Feb 16 - McClatchy-Tribune Regional News - Steve Brown The Dallas Morning News

Homebuyers seem at odds in their response to higher energy costs.

On one hand, they are demanding more energy-efficient homes to save them money on utility bills.

But they are still willing to burn more high-priced gasoline to commute farther to that new house.

Those are two of the findings from the latest survey of new homebuyer preferences. The report was released this week at the National Association of Home Builders' annual conference here.

"About one-fifth said they would not mind taking a longer commute, in spite of the gas," said Gopal Ahluwalia, the NAHB's chief researcher. "We are finding so far the effect of higher gas prices is not a concern."

Sixty-three percent of prospective homebuyers said they were interested in a house in the outlying suburbs or in a rural area. Only 7 percent said they wanted to live in the central city.

"So far the consumer is still thinking he will not mind living far off in a rural area and driving long distances," Mr. Ahluwalia said.

But homeowners are trying to get a handle on utility bills.

"Of the 10 features that were listed as essential must-haves, four were energy-rated," he said.

Only the size of the house rated ahead of energy-efficient features on buyers' shopping lists, the NAHB survey found.

Until recently, buyers were less interested in energy-saving add-ons and most said they weren't interested in paying more for them.

But in the latest poll, potential buyers said they would on average pay $8,964 more for upgrades and features to save on utilities.

"They still want larger homes -- larger than what they are living in," Mr. Ahluwalia said.

In 2007, the average size of a new single-family home topped 2,500 square feet. That's up 17 percent from 1997's average.

"We don't think the home size will keep rising any more -- it will stabilize," Mr. Ahluwalia said. "But the volume is changing -- ceiling heights are moving up."

Most new homebuyers now insist that their ceilings be nine feet or higher. For decades, the standard was eight feet.

One area buyers are willing to cut back is in formal living space.

"The living room is on the chopping block -- it's vanishing," Mr. Ahluwalia said.

Last year, more than 40 percent of homes built in America had no living room. Instead, buyers are using that square footage to get more room in other parts of the house or to add specialty space.

More than half the buyers in a recent Better Homes and Gardens magazine survey said they wanted a home office that could be used for full-time work, said editor Gayle Butler.

The magazine's polls also find homebuyers are interested in the environment and saving energy. "Fifty-seven percent said they wanted green options," Ms. Butler said. Only 3 percent weren't interested in these features.

Potential homebuyers are also looking to take advantage of the current housing downturn.

More than 40 percent said they were looking for sales incentives and discounts before they would buy. "Only 13 percent said they were going to sit out this market," Ms. Butler said.