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How Much Is It Going To Cost Me To Commute From Here?

By
Real Estate Agent with Transaction Alliance 513.520.5305 www.LizTour.com SAL.2002007747

Gasoline vs. SavingsHow Much Is It Going To Cost Me To Commute From Here?

Warren County is blessed with great access to Cincinnati and Dayton.  I75 connects Cincinnati and Dayton on the west side of the county and I71 runs north/south on the east side of the county connecting to Cincinnati, and SR48 adds to the ease of commute along with Rt 42 down the middle. 

Yet some people might think Lebanon and surrounding areas are "too far out".  Downtown Lebanon to downtown Cincinnati for instance is approximately 30 miles, and depending on traffic that commute will take you 30-60 minutes typically.  When you hear about some of the commutes across the country, we're pretty fortunate here.

But that "too far out" perception might be causing some home buyers to miscalculate on their home purchase.  Gas costs in particular might be clouding judgment.  Everyone feels the pain weekly as they stand at the pump and watch the meter spin wildly.  On the other hand, the mortgage check only gets cut once a month and many of us are probably on autopay, so the pain factor just may not be there.  Out of sight, out of mind, right?

So what can happen from this?  We may let the immediate and frequent pain influence our decision and lose the big picture of home ownership.  In our county, homes closer to Cincinnati typically cost more than homes farther out.  For instance, a typical Mason home usually costs tens of thousands of dollars more than the equivalent home in Lebanon.  Both area offer great quality of life, and the physical distance is less than 10 miles. 

What's your cost differential for gasoline to live in Lebanon vs. Mason if you're commuting to Cincinnati?  Probably not much more than $1000 ANNUALLY, and depending on what you're driving considerably less.  So ultimately, gasoline costs probably shouldn't be the primary driver in choosing your home.  You may actually SAVE more overall by SPENDING more on gas for a longer commute.  Of course your time has value too, so you'll have to factor that in also.

Just to help you calculate your annual gasoline consumption costs, we've constructed tables for each vehicle average MPG (miles per gallon) in 5 MPG increments starting at 15 MPG and ending at 40 MPG.  The left column is one way miles of commute.  We've used gas prices at .25 increments from $3 to $4.  We assume 250 days of commute a year (5 days x 50 weeks) and assume you have a minimum of two weeks vacation.

The formula for these tables is:

Annual Cost = ((# Miles traveled each way x 2)/Vehicle MPG) * Gas Cost * 250

Find the table that most closely approximates your car's MPG, find your one way commuting miles on the left, then slide over to the gas cost column to determine your annual gas cost.  Obviously gas costs vary, so this table provides an annual approximation only for your commute costs.  We hope this information helps you make the best possible choice for your Warren County home purchase!

Gas cost tables


Annual gas calculation tables


Serving Warren County's residential real estate needs,
Liz and Bill aka BLiz

Posted by

Serving Warren County Ohio & Adjacent Areas

The Liz Spear Team of Transaction Alliance
Elizabeth Spear, ABR, Ohio License SAL.2002007747

William (Bill) Spear, Ohio License SAL.2004011109  Kentucky 77938
Ask for us by name if you visit the office!

EHO
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Liz Direct: 513-265-3004     
Fax: 866-302-8418

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Comments(40)

Jeff Dowler, CRS
eXp Realty of California, Inc. - Carlsbad, CA
The Southern California Relocation Dude

BLiz

I love those tables - this is terrific information for people who really do want to calculate their travel costs. It seems folsk here worry more about the time - perhaps that's because we are such a car/distance focussed area. And deciding the time of day to commute cam make even more difference, perhaps doubling your travel time for the same distance at the peak of rush hour.

I'd have to adjust this table quite a bit - our base gas price is well above $4.00/gallon. :(

Jeff

Jun 09, 2012 01:27 AM
Karen Fiddler, Broker/Owner
Karen Parsons-Fiddler, Broker 949-510-2395 - Mission Viejo, CA
Orange County & Lake Arrowhead, CA (949)510-2395

Wow...what a great post, terrific service for those who commute. I wish we could take advantage of that $3/hour part. Sigh

Jun 09, 2012 01:53 AM
Kimo Jarrett
Cyber Properties - Huntington Beach, CA
Pro Lifestyle Solutions

Great perspective and useful information. A comprehensive real estate and financial analysis is essential to determine the reality and justification about choosing a community to reside and it appears your clients are fortunate to have you as their agent. Great post.

Jun 09, 2012 01:53 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Jeff, One of the advantages of the Midwest.  I think I paid $3.59 yesterday for the 87 octane.  Those commute times can be a killer.  I worked with someone at one of my suppliers in Tijuana and I think here daily commute was about 3 hours EACH WAY.  Ouch.  If you'd like the Excel tables, just let me know.  I can expand them out to about $6 to cover those Cali prices!

Karen, We haven't seen $3 lately, but I can dream that we'll go back in that direction :)

Kimo, It is a total package.  Taxes, insurance, HOA fees, mortgage, commute costs and more.  It all factors into the total cost of living for a particular community selection.

Jun 09, 2012 02:11 AM
Marte Cliff
Marte Cliff Copywriting - Priest River, ID
Your real estate writer

You certainly bring home the difference between the cost of driving vehicles that get poor mileage vs. good mileage.

My old Chevy pickup with it's 454 gets about 10 MPG - but I love it and it's paid for. And... most weeks I make only 2 trips in to town for groceries and errands. So I drive about 50 miles a week. Still - I would prefer sensible gas prices.

Jun 09, 2012 02:35 AM
Pamela Seley
West Coast Realty Division - Murrieta, CA
Residential Real Estate Agent serving SW RivCo CA

I just paid $4.31 at th pump the other day, so it's possible prices could go to $5. Your charts are a great tool for buyers to figure in commuting costs. I agree with your post that buyers should consider these costs before making a decision where to buy.

Jun 09, 2012 02:37 AM
Curtis Van Carter
Better Homes & Gardens Wine Country Group - Yountville, CA
Your Napa Valley Broker Extraordinaire

Hi

Just wanted to let you know I found this through a repost by Marte above.

AAA does an annual cost analysis which includes everythin from wear/tear, repairs, insurance and interest on a loan. Based on gas at around $3.00 per gallon here is what they state:

Based on Driving 15,000 miles annually

Small

Sedan

Medium Sedan

Large Sedan

Sedan Average

SUV 4WD

Minivan

Cost Per Mile

44.9 cents

58.5 cents

75.5 cents

59.6 cents

75.7 cents

63.4 cents

Cost Per Year

$6,735

$8,780

$11,324

$8,946

$11,360

$9,504

Pretty eye revealing, cheers cvc

Jun 09, 2012 02:45 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Marte, So many things factor into the right car and the right decision don't they?  There are times we wish we had a pick up truck, especially when it's time to get gardening supplies and the like.

Pamela, Those Cali taxes really take the price up.  We're in the mid-$3's here lately, but always subject to a quick uptick for no apparent reason.

Curtis, Thanks for the info!  Definitely a huge difference based on vehicle choice.

Jun 09, 2012 03:20 AM
Ann Wilkins
Golden Gate Sotheby's International Realty - Oakland, CA
Oakland, Berkeley, Piedmont CA

What a great chart.  Most of my buyers want an urban experience - I just had someone walk away from the perfect home because they would have to jump in their SUV to get anyplace.  Granted it would be less than 5 minutes but...they wanted the option to walk to coffee or to have public transportation close by.   We also have homes that are just 5 miles down the highway and their prices are hundreds of thousand dollars less.  Same city, just another 5 miles East.  How does snow and ice impact your commutes?  I could see wanting a closer in home if the winter commute was problematic.  You don't have much snow but I remember the ice.

Jun 09, 2012 04:29 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Ann, People want what they want sometimes, even if it costs them much more.  Last winter was EXTREMEMLY mild, almost no snow for some reason.  We're in the southwest corner of Ohio next to Kentucky, so our worst is maybe a foot.  If it's plain snow, not so bad.  The ice is definitely the worst.  They keep the highways in pretty good shape, but some of the secondary roads take longer to get cleared.

Jun 09, 2012 04:35 AM
Debbie Gartner
The Flooring Girl - White Plains, NY
The Flooring Girl & Blog Stylist -Dynamo Marketers

Awesome chart.  So smart.  One thing people forget though...if they are close, they still have gas costs too...so it's really the incremental miles.  You guys are the best.

Oh and gas costs more where we are...but so do homes...so I bet this equation will work even more to their advantage here.

Jun 09, 2012 05:52 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Debbie, With the significantly higher cost of homes in your area, proportionally I'd think gas cost would have even less impact overall as a part of the annual budget.  Maybe they use an extra $1-2000 in gas, but if you can get $100,000 off the home price by that extra commute it might just pay to drive those extra miles.

Jun 09, 2012 06:05 AM
Gene Riemenschneider
Home Point Real Estate - Brentwood, CA
Turning Houses into Homes

Interesting post.  Gas prices are not turning people away from the suburbs here, but the commute times might.

Jun 09, 2012 07:00 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Gene, Still plenty of folks buying in the immediate suburbs, it's the extended suburbs where we're seeing a bit of a drop off.

Jun 09, 2012 09:41 AM
Bob Miller
Keller Williams Cornerstone Realty - Ocala, FL
The Ocala Dream Team

Hi Liz and Bill, your post reminds me of renting while commuting to college 40 years ago.  At 1/2 the rent the 50 miles commute was worth it!

Jun 09, 2012 11:04 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Bob, Made total sense then and still might make sense now :)  The biggest variable is how much value to put on one's time, and how much a person loves/hates commuting?  Personally, for a limited amount of time I don't mind listening to the radio or CDs.

Jun 09, 2012 11:13 PM
Gary Frimann, CRS, GRI, SRES
Eagle Ridge Realty / Signature Homes & Estates - Gilroy, CA
REALTOR and Broker

Liz and Bill,  Great post!  almost funny in a way, but I too live in an area that is getting to be on the outer reaches of an "acceptable commute"-- I'm about 30 miles from the job core of Silicon Valley.  We've seen commute times increase lately as more jobs are added--a good sign for the economy-- but p[eople are still slightly hesitant to live far from work.  My father used to commute over an hour each way, albeit with less traffic.

Jun 10, 2012 05:35 AM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Gary, Timing on the commute is so critical.  Sometimes 10 minutes change might mean double that in stuck traffic.

Jun 10, 2012 08:54 AM
Ed Vogt
Midwest Properties of Michigan - Grandville, MI
Grandville, MI Midwest Properties

Great charts and thanks for providing them.  Here in Southwest Michigan, I work in the city, suburbs and country so this will come in handy when I need to have a talk with buyers who are hesitant because of the commute. 

Jun 13, 2012 11:58 PM
Liz and Bill Spear
Transaction Alliance 513.520.5305 www.LizTour.com - Mason, OH
Transaction Alliance Cincinnati & Dayton suburbs

Ed, Sounds like your market is VERY similar to ours.  A mix of everything.

Jun 14, 2012 12:55 PM