Why AC is cheap, but AC repair is a luxury
Air conditioning hardware has become relatively cheap while installation and repair costs have soared, prompting debate over what’s really driving prices in the trades. Commenters point to a mix of factors: Baumol’s cost disease, regulation and licensing, underinvestment in vocational training, private equity roll‑ups, liability and insurance, and consumers who can no longer or will not DIY. The thread links this to AI and “Jevons paradox” arguments, questioning whether automation will truly lower service costs or simply deskill workers, concentrate gains, and make the remaining human labor even more expensive and critical.
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).