How Green was 2008: Analysts Versus Reality

by Mary Ann Romans | More from this Blogger

05 Jan 2009 10:55 AM

Back in the beginning of 2008, or even at the end of 2007, analysts were predicting a banner year for going green in the home. Homeowners were said to be very conscious of reducing the energy footprints of their homes and avoiding using common chemicals that may be unhealthy.

Even publications such as the Old Farmer's Almanac got into the act with green predictions saying that there would be a rapid transition to green building. They quote the American Institute of architects that say that 90 percent of home owners would pay an extra $5,000 for an energy-efficient house.

The reality is a little different. When fuel prices soared, builders were quick to add solar panels and geo-thermal heating and cooling units, hoping that energy efficient homes would attract buyers. But then the housing downturn occurred and not many people were buying at all. Now, with oil prices actually dropping, but doing so in a still tough economy, people are less likely to pay a premium to go green if they can afford to buy a new home at all.

There is no doubt that pretty much everyone wants to go green, but right now, I don't think everyone wants to pay for it. One compromise that builders may be able to make is to stock a new home with energy efficient appliances and energy efficient windows that can do a lot to lower energy bills, while leaving the pricier upgrades out of the picture. This way, the cost of the final home may more more affordable yet attractive in saving energy. Smart upgrades are the key, especially if builders can work with utility companies to find cost effective ways to save energy. This way everyone wins. It will cost less to go green and save more.

What do you think?

Mary Ann Romans writes about everything related to saving money in the Frugal Blog, creating a home in the Home Blog, caring for little ones in the Baby Blog and now relationships in the Marriage Blog. You can read more of her articles by clicking here or subscribe to the blog using the subscription box on the right.

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Learn more about Mary Ann Romans

Mary Ann Romans is a freelance writer, wife and mother of three children. She lives in Pennsylvania with her husband, the kids and a 16-pound cat.

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