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Of course, I have the opposite problem, which is that I have to wait 2 minutes for any hot water to get to my faucet. An instant heater would only exacerbate the problem. I'm thinking about installing a hot water recirc system so that I'm not wasting so much water.

The house I grew up in was fairly standard for California- a big tank water heater near the garage, far away from the bedrooms and bathrooms.
We installed a small (3gal) electric-heated tank under the house near the baths.
Voila! No more waiting for minutes while the pipes warmed up.
Also, as the main tank ran cooler the small heater would boost the temperature- near endless showers could be had.

Building a recirculating system seems like a lot of effort to me, what with pumps and new pipes and all.
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