Desperation, but Good Desperation in Local Housing Market

Want to roll a Prius into your mortgage?

The fallout from the subprime mess has come to my neighborhood. This ad appeared in the community paper put out by the developer:

desperation.jpg

Now, you can get a free Prius with the standard solar you get on Harvard Communities’ (massively overpriced) Architect Collection homes. From an economic perspective, it makes a lot of sense for the builder to install solar; it costs them a lot less to do it than people who have to retrofit. But what’s the logic in having the builder fill your garage?

See the solar panels

These developers (especially the high end ones- these’ll set you back $800K) will do anything to avoid having to lower their price. Personally, I think they’re smart, people are more interested in buying things for status than practicality.

The world is crazy, but I shouldn’t complain. It may just get some people out of SUVs and into Hybrids.

But it does bother me that the most important energy efficiency things Harvard Communities is doing are quite cheap (good insulation, sealing the house well, using efficienct appliances) but it’s the splashy expensive stuff like a free car and PV that gets all the press. It makes people think that you have to spend a lot of money to be energy efficient. You don’t, but it’s a belief that is liable to keep coming back to haunt us for a long time.

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