According to Research Economist, Selma Lewis, a recent study titled "Location Efficiency and Mortgage Default" revealed that "the probability of mortgage foreclosure increases as neighborhood vehicle ownership levels rise".
According to the Natural Resources Defense Council, location-efficient communities are neighborhoods where residents have access to a variety of transportation options. The most important determinants of location efficiency are: the compactness of residential development and the proximity of public transportation. Location-efficient areas are located in close proximity to a number of services, require shorter travel distances to access those services. They are also characterized by a concentrated business district or downtown area, and more opportunities to walk, bike, or use transit.
Based on the same idea, The Center for Neighborhood Technology developed The Housing and Transportation Affordability Index which takes into account not just the cost of housing, but also its location efficiency, by measuring the transportation costs associated with place. Find the Affordability Index for your metropolitan area at http://htaindex.cnt.org/.
(Copyright National Association of REALTORS®, Reprinted with permission.)
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