Drive Down Home Costs by Downsizing

Cost savings is a huge motivator for those seeking to downsize. When the house and property shrink, generally so do the expenses associated with homeownership. Along with a reduced mortgage payment and less property maintenance service fees, sliced utility bills prove to be a long-term financial savings. As the "Great Recession” and its aftermath continues to put the economic squeeze on local municipalities and governments, many homeowners are finding their cost for gas and electric going up thanks to rate hikes and tax increases. Homes account for about one-fifth of the United States’ total annual energy demand, and heating and cooling the interior of our homes consumes the largest portion of residential energy – about 44 percent. Saving on home energy use has taken on a new, more important meaning, and it affects even those not necessarily concerned about aiding the environment – everyone’s wallet is hit.

Smaller homes generally require less to heat and cool. Without unused guest rooms, kids’ rooms or storage rooms to heat and cool, keeping the smaller home comfortable for all seasons means taking care of only the rooms that are lived in. With fewer square feet and cubic feet to energize, better cash flow is virtually guaranteed. Although the figures vary widely depending on the region in which you live, the cost to heat a 2,500 sq ft home will range from $150 (for gas) a month to more than $400 (for electric) a month.

For the ambitious "green” crowd that is thinking about installing a solar or wind system for the home, a smaller home means that you will be able to buy a smaller renewable energy system, which is much less expensive and more easily integrated with the house. Science has proven that lessening the use of air conditioners and heaters in homes and offices could make a major impact on global warming, which is where small homes come into play, proving that less is more as it pertains to contribution to the planet’s ecology. We may be witnessing the end of the era of building increasingly big homes, which has created environmentally inefficient living environments across the country.

Energy efficiency is part and parcel to the small-home movement sweeping the land. Small, "green” prefabricated homes are becoming increasingly popular, and the new owners of these homes are very aware of the value of reduced energy use. The energy savings in electricity for powering fewer and smaller appliances is another source of cost reduction. These green prefab houses may be constructed with passive solar technologies, high-efficiency fixtures and appliances, and more-than-sufficient insulation.

With builders in the United States striving for net-zero energy consumption homes in the next decade, residential green design and the small-home downsizing trend are on parallel paths. Both offer the same solution and coexist as a pair of the most cost-effective strategies toward greening our planet and saving homeowners money.


Want to learn more about how to lower electric? Visit my website at http://www.thesmallerhome.com to learn all about how to downsize your home and reap the benefits of a simpler lifestyle.

Andrzej Kozlowski has written numerous articles on topics ranging from home downsizing to simple living. He is also editor and co-author of the book, "Living Smart: The Money Saving, Eco-Friendly Guide to Downsizing Your Home and Belongings.”