Transit Makes Homes More Affordable
So says the Minneapolis Star-Tribune editorial page, responding to the work of CNT and the Center for Transit Oriented to develop a new measure of housing affordability, one based on the combined costs of housing and transportation, as opposed to just housing alone. The costs of housing and transportation, after all, go hand in hand. The location of neighborhood we live in, the prevalence of local services, the quality of alternative transportation options—all these determine the extent to which we must drive, which in large part determine our transportation costs.
So as you sit down to make your rent or mortgage payment at the end of the month, think about the hidden transportation costs not included in your payment. When you factor those costs in, does this change your perception of how affordable your housing is? If you knew what these were, would this information factor into your next decision about where to live? Read the Star-Tribune piece and decide.
StarTribune.com
Last update: February 21, 2006 – 6:33 PM
Editorial: Transit Makes Homes More Affordable
New study sheds light on high cost of driving.
Lyricist Sammy Cahn wrote famously that “love and marriage go together like a horse and carriage.” The same might be said less poetically about the cost of housing and transportation.
The Brookings Institution makes that point in a new study using the Twin Cities as a model. Buying a home some distance from shopping and transit might seem cheaper and a better deal. But when you factor in driving for every trip, the costs quickly add up. Many “affordable” homes aren’t quite what they appear.
One reason Brookings selected Minneapolis-St. Paul was its low housing prices compared with coastal cities and its extremely high transportation costs. More than half of local households spend more than $10,000 a year owning and operating cars. That cost will rise in the future, given demands on oil supply and instability in oil-producing countries. It would be useful for families to consider those costs when choosing a home, the report suggests. And it would be wise for governments to consider those costs when making transit and land-use decisions.
A family of three living in auto-dependent Farmington with the primary earner working in downtown Minneapolis and earning $43,500 could, for example, save $8,200 a year by moving to south Minneapolis near the Hiawatha light-rail line, or $4,800 a year by moving to Fridley near the proposed Northstar commuter rail line, based on a combination of cheaper housing and cheaper commuting.
The point isn’t to urge people to move, but rather to remind them how transportation and housing costs vary. People who are able to eliminate one family car and several long driving trips per day can divert thousands of dollars into other priorities.
For policymakers, the implications are just as clear. Every investment in transit makes housing potentially more affordable. Every job created in a dense job environment creates opportunities for transit and possible savings on housing. Any neighborhood designed to encourage walking for errands and riding transit to work cuts both costs and road congestion. Brookings’ “affordability index” is a helpful model for consumers, developers, planners and politicians to consider.
©2006 Star Tribune. All rights reserved.
