A water heater leak is one of the surest signs that you need a new unit. One of the main causes is a corroded tank, and unfortunately, this is not something that can be repaired.
Instead of replacing your old unit with another traditional water heater, you may want to think about having a tankless system installed instead. These kinds of systems have been popular in Asia and Europe for decades and are beginning to grow in popularity in the United States. They provide an endless supply of hot water and can save you money on your energy bills in the long run.
The reason they can do this is that tankless systems only heat water on demand, while a traditional system continually heats water 24 hours a day, seven days a week. Tankless systems are also much smaller and can be installed in several different areas of your home. This will free up space that you can use for storage or anything else you want.