more efficient the unit is at cooling your home or business. The new SEER2 regulations will result in higher prices for new systems, as well as increased costs for old SEER equipment and parts. This means that total costs will be up to 30 percent higher for new HVAC equipment next year.
What Should You Do If You Need To Purchase or Upgrade Your HVAC System?
If you're struggling to purchase the home you want or having to adjust your monthly budget accordingly, major services such as air conditioning systems may become a secondary priority. However, if you do need to purchase or upgrade your HVAC system, there are some things you should consider.- Consider the new regulations and initial additional cost they bring after the new year.
- Look into potential lower monthly operating costs they could entail.
- Call a certified heating and air conditioning technician to assess your needs.
Conclusion
HVAC prices have risen significantly over the past two years due to a combination of global factors such as pandemics, supply chain bottlenecks, booming housing markets, labor market restrictions, climate change and extreme weather events occurring in many parts of North America.The new SEER2 regulations will result in higher prices for new systems as well as increased costs for old SEER equipment and parts. When getting an HVAC system quote it's important to remember that there are several components and factors that make up its cost. Consider all these factors before making your decision so you can get the best value for your money.