How Do Heat Pumps And Mini Splits Increase Home Value?

Mini splits and heat pumps increase home value because they last longer than other HVAC systems and provide better comfort while using less energy. In dollars and cents, that means a new homeowner will pay less each month for heating and cooling. And, they’ll go longer before having to invest in a new HVAC installation.

In this article, I’ll explain how the benefits of these systems translate into higher property values. Then, I’ll explore their cost, when you’ll see a return on investment, and an estimate of how much more your home will be worth.

As an HVAC expert with nearly 15 years of experience, I’m very familiar with heat pumps and ductless mini splits. I’ve been a product manager for Peirce Phelps for over a decade, specializing in high efficiency equipment.

The job also involves working closely with dozens of HVAC contractors in Pennsylvania, Maryland, Delaware, and New Jersey about the latest innovations and features, and what questions and concerns they hear from homeowners.

If you’d like more specific information about your home or area, use our dealer locator to find a certified contractor near you. They offer free consultations so you can learn everything you need to know.


Before we dive into the reasons why mini splits and heat pumps can increase house prices, let’s take a quick look at how they work.

How Mini Splits And Heat Pumps Work

A ductless mini split uses a heat transfer process to move warmth in and out of a house without the use of ductwork. It also allows the homeowner to adjust the temperature in each room independently.

The setup consists of an air source heat pump and indoor units, or air handlers mounted in each room the system needs to heat or cool. All these parts are connected by copper lines that run refrigerant in a closed loop between them. The refrigerant absorbs heat and carries it in or out of the house. In the winter, the heat pump extracts ambient heat from the air and compresses it.

The refrigerant absorbs the heat and sends it to the air handlers, which use it to warm the air in their respective spaces. In the summer, the refrigerant absorbs heat from each room through the air handler. The heat pump then transfers that thermal energy to the outside air.

The air handler then circulates the now-cool air in the room. Since the system only moves heat and coolant, not air, there’s no need for ductwork. The copper lines can run through or across the walls to reach the heat pump.

Five Reasons Ductless Mini Splits Can Increase Home Value

An energy efficient home can increase home value by thousands of dollars. For a prospective buyer, a mini split heating and cooling system will:

Provide Customized Comfort

Each indoor unit can be controlled independently, allowing homeowners to set different temperatures in different rooms. This level of control is especially useful in larger homes where different family members have different temperature preferences.

Eliminate Common HVAC Problems

Uneven heating and cooling is common in many homes, and especially in larger luxury homes, split level ranches, three-story houses. Hot and cold spots occur because there’s not enough pressure in a forced-air system for the heating and cooling to reach every part of the house.

A buyer looking for a home with cathedral ceilings, bonus rooms over a garage, or a finished attic will get better comfort in a home with a ductless mini split.

Each air handler uses special fans and sensors to detect areas in a room that need more heating or cooling and direct more conditioned air to those spots.

Reduce Utility Bills

Energy efficient heat and cooling is very attractive for a prospective home buyer. When they compare those monthly savings versus a tiny increase in their monthly mortgage payment for a more valuable home, the math works in their favor.

Ductless mini splits use significantly less energy than traditional heating and central air systems. Heat pumps are also highly energy-efficient because they move heat instead of generating it, which requires much less energy than gas or oil combustion.

Reduce Carbon Footprint

Homeowners who are environmentally conscious will appreciate the lower energy consumption and reduced greenhouse gas emissions associated with mini splits and heat pumps. By using less energy, ductless mini splits and heat pumps can also help reduce carbon footprints.

A mini split system also offers the chance to really go green. These cooling and heating systems use so little energy that they can be powered from solar panels.

Have A Long Life Expectancy

With proper installation and maintenance, these systems can last up to 20 years, which is longer than traditional central air systems. This longevity is an attractive selling point for potential home buyers who are looking for long-term solutions that won’t require frequent replacement or repair.

Upfront Cost And Return On Investment With A Mini Split

The cost of installing a mini split is much more than what you’ll pay for a furnace and central air. But, these high-efficiency ductless heat pump systems can last up to 20 years, and your utility bills will be much lower than if you had a traditional heating and air conditioning system. The difference in those monthly bills eventually matches the extra money you spent for a mini split.

Most homeowners make that money back within five years. After a decade, the system has paid for itself with those energy efficiency savings. If you sell after even after five years, you’ve gotten your ROI plus more for the added home improvement value.

Do Heat Pumps Increase Property Value?

A heat pump increases property value whether it’s part of a ducted, forced-air system or a more robust mini split setup. In both cases, it’s more environmentally-friendly and uses much fewer resources, especially in heating mode, than conventional furnaces, central air, baseboard heaters, or window ACs.

How Much Value Does A Heat Pump Add To Your Home?

According to a study from Nature Energy, home value can increase by $10,000 to $17,000 if it has a heat pump system. Written in 2020, the study points out that increasing awareness of the benefits these systems offer will make them more popular and valuable.

Now, the 2022 Inflation Reduction Act has generated even more awareness. The law includes significant rebates for homeowners who install heat pump systems in their home.

As the average cost of homes continues to go up every year, adding a mini split or heat pump can make your home more comfortable now and more competitive on the market later.

If you’d like to learn more mini split and ductless air conditioner installation in Philadelphia, PA, Pennsylvania, New Jersey, Maryland, or Delaware, use the dealer locator button to schedule a free consultation with a certified dealer in your area.