Are Air Conditioning Replacement Costs Increasing

Are AC Replacement Costs Increasing in Phoenix Because of Inflation?

Approximately three-quarters of new homeowners had unexpected repairs after just one year of owning their new home.

Improper HVAC installations can cost you hundreds or thousands of dollars in repairs and a new unit.

Choosing a reputable and trustworthy company can help you with AC replacement costs and ensure your unit lasts for years.

Yet, if you’ve been reading the news, you know that rising inflation may also impact homeowner repairs this year.

How is the changing market affecting AC unit costs in Phoenix?

Luckily, we have put together a complete guide that looks at inflation, AC unit costs, and how you can find the best price for a new unit, so keep reading for more information!

Rising Inflation in Phoenix

Across the nation, inflation rates are soaring, but how are you affected locally?

During the past year, the Consumer Price Index increased by almost 11 percent. Energy prices rose the highest at nearly 30 percent.

Most of these soaring prices are from rising gas prices, but AC replacement costs in Phoenix are also increasing. Why?

Like most businesses, HVAC companies suffer from a lack of supplies and worker shortages.

Supply chain issues and transportation lags have increased AC replacement costs across the country.

So – when you ask the question ‘are AC replacement costs increasing in Phoenix?’ the answer is: yes! But it’s not just in Phoenix – prices are rising nationally in many sectors, and HVAC units are just one area.

For example, in Idaho, HVAC prices have increased in some regions by 80 percent, and the primary reason is supply chain issues.

Will Supply Chain Issues Resolve?

Since supply chain issues are one of the reasons that AC unit prices are increasing, is there any reprieve in the immediate future? The answer is a bit more complicated than a simple yes or no.

Experts predicted that January 2022 was the peak of supply chain issues and that you can expect some resolution during 2022.

Yet, the labor market proves to be another obstacle in rising inflation rates.

Worker shortages, an aging population, and declining birth rates continue posing problems for transportation and raw material workers.

Even if COVID-19 rates continue falling, it may take until 2023 for supply chains to start returning to pre-pandemic levels.

AC Replacement Costs

Now that you know high inflation and supply chain problems aren’t disappearing any time soon, how much can you expect for AC replacement costs in Phoenix?

Typically, the cost depends on the type of AC unit, home size, and labor.

You can find the best quality AC units at an affordable price through Mark Daniels Air Conditioning and Heating.

We work locally in the East Phoenix area and deliver high-quality products with efficient installations to ensure that you get the most for your money despite rising inflation.

Nationally, an average AC unit costs between $5,000 to $11,000.

AC Repair vs. Replacement

You can save money with Phoenix AC replacement costs by knowing when you need a repair versus a replacement.

Regularly maintaining your AC unit can ensure it lasts for years. However, here are some signs you need a professional repair company:

  • Loud noises
  • Water leaking
  • Smells
  • Warm air when switched to ‘cool’
  • Poor airflow
  • High humidity levels
  • Ice on AC unit
  • Higher energy bills

In most instances, your AC unit should last between 10 and 15 years.

If you are nearing your AC unit’s life expectancy, you may be better off opting for a complete replacement versus a repair.

Switching to a newer unit can help keep your home comfortable and save you money on your energy costs.

New HVAC Installation

What can you expect for an AC replacement in Phoenix?

After choosing a reputable company, technicians will come out to your home and assess your heating and cooling loads.

Your doors, windows, rooms, and the size of your house all play a role in an efficient HVAC system.

New units can filter and circulate air, which can help with indoor air allergies.

Afterward, the size of your new HVAC unit is determined, and the next step is assessing your ductwork.

If the ductwork needs to be replaced, that may cost you more money, but it ensures your HVAC unit functions efficiently and properly.

In some instances, you can choose a ductless system or add insulation, which can boost performance and help with your HVAC’s lifespan.

After ductwork, an HVAC company looks at refrigerant lines. This is an important step, and it helps to have a qualified company that uses the best quality lines for installation.

The last step connects the HVAC unit to the ductwork, wires, and thermostat. Your skilled technician will perform a final check that ensures everything works properly.

They can also double-check your thermostat since an improperly functioning thermostat can make your HVAC work inefficiently and increase energy costs.

Most experts suggest having your new AC unit in the Phoenix region checked by a maintenance crew at least once a year.

This can help you avoid high repair costs and keep your home comfortable all year round.

As a general rule of thumb, replace your air filters every 30 to 90 days, or even more often if you have pets in the house.

Best AC Replacement Company in Phoenix

AC replacement costs are rising nationwide, making it even more critical to find a reputable and qualified company for a new HVAC unit.

At Mark Daniels Air Conditioning and Heating, we pride ourselves in being a 5-star, emergency HVAC company that can handle new installations, repairs, and regular maintenance.

A new AC unit this year can reduce your energy bills, keep you comfortable during hot summers, and help indoor air quality.

What are you waiting for? Check out our website for affordable AC installation and get a free quote today!


Looking for a trusted company to assist with your cooling and heating in Southeast Phoenix? Contact your 5-star, emergency HVAC experts at Mark Daniels Air Conditioning & Heating. We’ve been serving the Valley Since 1996. Call  (480) 571-7219 or request service online today!


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