Florida groundwater enters the house at 72 to 75 degrees Fahrenheit year-round, compared to 45 degrees in the north. That changes the economics of every water heater type.
Tank (traditional). Cheapest to install at $1,400 to $2,200. Tanks last 8 to 12 years in Florida, with corrosion being the killer rather than heating element failure. Best for low to moderate hot water use and a tight install budget.
Tankless (gas or electric). $3,500 to $5,500 installed. Endless hot water, 20+ year service life, smaller footprint. The math works best for families of four or more, or homes that frequently run out of hot water with a tank. Gas tankless needs a larger gas line; electric tankless needs a 150-amp or larger panel.
Hybrid heat pump. $3,000 to $4,500 installed, often closer to $1,800 after rebates. Pulls heat from garage air to warm the water, making it up to four times more efficient than an electric tank. Florida garages typically stay above 80 degrees most of the year, which is ideal. The catch: it needs somewhere with airflow, not a closet.
The most common install mistake: Undersizing. A family of five with two simultaneous showers will overrun a small tankless. Sizing is measured in gallons per minute at a given temperature rise. Always ask the installer for a written sizing calculation, not just a model number.
The right answer is whichever fits the household's actual usage. Sometimes a well-sized tank is cheaper and lasts as long as a tankless that gets undersized.