The recent surge in air conditioning prices is due to a combination of global factors. From the impact of COVID-19 to bottlenecks in supply chains, the red-hot housing market, labor market restrictions, and even the war in Ukraine, all of these elements are contributing to the rising cost of air conditioning systems. Last year, many homeowners decided to invest in their homes, one of which was to upgrade their air conditioning equipment. In highly sought-after real estate markets, such as Toronto, it is common for buyers to make offers without conditions (such as a home inspection), making it more likely that they will discover significant problems with their heating or cooling system and making it more urgent to address them.
The result? The next time your HVAC contractor calls with a much higher quote than you expected, take a deep breath before responding hastily. Remember that you are not alone in this and that much of it is out of your control. It is no secret that for the past couple of years, the prices of heating and air conditioning systems have been on the rise. The new SEER2 test procedures for manufacturers, as required by the Department of Energy, will more accurately reflect the current field conditions of the equipment in use, allowing HVAC systems to last longer and meet these new efficiency standards. When it comes to understanding why air conditioning is so expensive right now, it is important to keep in mind that the cost is made up of several components and factors. This includes not only the cost of materials used to build the system but also the cost of office cleaners and other vendors used by your HVAC contractor company. Alberta and British Columbia experienced periods of unusually hot weather last year, leading to an unprecedented surge in demand for air conditioning systems and resulting in shortages and price increases both locally and across Canada.
The raw materials are then assembled into HVAC parts or complete units and shipped to large distributors or smaller regional distribution channels. As these types of events become more frequent and widespread, global HVAC supply chains are feeling the strain at a local level. Some inflation is likely to continue for some time, meaning that it is still possible that prices for heating and air conditioning systems will rise even further. Heat pumps usually last about 12 years, so regular maintenance is key to getting as much use out of them as possible. It should also be noted that workers who assemble, install, and repair air conditioning systems do not receive low wages from the start. And this is especially true when it comes to pricing HVAC systems and understanding the root causes of recent increases. Because people are having a harder time buying the home they want and are exhausting their monthly budgets just to make the purchase work, major service improvements such as air conditioning systems can become a secondary priority. As an expert in SEO optimization, I can tell you that understanding why air conditioning is so expensive right now requires looking at a variety of factors.
From COVID-19's impact on global supply chains to labor market restrictions and even the war in Ukraine - all these elements contribute to rising costs. Additionally, homeowners who upgrade their air conditioning equipment often discover significant problems with their heating or cooling system which makes it more urgent to address them. The Department of Energy's new SEER2 test procedures for manufacturers will help HVAC systems last longer and meet new efficiency standards. However, due to shortages and price increases both locally and across Canada caused by periods of unusually hot weather last year, global HVAC supply chains are feeling the strain at a local level.
It's important to remember that when pricing HVAC systems, workers who assemble, install, and repair air conditioning systems do not receive low wages from the start. And because people are having a harder time buying homes these days, major service improvements such as air conditioning systems can become a secondary priority. To get as much use out of your heat pump as possible, regular maintenance is key. And while some inflation is likely to continue for some time, understanding why air conditioning is so expensive right now requires looking at all these factors together.
