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Furnace Replacement in Minneapolis, MN

Furnace replacement in a Minneapolis house runs $4,500–$9,500 installed, and in pre-1940 houses the venting drives much of the job. Minneapolis requires a city mechanical permit; ask us how it and any water heater liner show on the quote.

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Furnace replacements in Minneapolis homes

Replacing a furnace in a pre-1940 Minneapolis house is mostly a venting and ductwork job. A 96–98% condensing furnace sends its exhaust out a side wall in PVC, which takes planning on a narrow city lot. The gas water heater left in the old chimney often needs a liner or a power-vent model. Staying with an 80% furnace in the chimney works if the flue is sound.

Converted gravity ducts move air well, but the returns are often undersized or oddly placed, and old duct wrap can contain asbestos, so it gets tested before anyone cuts. Furnaces that replaced gravity systems were often oversized; a Manual J commonly calls for less. CenterPoint Energy supplies the gas and offers heating system rebates on qualifying high-efficiency furnaces and boilers. The City of Minneapolis requires a mechanical permit and inspection; ask us how the permit shows on your quote.

Updated October 27, 2026

What affects the price of a new furnace in Minneapolis?

By efficiency: 80% AFUE roughly $4,500–$6,000; 96–98% AFUE roughly $6,500–$9,500. See the furnace replacement cost guide. For what drives a quote locally, see HVAC cost in Minneapolis.

Are there rebates for a new furnace in Minneapolis?

In Minneapolis, CenterPoint Energy handles gas-side rebates for high-efficiency furnaces, boilers and thermostats, and it lets you pick your own heating dealer, provided the application is filed in the calendar year of the install. Ask us which rebates apply when we quote. Rebate programs change every year, so check the utility's current terms before you buy.

Our guides: Xcel and CenterPoint rebates, heat pump rebates.

Furnace replacement in Minneapolis: questions

Can the PVC vent from a new furnace face the neighbor's house on our narrow Minneapolis lot?

Often, if the clearances work. The manufacturer sets minimum distances from windows, doors, the gas meter and inside corners, and the exhaust shouldn't blow into a neighbor's window a few feet away. When the side yard is too tight, a roof termination or the back wall can work. We lay out the route before quoting, and the city's mechanical permit covers it.

The furnace in our Minneapolis bungalow seems huge. Will the new one be smaller?

Probably. Furnaces that replaced gravity systems were often sized generously, and since then most of these houses have gained insulation, storm windows or new windows. A Manual J load calculation measures the heat loss of the house as it stands today, and in a story-and-a-half bungalow it commonly lands well below the old nameplate. A right-sized furnace runs longer, quieter cycles and stops overheating the rooms closest to the basement.

More in Minneapolis

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Furnace replacement near Minneapolis

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