Do Electric Fireplaces Increase Home Value? The Truth

By Joye Updated September 29, 2026 13 min read

On this page 7 sections

Electric Fireplaces and Their Impact on Home Value
Where the Heat and Value Actually Go
Installation Matters More Than You Think
How Electric Fireplaces Compare to Traditional Fireplaces
Regional and Market Differences in Value Impact
Choosing, Installing, and Using Your Electric Fireplace
Frequently Asked Questions

Short answer

Electric fireplaces can increase home value by enhancing appeal and providing energy-efficient heating, but they add less value than wood or gas models. An electric fireplace is a heater that uses electricity to create flame effects and supplemental heat without venting or chimneys.

Many homeowners wonder if installing an electric fireplace will boost their property’s resale value. The answer is yes, but the increase is usually smaller than with traditional fireplaces. Electric fireplaces offer ambiance, safety, and low-cost installation, making them a popular upgrade.

The impact on home value depends on factors like regional climate, installation quality, and how well the fireplace fits the home’s style. This article explains how electric fireplaces influence home value, what to consider when installing one, and what buyers expect.

Key takeaways

Electric fireplaces can raise home value by improving appeal and adding efficient supplemental heat.

They typically add less resale value than wood or gas fireplaces but cost much less to install and maintain.

Proper installation on a dedicated circuit and good design integration maximize value and safety.

Electric fireplaces are especially valued in colder climates and in homes where chimney installation isn’t feasible.

They can be safely installed under TVs if manufacturer clearance specs are followed.

Electric Fireplaces and Their Impact on Home Value

Yes, an electric fireplace can measurably improve resale value and buyer interest, but usually less than a comparable wood-burning or gas fireplace. Its effect comes mainly from a more attractive living space, practical supplemental heat, and low maintenance; the installation cost and how well the unit fits the room decide how much of that benefit survives an appraisal.

A sleek electric fireplace installed in a stylish living room, enhancing the ambiance. — An electric fireplace enhances the living space's appeal.

A national study found that homes with fireplaces sold for about 12% more than homes without one. That figure covers fireplaces generally, so you shouldn’t apply 12% to an electric model and call the result a guaranteed increase. Electric fireplaces may contribute to that premium by giving buyers the feature they want without a chimney, flue, gas line, or major venting work.

40%

Homebuyers listing fireplaces as desirable

A buyer survey found fireplaces were a desirable feature for 40% of respondents. That helps explain why an electric unit can add perceived value even when an appraiser gives more weight to permanent construction and comparable sales.

Resale value improves when the fireplace looks built in, suits the home’s style, and sits where buyers expect a focal point. A poorly sized insert, visible wiring, or a mantel that crowds the room can turn the same feature into a repair or remodeling question. Low maintenance and adjustable heat also appeal to families and pet owners who want the look of a fire without ash, chimney sweeping, or open flames.

What adds value	What can limit the gain
Integrated design and quality finish	A unit that looks temporary or undersized
Supplemental heat in a commonly used room	Heat output too small for the space
No chimney or venting required	An installation that needs cosmetic repair
Cool-to-touch glass and adjustable heat	Features that buyers can’t verify or operate

The feature earns more attention when its comfort and finish are easy to understand.

Myth

An electric fireplace adds no real value because it’s decorative.

Fact

It can add buyer appeal and some appraised value while providing supplemental heat. The increase is usually smaller than a traditional fireplace’s because the electric unit is easier to remove and doesn’t create the same permanent chimney or fuel-burning infrastructure.

A sensible resale test

Ask whether the fireplace improves the room for the next owner without requiring them to redo the wall. If the answer is yes, it has a stronger case as a home improvement; if resale is the only reason you’re considering one, enjoyment and installation cost should still carry more weight than a promised percentage.

Where the Heat and Value Actually Go

Electric fireplaces provide practical room heating and year-round flame effects, so their value is strongest in living rooms, bedrooms, and small spaces that need supplemental heat. They are more desirable in colder housing markets and homes without an existing fireplace, while buyers in mild climates may care more about the design than the heater.

An electric fireplace turns nearly 100% of the electricity it uses into heat at the unit. The heating element warms nearby air by convection, while people and surfaces in front of the appliance receive radiant warmth; the room’s HVAC system can then run less often when that one space is occupied. Energy efficiency describes the conversion, though your bill still depends on how many watts the heater uses and how long you run it.

Worked example

Say a 1,500-watt fireplace heater runs for 4 hours on a winter evening. It uses 1.5 kW × 4 hours = 6 kWh. At 17 cents per kWh, that evening costs about $1.02 before taxes and fees. The fireplace may let you lower central heat in the occupied room, but it won’t heat an entire house like a furnace or heat pump.

Heater power1,500 W

Evening use4 hours

Energy used6 kWh

Assumed electricity rate$0.17 per kWh

Flame effects create a usable focal point even when the heater is off, which gives the feature value in spring and summer as well as during heating season. That visual appeal can help a room photograph and show better, but buyers still notice whether the mantel, insert, and controls feel intentional rather than added as an afterthought.

Good fit

Living rooms that need occasional zone heating

Bedrooms or small rooms where central heat feels excessive

Homes seeking fireplace ambiance without combustion maintenance

Poor fit

Large open plans needing whole-home heat

Mild-climate homes where buyers rarely use supplemental heat

Rooms with no suitable wall or outlet arrangement

The strongest value case is comfort plus style: a buyer gets a warm sitting area, adjustable flame effects, and little routine maintenance. A fireplace that must carry the heating load for a large or poorly insulated space will disappoint, regardless of how convincing the flames look.

Installation Matters More Than You Think

Yes, most electric fireplaces should use a dedicated 15- or 20-amp circuit, and many can go safely under a TV when you follow the model’s clearance instructions. A 1,500-watt heater at 120 volts draws about 12.5 amps, leaving little spare capacity on a shared circuit.

Plug the fireplace directly into a properly rated wall outlet, never an extension cord or power strip. If the circuit also feeds lights, chargers, or another heater, have an electrician check the load before installation; a breaker that trips is telling you something, not asking for a larger breaker.

Choose the location

Keep the air intake and outlet clear, and place the unit where warm air can circulate through the room. Don’t aim heat at a television, receiver, soundbar, or other electronics unless the manufacturer allows that arrangement.

Check the clearances

Use the installation manual’s minimum distances above, below, and beside the fireplace. Under-TV installation can be safe, but the clearance is specific to the model and mantel design; measure before drilling.

Confirm the circuit

Check the fireplace’s wattage and plug requirements against the circuit rating. A licensed electrician should install a new circuit, outlet, recessed box, or hardwired connection when the manual calls for one.

Keep the paperwork

Save the manual, receipt, electrical permit, and installation invoice. Those records help show an appraiser and homeowner insurer that the fireplace was installed as listed.

Installation usually costs about $500 to $2,500, depending on the unit, wall finish, mantel, and electrical work. That is a much smaller renovation than adding a chimney, gas line, or combustion vent, which helps the improvement make sense for comfort as well as resale.

Don’t improvise the circuit

Never defeat a breaker, use an extension cord, or cover a vent to make the fireplace fit. Keep at least 3 feet of clearance from curtains, furniture, bedding, and other combustibles, and choose a unit with tip-over and overheat protection where those features apply.

Before you buy

If the wall layout is uncertain, start with advice on installing an electric fireplace anywhere. The framing, outlet location, heat path, and TV clearance all affect the finished focal point.

How Electric Fireplaces Compare to Traditional Fireplaces

An electric fireplace usually adds less appraised value than a comparable gas or wood fireplace, but its lower cost, simple upkeep, and broad buyer appeal can improve marketability and help a home sell faster. There is no dependable dollar amount to apply to every electric unit; local buyer preferences, finish quality, and whether the installation looks permanent matter more.

Myth

Electric fireplaces are only decorative.

Fact

The flame effects are decorative, but the built-in heater can provide supplemental room heat without running the full HVAC system. You can often use the visual effect with the heat turned off, then run heat only when that room needs it.

Feature	Electric	Gas	Wood
Installation cost	Installation costs vary widely; electric fireplaces require no chimney or venting, which generally lowers expenses.	Higher installation cost; requires gas service and venting	Traditional fireplaces often need a suitable chimney or vent system, which can add significantly to installation costs.
Maintenance	Minimal; keep vents and the unit clean	Periodic service and vent inspection	Chimney inspection and sweeping, plus ash and firebox cleaning
Energy efficiency	Efficient supplemental room heat with no flue heat loss	Good heat output, with efficiency depending on the appliance and venting	Heat output and efficiency vary with the stove or fireplace, wood, and chimney
Portability	Some units can move with you	Fixed in place	Fixed in place
Buyer and appraisal value	Usually lower direct appraised value; improves presentation and marketability	Good heat and buyer appeal; often stronger value than electric	Often the strongest traditional fireplace appeal and resale value

Costs are broad installation ranges, not a quote. The existing structure and local code can change the result.

Wood fireplaces can add the most resale value, but the $3,000–$10,000-plus installation range and ongoing chimney work make them a poor resale-only project for many homes. Gas fireplaces offer strong heat and familiar buyer appeal, yet the gas connection, venting, and installation work raise both cost and complexity.

Electric models suit buyers who want a finished focal point without storing firewood, cleaning ash, or maintaining a chimney. Their portability is another practical advantage: a homeowner may be able to take the unit along when moving, while a built-in gas or wood fireplace stays with the house.

For resale alone, choose an electric fireplace when the installation cost stays modest and the finished design fits the room; choose gas or wood when local buyers place a premium on real combustion heat and the home already has the required infrastructure.

Regional and Market Differences in Value Impact

Yes, electric fireplaces are more desirable in some housing markets, but regional appraisals rarely assign them a fixed dollar value. Buyers in cold areas may pay more attention to supplemental heat and a comfortable living-room focal point, while buyers in warm areas often treat the fireplace mainly as a design feature.

An electric fireplace providing warmth in a rustic cabin surrounded by snow. — Electric fireplaces are particularly desirable in colder regions.

Market	What Buyers Often Value	Likely Appraisal Treatment
Cold-climate homes	Supplemental heat, flame effects and a gathering spot	May support buyer interest when comparable homes commonly offer fireplaces
Warm-climate homes	Aesthetic appeal and, where allowed, an outdoor-rated patio fireplace	Usually treated as an amenity rather than a major heating feature
Urban condos	No chimney, no venting, simple operation and fewer combustion concerns	Can help the unit stand out when traditional fireplaces are uncommon
Markets without many fireplaces	A finished focal point that gives the home a feature buyers may expect elsewhere	May improve marketability, but the appraiser still relies on local comparable sales

Local comparable homes matter more than a national rule.

Cold-weather demand is the clearest case: an electric fireplace can give a bedroom, den or living room supplemental heat without starting the whole HVAC system. That practical use can strengthen perceived home value, especially where wood storage, chimney maintenance or gas service would be inconvenient.

electric fireplace: Regional and Market Differences in Value Impact

Warm-climate buyers may care more about realistic flame effects, a mantel or an outdoor installation than heating output. An outdoor unit must be specifically listed for outdoor use; an indoor electric fireplace doesn’t become patio-safe because the weather looks agreeable.

Read the local market

Ask a local real estate agent to compare recent homes with fireplaces against similar homes without them. If nearby listings treat fireplaces as standard, yours may meet an expectation; if they rarely appear, the feature may improve appeal without producing a clear appraisal adjustment.

An appraiser generally looks at condition, permitted work and comparable sales rather than adding a universal percentage for an electric fireplace. Keep the model information, installation records and permit paperwork so the feature is easy to identify during a sale.

Choosing, Installing, and Using Your Electric Fireplace

Installing an electric fireplace purely for resale value usually isn’t a reliable investment; choose one when you’ll also use and enjoy it, then make the installation look permanent, safe and appropriate for the room.

Choose a credible unit

Look for realistic flame effects, adjustable heat and a remote control, along with tip-over or overheat protection where the model provides it. Pick a size that fits the wall instead of filling the room with a screen that looks like an afterthought.

Plan the electrical work

Have a licensed electrician check the load, install the dedicated circuit the model requires and complete the work to local code. Plug the fireplace directly into a wall outlet; don’t use an extension cord or power strip.

Place it for the room

Set the fireplace where it serves the seating area and the supplemental heat can reach the space. A well-proportioned mantel or recessed installation can make the unit a focal point without blocking walkways or crowding furniture.

Protect nearby finishes

Follow the manufacturer’s clearances above, below and beside the unit, especially under a television. A fireplace can go under a TV only when the model’s instructions allow that arrangement and specify the required clearance.

Keep the finish presentable

Dust the exterior, clean the glass as the manual directs and keep air inlets and outlets clear. Save the manual, model details and electrician’s paperwork for the next owner.

Make the feature easy to verify

Photograph the finished installation and keep receipts with the home’s improvement records. A buyer or appraiser can see that the fireplace is a documented, code-compliant fixture rather than a loose appliance with an improvised connection.

A fireplace buying guide can help you compare room size, mantel designs and heat features before you commit to a wall layout: realistic electric fireplaces with mantels.

Frequently Asked Questions

Do electric fireplaces add measurable resale value compared to traditional fireplaces?

They can improve buyer interest and marketability, but the appraisal usually won’t value an electric unit like a built-in gas or wood fireplace. Research has found that homes with fireplaces sold for 12% more than homes without one, though that figure doesn’t isolate fireplace type, neighborhood, or installation quality. A removable electric unit may help presentation while contributing little permanent value.

Can electric fireplaces reduce homeowner insurance costs?

Usually, no automatic discount applies. An electric fireplace has no combustion, chimney, or gas line, which may avoid some fireplace-related underwriting questions, but each insurer sets its own rules. Tell your insurer about the installation and ask whether the model, wiring, and permits affect your premium.

Are electric fireplaces safe to install under TVs?

Yes, an electric fireplace can sit under a TV when the exact model’s clearance instructions allow it. Heat output, mantel depth, and mounting position vary, so don’t copy the spacing from another fireplace. Keep the heater’s exhaust clear and use the listed installation method rather than treating the unit like a decorative wall insert.

Do electric fireplaces require a dedicated electrical circuit?

A dedicated 15- or 20-amp circuit is the safer choice for a model with a built-in heater. A 1,500-watt heater draws about 12.5 amps at 120 volts, leaving little room on a shared circuit for other heavy loads. Have a licensed electrician add or verify the circuit if the installation requires new wiring, and plug the fireplace directly into the wall.

Is it worth installing an electric fireplace solely to increase home value?

Usually, no; resale value alone is too uncertain to justify the project. Install one when you’ll use the supplemental heat and flame effects, then treat buyer appeal as a possible bonus. A freestanding or easily removable model can move with you, while a well-finished built-in installation may present better but costs more to create.