Tank vs. Tankless: Choosing the Best Water Heaters for Custom Homes in NW Indiana
- Hendren Custom Home
- Jul 21
- 5 min read
When you’re building a custom home in Valparaiso, every detail matters. From the foundation to the fixtures, you get to make choices that will shape your family's comfort for years to come. One of the most important decisions you'll make is selecting the right water heater. It may not be the most glamorous of all your home-building or renovation plans, but it is the unsung hero of your home. The choice between a traditional tank and a modern tankless system can significantly impact your daily life and comfort… and your energy bills.
This guide will walk you through everything you need to know about choosing the perfect water heater for your new build or custom renovation in Northwest Indiana.
Key Takeaways
Tank or Tankless Water Heaters: Both Are Great Modern tank and tankless water heaters are both excellent options; the "best" one depends entirely on your home's size, layout, and your family's lifestyle.
The Big Difference: Tank heaters maintain a large amount of water at a constant temperature 24/7. Tankless heaters heat water instantly, on-demand.
Energy Savings: For homes that use 41 gallons or less of hot water daily, tankless water heaters can be 24%–34% more energy-efficient than traditional tank models, according to the U.S. Department of Energy.
Large Home Solutions: For sprawling custom homes, installing two smaller traditional tank heaters in different zones can sometimes be more effective than one massive unit.
What is a Traditional Tank Water Heater?
A traditional tank water heater is what most of us picture: a large cylindrical tank that holds and continuously heats a reservoir of water (typically 40-80 gallons). It’s like a giant thermos, always keeping water hot and ready for you to use.
How does a tank water heater work?
Cold water enters the tank, is heated by a gas burner or electric element, and then stored until a hot water tap is turned on. As you use hot water, the tank is refilled with cold water, and the heating cycle begins again to keep the reservoir at your desired temperature.
What are the pros of a tank water heater?
Lower Upfront Cost: The initial purchase and installation costs are typically less expensive than those of a tankless system.
Simple, Proven Technology: Tank heaters are straightforward to install and repair, making them a reliable and familiar choice for many homeowners and plumbers.
What are the cons of a tank water heater?
Standby Heat Loss: Since the tank is always maintaining a hot water temperature, it consumes energy even when you're not using hot water.
Limited Hot Water: Once the tank is empty, you must wait for it to refill and reheat, a significant drawback for large families.
Shorter Lifespan: They typically last around 10 to 15 years.
Large Footprint: The tank requires a significant amount of dedicated space in a utility closet, basement, or garage.
What is a Tankless Water Heater?
A tankless water heater, also known as an on-demand water heater, doesn't store any water. Instead, it uses powerful gas burners or electric coils to heat water in real-time as it flows through the unit.
How does a tankless water heater work?
When you turn on a hot water faucet, sensors activate the heating element. Water passes through a heat exchanger, is heated to your set temperature almost instantly, and flows directly to your faucet. When you turn the faucet off, the heater shuts down.
What are the pros of a tankless water heater?
Endless Hot Water: Because it heats water on demand, you’ll never run out, no matter how many showers are taken back-to-back.
Energy Efficiency: By only heating water when needed, you eliminate standby heat loss, saving money on your monthly utility bills.
Longer Lifespan: Most tankless units have a life expectancy of 20 years or more, nearly double that of traditional tank units.
Space-Saving Design: These compact, wall-mounted units can free up an entire closet's worth of space.
What are the cons of a tankless water heater?
Higher Upfront Cost: The initial investment for a tankless unit, including installation, is greater than that of a traditional tank.
Flow Rate Limitations: A single unit can only supply a certain number of gallons per minute (GPM). If you run the dishwasher, washing machine, and two showers simultaneously in a very large home, you might exceed its capacity unless it's adequately sized.
Which Water Heater is Better for my Large Custom Home in Valparaiso?
The right answer depends on your home's design and your family's needs.
When should I choose a tankless water heater?
A tankless system is likely the best choice if:
You have a busy family that often uses hot water simultaneously.
You want the long-term value of lower energy bills and a longer product lifespan.
You value the convenience of endless hot water.
You want to maximize every square foot of storage space in your new home.
When should I choose a traditional tank water heater?
A traditional tank might be a better fit if:
Your primary focus is on minimizing the upfront construction budget.
Your household has predictable and relatively modest hot water needs.
Can I use two water heaters in a big house?
Yes! For some custom home designs in Northwest Indiana, it's a brilliant solution. For large, sprawling ranch-style or multi-story homes, installing two smaller, 40-gallon traditional tank heaters on opposite sides of the house can be more efficient than one 80-gallon tank. This "zoning" strategy dramatically reduces the time you have to wait for hot water to reach a faraway bathroom or kitchen, saving both water and frustration.
What About Water Hardness in Northwest Indiana?
This is a critical local factor. According to data from Valparaiso Utilities, our region has very hard water, with levels around 23 grains per gallon.
Hard water contains high levels of minerals like calcium and magnesium, which can build up as scale inside any water heater, reducing its efficiency and lifespan.
For Tankless Heaters
The high heat can cause scale to form more quickly on the heat exchanger.
It is essential to have a water softener installed and to perform annual descaling maintenance to protect your investment.
For Tank Heaters
Scale builds up at the bottom of the tank, creating a barrier that makes the heater work harder and eventually fail.
Flushing the tank annually can help extend its life.
No matter which system you choose, addressing our region's hard water is key to ensuring its longevity.
The Bottom Line: Your Preferred Water Heater Tank is a Choice for Your Lifestyle
Choosing between tank and tankless water heaters for custom homes in NW Indiana is about matching the technology to your vision. Do you want the on-demand efficiency of a tankless system, or does the proven simplicity (and potential for a dual-unit setup) of a traditional tank fit your floor plan better?
As your Valparaiso home builder, Hendren Custom Homes can help you analyze your home's design and your family's needs to make the perfect choice.
Ready to design a home where every detail is built around you? Contact us today to start the conversation.
Sources Cited:
U.S. Department of Energy. (n.d.). "Tankless or Demand-Type Water Heaters." Energy.gov.
ENERGY STAR. (n.d.). "Save More with ENERGY STAR Gas Tankless Water Heaters." Energystar.gov.
Valparaiso Utilities. (n.d.). "Water Analysis." Valparaisoutilities.org.