How could high energy costs affect Sarah Sanders's management of Arkansas's housing market?
High energy costs may drive Arkansas toward earth-sheltered housing The high energy costs stemming from the oil embargo have historically and currently spurred interest in earth-sheltered housing in Arkansas. These structures are touted as lowering heating and cooling costs by 50-80 percent by utilizing earthen berms. However, this shift comes with challenges, as initial construction can run at least 20 percent higher than conventional building due to the need for specialized engineering and heavy excavation. As Governor, Sarah Sanders must manage state economic policy and address the resulting housing trends and construction challenges within the state.
- Effect
- Mild negative
- How direct
- Brind's reasoning
- When
- Over the long term
- The story
- No new developments lately
How it reaches Sarah Sanders
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The 1973 OPEC oil embargo strained the U.S. economy by causing crude oil prices to nearly quadruple, rising from about $2.90 to $11.65 per barrel. This led to sharp increases in residential heating oil and energy costs. Consequently, earth-sheltered structures were promoted as a way to lower heating and cooling costs by 50-80 percent.
The full event1independent outlet -
The shift toward specialized housing methods, which require heavy excavation and specialized engineering, puts pressure on state regulatory bodies and the Governor to manage construction standards and economic viability in the state.
No report states this step directly. Brind drew it from the reporting on each side of it, so treat it as an informed guess.
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Governor of Arkansas since 2023
Everything about Sarah Sanders
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The facts so far
As reported. Each one links to where it comes from.
- Crude oil prices nearly quadrupled from about $2.90 to $11.65 per barrel following the 1973 OPEC oil embargo.arkansasonline.com
- Earth-sheltered structures are touted as being capable of lowering heating and cooling costs by 50-80 percent.arkansasonline.com
- Initial construction of earth-sheltered homes can run at least 20 percent higher than conventional construction.arkansasonline.com
- Some local building codes or architectural boards have outdated ordinances, complicating the use of earth-sheltered housing.arkansasonline.com
Why it matters
The shift in housing preference toward earth-sheltered homes represents a significant, long-term change in the state's construction and energy consumption profile. For the Governor, this means managing a market transition where specialized construction methods are becoming more viable due to economic pressures, but which also introduces regulatory and financial hurdles.
This trend is not unique to Arkansas; the reports note that earth-sheltered housing has been a topic of interest since the 1970s-early 1980s solar boom. The current revival is driven by a combination of high energy costs, rising lumber prices, and the desire for disaster-resistant, long-lasting alternatives.
What we don't know yet
- What specific regulatory changes, if any, are being considered to address outdated local building codes?
- How will the state address the difficulty of securing specialized mortgages for these high-cost homes?
What would change this answer
Who else could feel it
Other possible ripples from the same event.
- EntergyLikelyHigh energy costs from the oil embargo may increase Entergy's operational expenses.
- Little RockPossibleLittle Rock's housing market may shift toward resilient, earth-sheltered alternatives
- Department of Human ServicesPossibleEconomic strain from oil embargo may increase demand for social assistance programs.
- Arkansas Public Service CommissionPossibleThe Arkansas Public Service Commission may need to manage utility rates amid high energy costs.
Reporting
- arkansasonline.comNov 1
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Brind's analysis is written by AI from the reporting linked above and can be wrong. This explainer is a possibility worth considering, not a forecast: steps marked as Brind's reasoning are not stated in the reporting. It is not investment advice; do your own research.