“How much does a new furnace cost?” is one of the first questions homeowners ask once they realize a repair isn’t going to cut it anymore. The honest answer is that it depends on more factors than most price-comparison articles let on. Here’s a real breakdown of what drives furnace pricing in 2026, and what Eugene and Salem homeowners can expect to pay.
How Much Does a New Furnace Cost in 2026?
Most homeowners can expect to pay somewhere between $3,500 and $9,000 for a new furnace, fully installed. That’s a wide range, and for good reason — the final number depends on the furnace’s fuel type, efficiency rating, size, and how much work is involved in installing it correctly in your specific home.
What Affects the Cost of a New Furnace?
Several factors combine to determine your final price:
- Fuel type — gas, electric, and dual-fuel systems all have different equipment and installation costs
- Efficiency rating (AFUE) — higher-efficiency furnaces cost more upfront but reduce monthly energy bills
- Furnace size (BTU capacity) — sized to your home’s square footage and insulation, not just the size of your old unit
- Ductwork condition — modifications or repairs to existing ductwork add to the total project cost
- Labor complexity — tight crawl spaces, attic installations, or venting changes can increase installation time
- Brand and warranty coverage — equipment brand and warranty length both factor into upfront pricing
Furnace Cost by Efficiency Rating
Standard-efficiency furnaces (around 80% AFUE) typically cost less upfront and work well for homeowners planning to stay in a home short-term. High-efficiency furnaces (90% AFUE and above) cost more initially but burn less fuel to produce the same heat, which can offset the higher purchase price over several winters through lower gas or electric bills.
Gas vs. Electric Furnace Cost Differences
Gas furnaces generally cost more to install upfront than electric furnaces, largely due to venting and gas line requirements, but they tend to cost less to operate in most Oregon homes given regional utility rates. Electric furnaces have simpler installation requirements but can carry higher monthly operating costs depending on electricity pricing in your area.
Additional Costs to Budget For
Beyond the furnace itself, a few line items often show up on a complete installation quote:
- Permit fees, which vary by city and county
- Old furnace removal and disposal
- Ductwork repairs or modifications, if needed
- A new thermostat, if your current one isn’t compatible with the new system
A detailed, in-home estimate is the only reliable way to know which of these apply to your specific installation.
Is a More Expensive Furnace Always Better?
Not necessarily. The right furnace is the one sized and rated correctly for your specific home, not simply the most expensive option on the list. An oversized or mismatched high-efficiency furnace can actually perform worse and cost more to run than a properly sized mid-efficiency system. This is one of the biggest reasons a proper professional installation assessment matters more than picking a model off a spec sheet.
How to Get an Accurate Furnace Cost Estimate
Online price ranges are useful for setting expectations, but they can’t account for your home’s specific ductwork, insulation, square footage, or venting setup. The only way to get a number you can actually budget around is a professional in-home assessment, which factors in the details a generic estimate can’t.
Why Furnace Costs Differ Between Eugene and Salem Homes
Housing stock plays a bigger role in furnace pricing than most homeowners expect. Older homes throughout Eugene, Springfield, and Lane County, as well as Salem and Marion County, often have ductwork or venting that wasn’t designed for today’s higher-efficiency equipment, which can add to installation costs. Newer homes in both regions tend to have more standardized setups, which usually keeps installation more straightforward.
Why Homeowners Trust James Heating & Air Conditioning
Eugene, Springfield, and Salem homeowners have relied on our team for honest, accurate furnace pricing instead of inflated estimates, backed by more than 40 years of local experience. We operate under CCB #47396 and serve both Lane County and Marion County from our two locations.
Frequently Asked Questions
1. How much does a new furnace cost installed?
Most complete furnace installations range from about $3,500 to $9,000, depending on fuel type, efficiency rating, furnace size, and how much ductwork or venting work the installation actually requires for your home.
2. Is a high-efficiency furnace worth the extra cost?
It depends on how long you plan to stay in your home and your local fuel costs. High-efficiency furnaces cost more upfront but often pay back part of that difference through lower monthly energy bills over several years.
3. Is a gas furnace cheaper than an electric furnace?
Gas furnaces typically cost more to install due to venting and gas line requirements, but they often cost less to operate long-term in areas where natural gas rates are lower than electricity rates.
4. Does furnace size affect the price?
Yes. A furnace must be sized to your home’s square footage, insulation, and layout. An improperly sized furnace, whether too large or too small, can cost more to run and may not heat your home evenly.
5. What additional costs should I expect beyond the furnace itself?
Permit fees, old furnace removal, ductwork modifications, and a compatible thermostat are common additional costs that may appear on a complete installation quote, depending on your home’s current setup and equipment needs.
6. Can I get an exact furnace price without an in-home visit?
Not accurately. Published price ranges are a helpful starting point, but your ductwork, venting, and home layout all affect the final number, which is why an in-home assessment gives the most reliable estimate.
7. Do older homes cost more to install a furnace in?
Often, yes. Older homes in Eugene and Salem sometimes have ductwork or venting that wasn’t designed for modern high-efficiency equipment, which can add labor and materials to the total installation cost.
8. How long does a new furnace installation take?
Most standard furnace installations take about one day. Installations that require ductwork modifications, venting changes, or electrical work may take longer, sometimes spanning into a second day depending on the scope of the project.
9. Which areas does James Heating & Air Conditioning serve?
James Heating & Air Conditioning proudly provides air conditioning repair, maintenance, and installation services throughout Eugene, Springfield, Junction City, Veneta, Harrisburg, Marcola, Creswell, Cottage Grove, Florence, Salem, Keizer, and the surrounding Oregon communities in both Lane County and Marion County. Whether you’re dealing with a system that’s not cooling properly or you’re ready to schedule routine maintenance, our local technicians are familiar with the specific heating and cooling challenges homeowners in this region face throughout the year.
Get a Real Number for Your Home
Furnace pricing guides are useful for setting expectations, but the only way to know what a new furnace actually costs for your specific home is a professional assessment based on your ductwork, square footage, and heating needs.
Schedule Your Furnace Installation Estimate Today
Ready to get an accurate number instead of a guess? Call our Eugene team at (541) 461-2101 or our Salem team at (503) 581-9982 to schedule a furnace installation estimate. You can also Contact Us online to get started.
