By the HomeCostLens editorial team · Reviewed July 2026 · HVAC · Source: BLS PPI — HVAC & commercial refrigeration equipment
▲ up 4.9%
Year-over-year change in AC installation costs. National average now ~$7,500.
National avg: $7,500
Typical range: $5,000–$12,500
Since 2021: +47%
The national average cost of AC installation has risen about 4.9% over the past year, reaching roughly $7,500 in 2026. The 2025 switch to A2L refrigerants and steady equipment PPI gains (~5%/yr) are the main drivers; installed AC costs keep rising mid-single-digits.
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AC Installation cost trajectory, 2021–2026
Estimated national AC installation cost (indexed from BLS producer-price data)
Indexed estimate (2021 = 100) based on BLS Producer Price Index category data and skilled-trade wage growth; actual prices vary by city and scope.
Where AC installation costs the most & least
Local prices swing widely around the national average — driven by labor rates, climate, and permit costs. Here is how AC installation ranks across the 100 metros we track.
Yes. AC Installation costs have risen roughly 4.9% year-over-year, to a national average of about $7,500. The 2025 switch to A2L refrigerants and steady equipment PPI gains (~5%/yr) are the main drivers; installed AC costs keep rising mid-single-digits.
What is the average cost of AC installation in 2026?
The U.S. average is about $7,500 before local adjustment, typically ranging from $5,000 to $12,500 depending on scope and your city.
Why have AC installation prices changed?
The 2025 switch to A2L refrigerants and steady equipment PPI gains (~5%/yr) are the main drivers; installed AC costs keep rising mid-single-digits.