This paper discusses the multiple benefits and opportunities that improved energy efficiency in housing brings for all the three pillars of sustainable development. Environmental, macroeconomic, microeconomic benefits, social implications and energy security issues are discussed, along with a specific case of the transition country. It reviews the current state of development of energy efficient technology and international regulatory institutions and considers a number of barriers that hamper energy efficiency measures. These issues are discussed in light of five-IN approach (investment, information, innovations, incentives, initiative) presented in the paper. Based on this analysis, this paper finally considers policy implications and delivers policy recommendations.