Tankless or Tank?

I am building a coach house.

It is 967 square feet, has two bedrooms, one bathroom with a tub/shower and one sink and one kitchen/living area.

The kitchen sink and dishwasher are about 20 ft from the mechanical closet. The bathroom and laundry closet share walls with the mechanical closet.

I do not have gas at the coach house and was looking in to electric water heaters vs electric tankless water heaters and was just curious about thoughts and opinions on them.

It would obviously be nice to save the space and not have a tank but I do have concerns about tankless output. I hear weather can play a factor and we currently live in the PNW on the coast.

Would love to hear people’s thoughts and suggestions.