News for March, 2010
Tuesday, March 23rd, 2010
CNT has updated our Housing + Transportation Affordability website to now cover over 330 metros in the U.S. with expanded and improved data. And our analysis shows that only two in five American communities—or 39 percent—are affordable for typical households when their transportation costs are considered along with housing costs.
The Index for the first time examines 337 metro areas across the country—161,000 neighborhoods and 80 percent of the U.S. population—to provide the only comprehensive snapshot of neighborhood affordability by taking into account the transportation costs associated with neighborhood location and design. Read more of the findings in this brief
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Posted in Featured Portfolio News, H+T, Transportation and Community Development | 12 Comments »
Tuesday, March 23rd, 2010
National H+T Index Counts Housing and Transportation Costs for 337 Metro Areas, Highlights the High Costs of Transportation in Many Communities
WASHINGTON, D.C. – A new analysis by the Center for Neighborhood Technology (CNT) shows that only two in five American communities—or 39 percent—are affordable for typical households when their transportation costs are considered along with housing costs.
The Housing + Transportation (H+TSM) Affordability Index, unveiled today, examines 337 metro areas across the country—encompassing 161,000 neighborhoods and 80 percent of the U.S. population—and provides the only comprehensive snapshot of neighborhood affordability by accounting for combined housing and transportation costs associated with a community. The H+T Index and its accompanying report, Penny Wise, Pound Fuelish, illustrate the direct link between household transportation costs and the location and design of neighborhoods and transit options.
Under the traditional definition of housing affordability (30% or less of household income spent on housing), seven out of ten U.S. communities are considered “affordable” to the typical household. But in almost all metro regions of the country, when the definition of affordability includes both housing and transportation costs—at 45% of income—the number of communities affordable to households earning the area median income decreases significantly. Nationally, the number of affordable communities declines to 40 percent, resulting in a net loss of 48,000 neighborhoods with combined housing and transportation costs that stress the average family’s budget.
“Across the nation, families are dealing with the economic crisis and looking at their bottom lines to determine how they can save money and plan for the future,” said Congressman Earl Blumenauer (D-OR). “The H+T Index provides valuable information about the two biggest household expenses, housing and transportation. This index will help policymakers level the playing field to improve location efficiency, and it will help lenders educate consumers about the trade-offs and costs associated with their housing choices.”
For most families, transportation is the second largest household expense. The new analysis shows that for many families in “drive ‘til you qualify” zones, savings realized from lower cost housing are eliminated by unexpectedly high transportation costs. Yet, it is difficult for consumers and policymakers to estimate the full costs of a location, including the cost of both housing and of transportation. This lack of information can lead families to unknowingly make housing decisions that cause them to live beyond their means as gas prices rise and commutes grow longer. A community’s average transportation costs can range from 12% of household income in efficient neighborhoods with walkable streets, access to transit, and a wide variety of stores and services to 32% in locations where driving long distances is the only way to reach essential services.
“The Rockefeller Foundation is proud to have funded the H+T Index as part of our initiative to promote equitable and sustainable transportation,” said Nick Turner, Managing Director at The Rockefeller Foundation. “This unique tool will give consumers the opportunity to make more informed decisions about where they can afford to live, and help provide policy makers with data to develop new policies and targeted investments that can reduce transportation costs. Transportation costs are often the second highest expense for working Americans – and the Rockefeller Foundation’s initiative is committed to helping Americans re-think our transportation future as a critical way to expand economic opportunity.”
The failure to provide Americans with affordable transportation and compact neighborhoods that support pedestrians and cyclists as well as drivers, increases the financial pressure on families, resulting in unstable household budgets, lack of savings, and even foreclosure, and places communities across the country, particularly those with inadequate transportation options, at greater risk.
“In recent years we have seen foreclosures increasing faster in outer suburbs than in central cities. When gas prices peaked in 2008, families in many regions saw their transportation costs soar by $3000 per year or more. When communities have few transportation options and require driving long distances for basic necessities, already stressed household budgets are very vulnerable to spikes in gas prices and rising transportation costs.” said Scott Bernstein, president and founder of CNT. “The H+T Index gives a reliable estimate of each neighborhood’s average household transportation costs, a strong move toward a “no surprises, no sticker shock” home buying or renting experience.”
The H+T Index is the nation’s most comprehensive assessment of household transportation costs by location. The H+T Index is an innovative tool that analyzes transportation costs at a neighborhood level and allows users to view housing and transportation data as maps, charts and statistics for 337 metro areas, revealing the relative costs of communities within a region.
To explore the H+T Index or obtain a copy of Penny Wise, Pound Fuelish visit: http://htaindex.cnt.org/.
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ABOUT CENTER FOR NEIGHBORHOOD TECHNOLOGY
Since 1978, the Center for Neighborhood Technology (CNT) has been a leader in promoting urban sustainability – the more effective use of existing resources and community assets to improve the health of natural systems and the wealth of people, today and in the future. CNT is a creative think-and-do tank that combines rigorous research with effective solutions. We have tackled a wide range of issues, always with an eye toward simultaneously improving the environment, strengthening the economy, and advancing equity. We work across disciplines and issues, including transportation and community development, energy, natural resources, and climate change. CNT is one of eight nonprofits selected from around the world to be recognized by a 2009 MacArthur Award for Creative and Effective Institutions, from the John D. and Catherine T. MacArthur Foundation. More information is available at www.cnt.org.
Posted in Press Releases | 5 Comments »
Friday, March 19th, 2010
On Thursday, March 18, the Illinois Senate passed the Housing + Transportation Affordability Index Act, SB 374. We have been working with legislators since early 2009 to advance this landmark piece of legislation. The bill will now move to the House, which passed an identical bill last year with a near unanimous vote.
If passed, SB 374 (formerly known as SB 414) will ensure that five state agencies in Illinois take both housing and transportation costs as a benchmark for affordability into account when planning and making public investment decisions within Metropolitan Planning Organization (MPO) Areas around the state.
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Posted in Featured Portfolio News, H+T, Policy, Transportation and Community Development | No Comments »
Friday, March 19th, 2010
HIDDEN COSTS OF TRANSPORTATION PUT HOUSEHOLDS & COMMUNTIES AT RISK
U.S. Rep. Earl Blumenauer, Center for Neighborhood Technology, Rockefeller Foundation to discuss federal action to redefine affordability, call for disclosure and smarter investment in transportation choice
Download this media advisory (PDF)
WHAT: On Tuesday, March 23, Representative Earl Blumenauer (D-OR) will join experts from the Center for Neighborhood Technology and the Rockefeller Foundation to discuss the findings of the new Housing + Transportation Affordability Index and its accompanying report, Penny Wise, Pound Fuelish. The Index for the first time examines 337 metro areas across the country—encompassing 161,000 neighborhoods and 80 percent of the U.S. population—to provide the only comprehensive snapshot of neighborhood affordability by taking into account the transportation costs associated with neighborhood location and design.
The H+T Index is an innovative tool that allows users to view maps and statistics for 337 metro areas, revealing where transportation costs have the greatest impact on affordability within each area. The H+T Index shows that once transportation costs are factored into the definition of “affordable housing,” the number of affordable communities drops in almost every metro area in the country, putting a total of 48,000 American communities out of reach for the typical family.
WHO: U.S. Representative Earl Blumenauer (D-OR)
Secretary Shaun Donovan, Housing & Urban Development (tentative)
Secretary Ray LaHood, Department of Transportation (tentative)
Scott Bernstein, President of the Center for Neighborhood Technology
Randy Blankenhorn, Executive Director of the Chicago Metropolitan Agency for Planning
Nick Turner (moderator), Managing Director of the Rockefeller Foundation
WHEN: Tuesday, March 23, 2010
11:00 AM EST
RSVP: Contact Paula Chrin Dibley, pchrin@mrss.com, 202-478-6138, for call-in information.
WHY: For most families, transportation is the second largest household expense. The new analysis shows that for many families in “drive ‘til you qualify” zones, savings realized from lower cost housing are eliminated by unexpectedly high transportation costs. This lack of information can lead families to unknowingly make housing decisions that cause them to live beyond their means as gas prices rise and commutes grow longer. A typical household’s transportation costs can range from 12% of household income in efficient neighborhoods with walkable streets, access to transit, and a wide variety of stores and services, to 32% in locations where driving long distances is the only way to reach essential services. Despite this expense, it is difficult for consumers and policymakers to estimate the full costs of a location, including the cost of both housing and of transportation. The H+T Index fills the void, giving an accurate assessment of affordability in 337 metro areas for the first time.
CONTACT:
PAULA CHRIN DIBLEY, 202-478-6138
PCHRIN@MRSS.COM
KATLYN CARTER, 202-478-6176
KCARTER@MRSS.COM
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Since 1978, the Center for Neighborhood Technology (CNT) has been a leader in promoting urban sustainability – the more effective use of existing resources and community assets to improve the health of natural systems and the wealth of people, today and in the future. CNT is a creative think-and-do tank that combines rigorous research with effective solutions. We have tackled a wide range of issues, always with an eye toward simultaneously improving the environment, strengthening the economy, and advancing equity. We work across disciplines and issues, including transportation and community development, energy, natural resources, and climate change. CNT is one of eight nonprofits selected from around the world to be recognized by a 2009 MacArthur Award for Creative and Effective Institutions, from the John D. and Catherine T. MacArthur Foundation. More information is available at www.cnt.org.
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Friday, March 12th, 2010
CNT Research Director, Linda Young, at the Chicago press conference in Union Station.
March 11th marked Transportation Freedom Day for the Chicago area—the date on which a typical area household has earned enough income to cover its annual transportation costs. In the Chicago region, it takes the average household 70 days to make enough money to cover their transportation costs. That’s about $8,300 per year, though costs vary widely in the region. For example, in Chicago’s Roscoe Village, transportation costs are only about $7,000 annually, whereas in suburban West Dundee, costs increase to almost $11,800 annually. In contrast, residents of New York City only spend about $5,400 on transportation each year.
In transit-rich neighborhoods within walking distance to retail, schools and recreation such as Roscoe Village and the South Loop in Chicago, household transportation costs are lower, and residents spend 6-8 weeks of pay for annual transportation costs. In dispersed communities, far from jobs and with no access to transit, such as West Dundee and Sugar Grove, households spend up to 13 weeks of wages on annual transportation costs.
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Thursday, March 11th, 2010
Local Leaders Must do more to Save on Transportation Costs
Chicago, IL – On Thursday, Chicago residents celebrate Transportation Freedom Day, the date a typical area household has earned enough to cover its annual transportation costs. To mark the occasion, community and transit advocacy groups joined together at Union Station to push for better transportation. It is based on Census data includes gas, repairs, parking, vehicle depreciation and transit fares.
“Transportation Freedom Day is an eye opener,” stated Kate Lehman of Illinois PIRG. “It shows the need for greater investments in more efficient ways to get around, such as public transit. When government makes the right kind of transportation investments, citizens save a lot of money.”
Americans on average spend an astounding 19 percent of their annual income on transportation, far more than they pay for food, clothing, entertainment, income taxes or even health care. New findings released by the Illinois Public Interest Research Group (Illinois PIRG) show that a typical Chicago household shells out the equivalent of 19 percent, or 70 days of a typical annual salary to pay for transportation costs. In more walkable communities and better transit systems households spend less. In New York City, for instance, residents could expect to spend the equivalent of about 3 and a half fewer weeks of income to get around.
“Here in the Chicago region, average annual transportation costs can range from $7,034 for a household in Chicago’s Roscoe Village Neighborhood, to $11,783 in suburban West Dundee, a savings of more than $4,500 per year,” noted Scott Bernstein, President of the Center for Neighborhood Technology.
People may not recognize how much they pay for transportation. The average American household spent more than $8,000 per year on its vehicles in 2008 according to the U.S. Department of Transportation. Americans who live in areas with good access to public transit generally spend less on transportation than those who are fully dependent on cars. Residents in transit-friendly areas tend to attain “Transportation Freedom” earlier in the year, but Chicago still lags behind other major cities. By highlighting these dates, Illinois PIRG, CNT, and Midwest HSR Association seek to raise awareness about how access to public transportation is a crucial for saving Americans money.
For example, while 70 days must pass before the income from a median-income household living in Chicago would cover their annual transportation bill. However, a typical household that would live in car-dependent Sugar Grove could expect to wait 93 days, equivalent to twelve weeks of income before their transportation costs are covered.
“Little Village is among the ten lowest-income community areas in Chicago. Transportation costs hit much harder for struggling families in these neighborhoods. Without our fair share of funding, the transit system cannot meet the transportation needs of our communities,” said Michael Pitula of Little Village Environmental Justice Organization.
Advocacy groups are calling on Mayor Daley to push for better transit. Chicago is famous for its elevated and historic transportation system, but its past due for our city’s transportation to be known for efficiency and cost effectiveness for all Chicagoland residents.
Transportation Freedom Day data comes from the Center for Neighborhood Technology in Chicago, which is a leader in statistically based analysis of transportation and housing. Transportation costs are controlled for differences of income, family size, and number of working individuals in a household. Transportation demand is modeled using the most recent census data, and costs are calculated to include car ownership, maintenance, gas, and transit fares. A detailed description of their transportation cost methodology can be found at: http://htaindex.cnt.org/model_summary.
Transportation Freedom Day logo found at http://www.uspirg.org/transportation/freedom-day
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Friday, March 5th, 2010
"Chicago’s Greenhouse Gas Emissions 2000", copyright CNT, 2010.
When CNT set out to inventory Chicago’s greenhouse gas emissions, our goal was to give the Mayor’s Task Force on Climate Change the information it needed to better understand where Chicago’s emissions come from and to establish a baseline for comparison in future years. In addition to that, we created a portfolio of emissions reductions measures to better understand the scale and scope of actions that needed to be taken to meet the city’s emissions reduction targets.
Beyond the City-commissioned research, our broader goal is to make our climate change analysis transparent and available for cities around the world to take action on reducing their impact on climate change. Soon this research will be available in the Journal of Great Lakes Research and it is our belief that the valuable information in this peer-reviewed, scientific journal can serve as a useful tool for cities to use a model.
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Posted in Chicago Climate Action Plan, Climate, Featured Portfolio News | No Comments »
Wednesday, March 3rd, 2010
CNT lost a cherished colleague and co-conspirator for the Common Good, Jan Metzger, who died after a two year battle with cancer on February 22, 2010. Jan joined CNT in 1995, bringing to CNT her smarts, community activism, and ability to make change from the local to the national levels.
Jan was a committed, feisty, and strong woman who was a dedicated resident of Wicker Park – she was a long-time member of Association House board and recently retired as the President of Special Service Area #33. Under Jan’s leadership, the neighborhood developed a community plan that met the needs of new and old-time residents. Read more »
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