Transportation Costs Outstrip Housing Among Working Families
Posted by: EvanOct 12 2006, 10:15 am
A study released this week finds that working families (incomes $20,000 to $50,000) are spending more of their income on transportation (29.6%) than housing (27.7%). The study is an important reminder that moving farther away from work to find more affordable housing may not save a household money, as less visible transportation costs can eat up the savings.
Portland's numbers were about average for the study of 28 metro areas.
From the press release:
Conducted by the Center for Housing Policy, the research affiliate of the National Housing Conference (NHC), the study also found that the combined burden of transportation and housing costs for working families was remarkably constant across all the Metropolitan areas studied at an average of 57 percent of annual income.
In 17 of the 28 Metropolitan areas studied, the average transportation expenses for working families with annual incomes ranging from $20,000 to $50,000 are higher than their housing costs. While the share of income that working families devote to housing and transportation differed from Metro area to Metro area, the combined burden of the two expenses was remarkably similar across all areas. These combined costs range from a low of 54 percent in Pittsburgh to a high of 63 percent in San Francisco, with 25 of the 28 Metro areas
within three percentage points of the average combined burden of 57 percent.
Numerous policy recommendations have emerged as a result of these findings, including the finding that it is essential for regions to coordinate housing and transportation policies – one example includes building more affordable housing near existing and planned transit hubs.
That was a very interesting study to begin with. Now, we know that even though they have found a more affordable house, they have to way to paying more for their transport fees, which of course is not a good sign. It tells us that those properties near to the business area will never be affordable but a privilege for few.