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Second use building materials in Seattle often has had water heaters when I've been there. (Inventory list on line) We've gradually been replacing all our windows using their supplies, and the price is considerably less than new.I see both gas and electric ones for < $100 in today's inventory list.
I had an electrician replace my element last winter (I have a gas heater) and I think with labor and parts it was about $200. Didn't take him long to do. However, I am glad I had a pro do it because he showed me this metal screen the element had burned through, and it didn't look like something you'd want done wrong.
It could be the element. Some have 2 elements, one towards the top and one towards the bottom. The elements can get pricey. You can try to possibly find a used water heater on craigslist.org for pretty cheap.
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For Sale: $200,000
For Sale: N/A