The type of HVAC system chosen for installation is one of the main factors that affects the overall cost. Portable AC units are typically the cheapest option, with prices starting as low as $200. On the other hand, geothermal heat pump systems are the most expensive, with average costs ranging from $10,000 to $35,000.

This manufacturing bottleneck resulted in less HVAC unit availability, driving prices up due to the classic economic principle of supply and demand. The HVAC industry, like many others, faced labor shortages even before the pandemic.

Most often, air handlers are located in the attic, basement or a dedicated closet, and may closely resemble the shape of a gas furnace. As its name suggests, an air handler “handles” the air inside your home and delivers warm or cool indoor air throughout your entire home.