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The Impact of Energy Efficient House Construction on Homeownership Costs: A Comparative Study in Gainesville, Florida
Author(s) -
Smith Marc T.,
Jones Pierce
Publication year - 2003
Publication title -
family and consumer sciences research journal
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.372
H-Index - 31
eISSN - 1552-3934
pISSN - 1077-727X
DOI - 10.1177/1077727x03255947
Subject(s) - purchasing , unit (ring theory) , affordable housing , business , value (mathematics) , energy (signal processing) , economics , agricultural economics , finance , operations management , economic growth , statistics , mathematics education , mathematics , machine learning , computer science
The goal of this study was to determine whether the Energy Star home program, as implemented in Gainesville, Florida, is reducing energy use and therefore costs relative to other homes and the extent of the savings. Analysis of Energy Star qualified houses found the savings were appreciable and statistically significant. The indicated energy savings for the average Energy Star household were $180 per year, which was capitalized to indicate a value increase of the average housing unit of $4,500 and the ability to afford a mortgage of $2,255 more than in the absence of the energy savings. The financial implications of these savings suggest that affordable housing policy needs to factor in continuing ownership costs in addition to the cost of the structure (the ‘first cost’) associated with purchasing a home. If the operating costs can be reduced, then the ability of a household to afford homeownership is improved.