Should I switch to a tankless water heater?

Tankless water heaters heat water on demand, using 20 to 35 percent less energy than traditional tank heaters. They last longer (20 years vs. 10 to 12 years) and take up less space. However, they cost more upfront and may struggle to supply multiple fixtures simultaneously. For a family of four or fewer, tankless is often a smart investment. For larger households, consider a high-efficiency tank heater.