Median household income has
declined 4.4% since the official end of the recession in 2009, and is
6% lower than when we went into the recession in 2007. This enduring reduction
in the buying power of the American consumer may lead to a continued increase in
the use of wood and pellets, as more Americans seek cheaper alternatives to
oil, propane, and electric heating.
Source: The Washington Post. Fletcher, Michael. "Four years after end of recession, incomes remain depressed |
It is likely that the surge in wood
heating between 2000 and 2010 was partly due to reduced buying power and job
loss. During that time, wood and pellets were the fastest growing heating fuel
in America. States where unemployment was the highest typically saw even higher
growth in wood heating.
New studies show that lower income
families have locked in that reduced buying power since the end of the recession. Income growth in America over the past 10
years has disproportionately gone to the top and very top income groups. Those
income groups may be installing high-end outdoor kitchens and fireplaces, but
they rarely use wood or pellets as a primary heating source. Rather, the lower
income groups are more likely to rely on wood as a primary heating fuel,
according to Census Bureau statistics.
The long-term reduced buying power
of Americans is also likely contributing to the growth in the sales of less
expensive wood stoves such as those sold at big box stores. Industry experts say sales of wood
and pellet stoves at large hardware chains has grown significantly in the last
5 years. It also may be leading to
more sales of very cheap stoves that are exempt from EPA emission standards. And, it is likely leading to more
families continuing to rely on older stoves, instead of upgrading to newer,
cleaner and more efficient stoves.
Inflation adjusted median household
income is now about $52,000, compared to about $56,000 before the recession.
What is notable is that while unemployment continues to drop, from a high of
10% to 7.5%, median income has not risen.
Energy costs take a much bigger bite out of the incomes of families who
are below the median income range, leading to energy insecurity and reduced use
of HVAC systems.
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