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Tankless is rated by CR based on economics only. It costs more than you wil save compared to a tank heater. But how to you value unlimited hot water? What is it worth to not have 50 or 80 gallons of water hanging over your head?
Tankless costs a lot, but is slightly more efficient. Thus it does not cost as much more as it might seem. All CR determined is that in the long term Tankless costs more than tank becuase of the initial purchase and installation costs. For a large family you cannto beat tankless.
Also, in California, it's warmer, as some others who posted from Georgia and Texas, so you can put a hot water heater in an uninsulated area. In Raleigh, no, unless the heater space, pipes, etc. are insulated. But I'm with the above poster, that tankless option is really one to check out...cheaper, takes up less space, less chance of fire. I can't wait to get one for my house, where we've got our elect water heater on the living level, I'm always afraid it's going to catch fire or bust a leak. And I have seen several water heaters in attics on TV, always seemed strange idea to me, too, and if it leaks it's costly, as another poster testified.
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