Want to Boost Your Home’s Resale Value? Install a Heat Pump

Would you pay more for a home with a heat pump?

You can bet I would.

I’d gladly fork over more money to bypass a gas or oil furnace, which—unlike an all-electric heat pump—spews toxic combustion byproducts, runs the risk of poisoning my family with carbon monoxide, and contributes to climate change. And while heat pumps, which provide both heating and cooling, typically cost more up front than conventional furnaces, they’re two to four times as efficient, and so could save me money in the long run.

Apparently, I’m not alone in prizing the comfort, safety, and economic benefits of these appliances.

Heat pumps give home values a boost, according to a new report by the nonprofit Smart Energy Consumer Collaborative, which studies consumer behaviors, interests, and concerns in the energy transition; 257, a customer-intelligence platform that profiles US. residential property characteristics for contractors, utilities, and others; and the trade group the National Association of Realtors. Their analysis showed that homeowners who install a heat pump can recoup up to a quarter of its cost just by mentioning it in real estate listings when they’re ready to sell.

While some homeowners may invest in a heat pump for its environmental bona fides, for most people, economics trumps all, said Scott Rosenberg, a cofounder and chief executive officer of 257. ​“A homeowner who puts a garage on, redoes their bathroom, improves their kitchen, always thinks, ​‘Am I going to get this value back?’”

By analyzing more than half a million sales of US homes with ducted heat pumps from 2024 to 2025, the authors found that those with real estate listings mentioning the heat pump typically enjoyed a sales price boost of 0.6 percent to 1 percent over homes that didn’t advertise their efficient appliance. This modest lift translates to $2,300 to $3,900 per home, given a median sale price of $399,000.

“Just shy of $4K doesn’t sound like a lot of money on a home sale,” Rosenberg said. ​“But it’s actually a meaningful piece of the investment that you made to get the heat pump in the first place.”

In 2026, a ducted heat-pump system costs on average about $15,400, per energy marketplace EnergySage—though prices vary wildly depending on the region, a home’s size and electrical service, and local contractors, to name a few variables. A comparable gas furnace plus central AC system can cost half that, according to home services platform Angi. Mentioning a home’s heat pump in the sale listing, assuming the appliance cost around the average price, can recoup about 15 percent to 25 percent of the outlay.

Now, every home is different, and people willingly pay premiums for a wide variety of attributes, such as the floor plan, the views, and neighborhood vibes.

But Rosenberg is confident that when it comes to real estate listings, the heat-pump price bump is real, because of the approach his team used and the amount of data they analyzed. 257 used a machine learning technique to cluster homes across hundreds of attributes to identify those that are nearly identical, he said. Then, within those clusters, sales prices were contrasted for those homes where the heat pump was or wasn’t mentioned in the listing.

Yueming ​“Lucy” Qiu, an economics professor at the University of Maryland, called the report ​“very valuable” for helping to gauge the premium that people place on heat pumps. ​“I’m actually very happy that this came out,” said Qiu, who investigated the matter years ago at a smaller geographic scale.

In 2020, Qiu and her colleagues published a peer-reviewed study in Nature Energy that looked at home sales across 23 states from 2000 to 2018 for whether the presence of a heat pump improved the property’s sale prices.