How Each System Works

Split System: The most common HVAC configuration in LA. The compressor/condenser sits outside, the air handler/evaporator coil sits inside (in a closet, garage, or attic), and refrigerant lines connect them. Return and supply ducts distribute air through the home.

Packaged Unit: Everything — compressor, condenser, evaporator, air handler — in one cabinet outside. Ducts run directly from the unit through the wall or roof. Common in older SFRs, light commercial, and homes built in the 1950s–1970s that were designed for this configuration.

Packaged Unit vs. Split System: Full Comparison

Factor	Packaged Unit	Split System
Max SEER2 available	Up to 18 SEER2	Up to 26 SEER2
Upfront equipment cost	$3,000–$6,000	$3,500–$8,000
Installation — retrofit	Lower (replace same footprint)	Higher (need indoor space)
Indoor space required	None	Yes (closet, garage, attic)
Noise (indoors)	Very quiet (unit is all outside)	Moderate (air handler inside)
Lifespan	12–15 years	15–20 years (air handler)
Maintenance access	Easy (all in one place)	Two separate locations
Available as heat pump?	Yes — packaged heat pumps available	Yes — split heat pumps very common
Best use case	Flat-roof homes, commercial, no indoor space	Most residential homes

Common Configurations in Los Angeles

• Rooftop packaged unit: Very common in 1950s–1970s SFRs in Van Nuys and Sherman Oaks built on slabs with no attic or interior mechanical space
• Garage air handler: The most common LA split system configuration — condenser outside, air handler in the garage
• Attic air handler: Common in larger homes in Woodland Hills and the hills — requires insulated attic for efficiency
• Closet air handler: Increasingly common in newer construction and ADUs with limited square footage

Cost Comparison: New Installation vs. Replacement

Scenario	Packaged Unit	Split System
Replace existing same-type unit	$4,500–$8,500	$5,500–$12,000
New install on existing ducts	$5,000–$9,000	$6,000–$13,000
Full system + new ductwork	$10,000–$18,000	$11,000–$20,000
ADU or addition	$4,000–$7,500	$5,000–$9,000 (mini-split often better)

Which Should You Choose?

The answer is usually determined by your home’s existing configuration:

• If your home currently has a packaged unit on the roof → Replace with a new packaged unit (lowest cost, no duct modification needed)
• If your home has a split system → Replace with a split system (best efficiency options available)
• If you’re doing new construction or a full redo → Split system almost always wins for efficiency and lifespan
• If you have no indoor mechanical space → Packaged unit or mini-split are your options

Frequently Asked Questions

What is a packaged HVAC unit?

A packaged unit (also called a rooftop unit or package unit) combines the compressor, condenser, air handler, and sometimes furnace in one cabinet installed outdoors — typically on the roof or concrete pad beside the home. Air ducts run directly into the building from the unit. No separate indoor air handler is needed.

Is a packaged unit or split system more efficient?

Split systems are generally more efficient — the best split systems reach 26 SEER2, while packaged units top out around 18 SEER2. Split systems separate the heat-generating compressor from the indoor air handler, allowing better heat exchange. However, packaged units with modern scroll compressors are reasonably efficient (up to 18 SEER2).

When would I choose a packaged unit over a split system?

Choose a packaged unit when: you have no indoor mechanical room or closet for an air handler, you have a flat roof (commercial/residential with roof access), you’re replacing an existing packaged unit and ductwork is already configured, or you need a simple all-in-one solution for a light commercial application.

How long do packaged HVAC units last?

Packaged units typically last 12–15 years — slightly less than split system air handlers (15–20 years) because all components are exposed to outdoor weather. Rooftop units take more UV, rain, and temperature cycling than ground-level equipment. Annual maintenance is especially important for packaged units.

Do packaged units cost more or less than split systems?

Equipment costs are similar ($3,000–$7,000), but installation can be cheaper for packaged units when replacing an existing one (no separate air handler to install). Installing a brand-new packaged unit system (including new ductwork) on a home costs roughly the same as a split system.