HVACCost of HVAC Replacement in Phoenix, 2026
Full heating + cooling system changeouts in the Valley — heat pumps, split systems and rooftop packages.
Typical: $7,000 – $15,000
The short answer
Gas furnace replacement, professionally installed in Chicago:
Typical range
$5,900 – $10,900
What most Chicago homeowners pay, equipment, labor and permits included
Average cost
≈ $8,400
Average across 2,400+ completed Chicago-area furnace projects
Budget swap
$4,500 – $6,500
Standard 80% AFUE, single-stage, straightforward like-for-like installs
Chicago prices run about 8–12% above the national average — higher labor rates and stricter city permitting. Broader national datasets that include small electric units show lower averages, so compare like with like. Prices vary by home and contractor.
When a Chicago furnace quits in January, the house starts losing the fight against single-digit temperatures within hours — pipes included. That urgency is exactly when homeowners overpay. More than 87% of furnace replacements in the Chicago area are natural gas, and quotes for the same furnace in the same basement can differ by $3,000. This guide breaks down what a replacement should cost in 2026, what belongs in a fair quote, and where the extra charges hide.
For a typical gas furnace replacement — new unit on existing ductwork and gas line — most Chicago homeowners pay between $5,900 and $10,900 installed. High-efficiency condensing models with new venting sit at the top of that range; simple 80% AFUE swaps come in lower. The tables below show where your job is likely to land.
Furnace replacement cost by size and efficiency
| Furnace | Installed cost | Good to know |
|---|---|---|
| 60,000 BTU, 80% AFUE, single-stage | $4,500 – $6,200 | Smaller homes, condos, mild-demand bungalows |
| 80,000 BTU, 80% AFUE, single-stage | $5,000 – $6,800 | The classic Chicago basement swap; vents through the existing chimney flue |
| 80,000 BTU, 95–96% AFUE, two-stage | $5,900 – $8,400 | The most common upgrade; needs PVC venting and a condensate drain |
| 100,000 BTU, 95–96% AFUE, two-stage | $6,800 – $9,600 | Larger two-story homes, 2,200+ sq. ft. |
| 100,000 BTU, 97–98% AFUE, variable-speed/modulating | $8,400 – $10,900 | Quietest, most even heat; lowest gas bills |
| Electric furnace | $2,500 – $5,500 | Cheaper to install, much more expensive to run in a Chicago winter |
Installed prices include the furnace, standard labor, permit and disposal of the old unit. Ranges compiled from Chicago-area project data (Four Seasons), Angi Chicago and Modernize, 2026. AFUE = Annual Fuel Utilization Efficiency: the share of gas that becomes heat.
What a Chicago quote should include
| Line item | Typical cost |
|---|---|
| Furnace equipment (gas, 80k–100k BTU) | $2,000 – $6,200 |
| Installation labor ($85–$100/hr Chicago rates) | $1,500 – $3,800 |
| City of Chicago permit & inspection | $100 – $300 |
| PVC venting & condensate drain (high-efficiency models) | $300 – $900 |
| Sheet-metal transition & duct connections | $200 – $700 |
| Thermostat (programmable or smart) | $100 – $400 |
| Removal & disposal of the old furnace | $100 – $300 |
Ask for every quote itemized like this, with the exact model number. Watch the venting line in particular: switching from an 80% furnace to a 95%+ condensing model always requires new PVC venting — a quote that omits it will grow on install day.
What drives the price up or down
Efficiency (AFUE rating)
The biggest price lever. An 80% AFUE furnace is the cheapest to buy; a 96–98% condensing model costs $1,500–$3,500 more but converts nearly all its gas to heat — a real difference across a Chicago heating season, and the tier that qualifies for most rebates.
Size (BTU output)
Chicago homes typically need 60,000–120,000 BTU. Oversizing is the classic mistake: a too-big furnace short-cycles, heats unevenly and wears out early. A Manual J load calculation is the correct way to size — not "same as the old one."
Venting & condensate
High-efficiency furnaces vent through PVC pipe and produce condensate that must drain — and in Chicago, drain lines need freeze protection. Chimney liner work for an 80% swap can add $500–$1,500 if the old liner is shot.
Ductwork condition
Older Chicago housing stock often has undersized returns or leaky sheet-metal ducts. Modifications add $300–$2,500, but a new furnace on starved ductwork will be noisy and underperforming from day one.
Blower type
Variable-speed ECM blowers cost more up front than single-stage PSC motors, and they earn it back: quieter, more even temperatures, and lower electric bills — plus better summer dehumidification with your AC.
Timing
Mid-winter emergency installs carry 15–25% surge pricing across the Chicago market, with zero negotiating room. A furnace replaced in late summer — checked, priced and scheduled calmly — is the same furnace for noticeably less.
DIY vs. hiring a pro
Do it yourself
$2,000 – $6,200 in equipment
- Gas line connections and combustion venting are life-safety work — leaks and carbon monoxide are the failure modes
- Chicago requires a permit and inspection for furnace replacement
- Manufacturer warranties generally require licensed installation
- Condensing furnace drains installed wrong freeze and flood in January
- No load calculation — most DIY installs copy the old (often oversized) unit
- You haul out a 150+ lb steel furnace yourself
Hire a licensed HVAC contractor
$5,900 – $10,900 installed
- Manual J sizing and proper gas-pressure setup
- Permit pulled with the Chicago Department of Buildings and inspection passed
- Full manufacturer warranty, registered for you
- Carbon monoxide testing at start-up
- Most replacements completed in one day
- Eligible installation for Nicor Gas and federal incentives
Our take: of all home projects, a gas furnace is the one to keep away from DIY. The equipment is most of the bill either way, the gas and venting work carries real danger, and Chicago's permit and inspection exist precisely because of that. Spend your effort on three itemized quotes and a load calculation — that's where the money is saved safely.
How to pay less without cutting corners
- Replace in late summer. August and September are the cheapest months to buy a furnace in Chicago; January is the most expensive, with market-wide surge pricing.
- Claim the incentives. Nicor Gas offers rebates on qualifying high-efficiency furnaces, ComEd runs periodic heating incentives, and federal credits may apply — programs change yearly, so confirm before you sign.
- Price furnace + AC together if both are old. Replacing both at once in Chicago averages about $7,770 (Angi) — usually less than two separate jobs, with one labor visit instead of two.
- Get three written, itemized quotes with model numbers. A quote that just says "new furnace — $9,000" can't be compared, and that's deliberate.
- Consider 95–96% AFUE the sweet spot. It captures most of the fuel savings and rebate eligibility without the top-tier price of 98% modulating equipment.
- Don't buy BTUs you don't need. If your home has added insulation or new windows since the last furnace, the correct size may be smaller — and cheaper — than the old unit.
Frequently asked questions
How much does it cost to replace a furnace in Chicago?
Most Chicago homeowners pay $5,900–$10,900 for a gas furnace replacement, fully installed, with an average around $8,400 based on 2,400+ local projects. A straightforward 80% AFUE swap can start near $4,500; a top-tier 97–98% AFUE variable-speed system tops the range.
What size furnace does a Chicago home need?
Most need 60,000–120,000 BTU, driven by square footage, insulation and how well the home holds heat at Chicago's winter design temperatures. The only reliable way to size is a Manual J load calculation — a good contractor includes one in the quote.
Is a high-efficiency furnace worth it in Chicago?
Usually, yes. Chicago's long heating season means a 96% AFUE furnace saves meaningful gas money every year versus an 80% model, and high-efficiency units qualify for utility rebates that narrow the price gap. The payback is shortest in larger, leakier older homes.
Do I need a permit to replace a furnace in Chicago?
Yes. The City of Chicago requires a permit and inspection for furnace replacement, handled through the Department of Buildings. Budget $100–$300 — your contractor should pull it as part of the job. Suburbs across Cook County have similar requirements.
How long does a furnace last in Chicago?
Typically 15–20 years with annual maintenance. Warning signs it's near the end: rising gas bills, uneven heating, frequent repairs, a yellow or flickering burner flame, or a heat exchanger concern on inspection — a cracked heat exchanger means immediate replacement, not repair.
How long does a furnace replacement take?
Most like-for-like replacements are completed in a single day — roughly 4 to 8 hours. Jobs adding new PVC venting runs, condensate work or duct modifications may need a second visit.
Disclaimer: Prices on this page are researched estimates compiled from published cost data (Chicago-area project data, Angi, Modernize — checked October 2026) and are shown as ranges, not quotes. Actual prices vary by home, contractor, and market conditions. Always confirm the full scope of work and the final price in writing before any work begins.
