People often assume that living in the suburbs is safer and cheaper than living in cities. But when factoring in the hidden cost of transportation, living in the suburbs does not offer the savings that many suburbanites thought there would be.
What Studies Have Shown
A recent analysis by the Center for Neighborhood Technology (CNT) indicates that only 2 out of every 5 communities in America are actually affordable, once transportation costs are factored in with overall housing expenses. According to the survey, transportation is the second largest household expense. Transportation costs averaged approximately 12% in communities where there are walkable streets, public transportation, and a variety of nearby stores and services. However, in communities where driving farther distances to reach stores and services is the only means to get anywhere, the cost of transportation rises dramatically, up to 32%. There were over 300 metro areas across America that were examined utilizing the Housing and Transportation Affordability Index for purposes of the report. The Housing and Transportation Affordability Index is a tool utilized by the CNT, which looks at median incomes for a specific area, and then calculates the true cost of living in an area by combining general housing costs combined with transportation costs. Scott Bernstein, President of CNT, was quoted as stating that, “Cities are more location efficient – meaning key destinations are closer to where people live and work,” in an article by Barbara Kessler, of Green Right Now.
Boston
In an April 12, 2010 article in the Boston Globe, reporter Eric Mascowitz released findings from the Urban Land Institute regarding comparisons of transportation costs between cities and suburbs of Boston. According to the article, the study found that 1 in 4 areas included in the study had combined general housing and transportation costs exceeding 58% of the median income, posing an “extreme burden.” As a result of the study, entitled, The Boston Regional Challenge,” a website was launched at bostonregionalchallenge.org. Consumers can visit the website and calculate the combined costs of housing and transportation for every area of the region.
Los Angeles
In Los Angeles, California, even a decade ago, studies and reports were demonstrating that transportation costs were much higher for those living in suburbs. In a December 1, 2000 article published in the LA Times, reporters Doug Shuit and Monte Morin wrote that the costs of driving were significantly higher, the further away one got from Southern California’s core cities.
Washington, D.C.
When the Urban land Institute looked at area in and around Washington, D.C., similar conclusions were made in their study, as had been made when the ULI had studied transportation costs as part of overall housing costs in other areas around the country. Their study of the D.C. area, released by Washington Examiner Staff Writer, Kytja Weir, on February 9, 2009, found that people living in the center of the region had the lowest housing and transportation costs of any other group, at $29, 718 annually, while those in the inner suburbs paid out $37,840 and those living in outer suburban areas had the highest costs at $39,553. The study concluded that the savings people thought they had by living in suburbs was offset by housing costs.
Looking at results of various studies conducted regionally and nationwide, over a period of at least a decade, one may want to consider the hidden cost of transportation in to overall housing costs when living in or considering moving to the suburbs.
