The answer to 'average cost of water heater' is that the typical range for a new water heater installation can vary widely, from around $800 to $2,000 or more. The final cost depends on factors like the type of water heater (electric, gas, or tankless), the size and capacity, the complexity of the installation, and your local labor and material costs.
For example, a basic 40-50 gallon electric water heater may cost $800-$1,200 installed, while a high-efficiency tankless water heater can range from $1,500 to $3,000 or more. The cost also depends on whether you need to upgrade the electrical or gas lines, or if any plumbing work is required. It's best to get quotes from local plumbers to get an accurate estimate for your specific home and needs.