Why AC is cheap, but AC repair is a luxury

Original Article ↗ Hacker News Discussion ↗

High HVAC and Home Repair Costs

  • Many see US HVAC and trades pricing as extreme: mini-splits or heat pumps quoted at $10k–$25k vs hardware costs of a few hundred to a couple thousand elsewhere.
  • Several stories of large quotes for simple work (moving an AC, fixing a leak) vs small actual labor/material cost, prompting accusations of “fleecing” and “go away” pricing for small residential jobs.
  • Others counter that margins aren’t as huge as they look once you include trucks, fuel, insurance, office staff, time in traffic, callbacks, and compliance.

Regional and Regulatory Differences

  • Big price gaps reported between US and Europe/Australia/Asia for similar equipment and installs; some attribute this to:
    • Market positioning of heat pumps as a luxury product in the US.
    • Long licensing paths, mandatory permits, and liability/insurance requirements.
    • Refrigerant rules, taxes, and recent shortages that make refills very expensive.
    • Tariffs and “safety-first” building codes raising installation costs.
  • Others argue regulation costs are real but far from the main driver; housing, healthcare, and wage structures matter more.

Trades Shifting Toward Wealthy Clients

  • Common theme: trades increasingly avoid small, one-off jobs because overhead (quoting, driving, billing, reviews) dominates revenue.
  • Preference for big construction projects or high-margin residential installs; minimums like “won’t get out of bed for less than $1,000” are reported.
  • Some blame private-equity rollups and standardized, non-negotiable pricing.

DIY as Coping Strategy

  • Many describe large savings from DIY HVAC, solar, and auto repairs compared to quotes.
  • Others stress hidden complexity and risk: electrical work, ladders, condensation/mold, flammable or high‑GWP refrigerants, and insurance gaps.
  • Online tutorials make DIY more accessible, but time, tools, and safety still limit who can realistically do this.

Economic Explanations and Article Critiques

  • Baumol’s cost disease is widely discussed; several note it describes real shifts but isn’t a “disease” so much as a side effect of progress.
  • Disagreement over Jevons paradox: some say the article misstates it (confusing cheaper coal with more efficient steam engines).
  • Pushback on claims that welfare and consumer protection are primary cost drivers; critics see that as ideological and note existing extreme poverty and wage stagnation.
  • Skepticism toward the article’s AI optimism and analogies (e.g., drywall vs flatscreen TV, radiology automation, affordable car leases).