Often times, home buyers get "more home for their dollar" the further outside a city they live. While this may be true at first glance, when you consider the cost of commuting to work and to services, it may be actually more expensive to live in a community further away than to live closer to a city.
I recently came across this study that looks at the costs associated with the constant need to commute to work and essential services:
For most families, transportation is the second largest household expense. The new analysis shows that for many families in "drive ‘til you qualify" zones, savings realized from lower cost housing are eliminated by unexpectedly high transportation costs. Yet it is difficult for consumers and policymakers to estimate the full costs of a location, including the cost of both housing and of transportation. This lack of information can lead families to unknowingly make housing decisions that cause them to live beyond their means as gas prices rise and commutes grow longer. A community's average transportation costs can range from 12% of household income in efficient neighborhoods with walkable streets, access to transit, and a wide variety of stores and services to 32% in locations where driving long distances is the only way to reach essential services.
"The Rockefeller Foundation is proud to have funded the H+T Index as part of our initiative to promote equitable and sustainable transportation," said Nick Turner, Managing Director at The Rockefeller Foundation. "This unique tool will give consumers the opportunity to make more informed decisions about where they can afford to live, and help provide policy makers with data to develop new policies and targeted investments that can reduce transportation costs. Transportation costs are often the second highest expense for working Americans-and the Rockefeller Foundation's initiative is committed to helping Americans re-think our transportation future as a critical way to expand economic opportunity."
The failure to provide Americans with affordable transportation and compact neighborhoods that support pedestrians and cyclists as well as drivers, increases the financial pressure on families, resulting in unstable household budgets, lack of savings, and even foreclosure, and places communities across the country, particularly those with inadequate transportation options, at greater risk.
Just another "something to think about" when you are buying a new home.
Gary Dwyer, Realtor
Exclusive Buyer Agent / Certified Residential Specialist
Buyer Agents of Boston
Comments(2)