Placing any water heaters downstairs in your basement or utilities room, in a two or more level home, is the norm but is it the best configuration for how the water has to travel? It has to heat within the unit then travel over to the kitchen or up to the bathrooms one or two floors up. On one hand, the plus side of keeping it in the basement, or utility room on the first floor, is that it has its own designated space.
This makes repairs easier and it makes any leaks easier to handle on the cement, linoleum, or tile floors. On the other hand, the plus side of having the tank upstairs is three fold. First, you will have easy access for any upstairs plumbing issues. Second, due to the reduced travel, the water pressure can be greatly improved. Third, you are less likely to run out of hot water if the device doesn’t have to work as hard to generate it and transport it to rooms on different floors. The only downside is that it may have to share space with your upstairs laundry or any leaks may dampen and damage any upstairs carpeting or hardwood flooring that you’ve had installed. But, the location of your water heaters, for this home or your next, is up to your house size and household hot water needs.