Energy prices altering lifestyles

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Record high energy prices haven't ended America's love affair with big cars and houses, but they have accelerated a trend toward living closer to downtown and looking for ways to cut fuel costs.

Demand for houses in or close to city centers has been on the rise since the turn of the century, originally prompted by dissatisfaction with long commutes and increasing traffic congestion.

"Americans are moving back to their urban centers," said J. Ronald Terwilliger, partner at Trammell Crow Residential in Atlanta, attributing the trend to congestion, high gasoline prices and "people's desire to live closer to where they work, where they shop."

The closer proximity to work and shopping reduces driving and gasoline costs -- now averaging near $2 a gallon -- and makes walking and public transit convenient in many cases.

A study this past summer by the National Association of Realtors and Smart Growth America found that reducing long commutes is the top priority of home buyers.

Among people planning to buy a home in the next three years, 87 percent said a shorter commute was the most important goal, the study found. Six in 10 preferred a neighborhood close to work, with sidewalks and within walking distance of shops, restaurants, libraries, schools and public transportation.

The trend has been particularly strong in the Washington area, local real estate business people say, with both the city and close-in suburban centers like Silver Spring, Arlington, Ballston, Chevy Chase and Bethesda benefiting.

Demand for housing in the city has skyrocketed so much that developers are profiting by converting office buildings into condos, particularly around metro stops, said John H.C. Barron Jr., a real estate attorney with Duane Morris.

Although the national survey found more than half of Americans still prefer to live in larger homes with the bigger plots more typical of the suburbs, people are willing to sacrifice space as long as they are compensated with pricier amenities, such as top-of-the-line kitchen and laundry appliances, said Blanche Evans, a real estate author.

"Luxury town homes are in. McMansions are out," she said, noting that homeowners want top-end dishwashers and dryers that are quieter and less obtrusive, as well as more efficient on energy and water use.