Reasons People Are Choosing Homes That Are Close-In

January 29, 2007

More working families are finding that purchasing a home in outer suburbs, far from their point of employment, is financially counter-productive. The reason for selecting a home in that location is usually to benefit from lower housing costs. But in many cases the added cost of transportation to commute to work each day is more than the money saved in a lower home price and mortgage, according to a study conducted by the Center for Housing Policy, the research affiliate of the National Housing Conference.

The study found that the combined burden of transportation and housing costs for working families was similar in all 28 of the major metropolitan areas studied. The study focused primarily on low- to moderate-income families.

"Working families are increasingly moving further from their jobs to find affordable housing," said Jeffrey Lubell, executive director of the Center for Housing Policy. "Yet, we found that many of these families end up spending more on transportation costs than they save on housing. Ultimately, these findings emphasize the importance of coordinating the development of housing and transportation policy as well as expanding the supply of affordable housing close to both central city and suburban job centers. Also, improving public transit in areas with lower housing costs and reducing the costs of commuting by car for working families is important."

source: jim woodard columnist

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