Housing & Transportation Spending: Are They Related?
We all know that more and more people are driving longer and longer distances to get to work. But there's some surprising information I came across when, in catching up with some of my back reading, I read through A Heavy Load, a report prepared by the Center for Housing Policy, the research affiliate of the National Housing Conference.
A Heavy Load (available to download), examines "the combined housing and transportation cost burdens of working families in 28 metropolitan areas at the neighborhood level."
The bottom line, according to the report, is that working families "spend about 57 percent of their incomes on the combined costs of housing and transportation, with roughly 28 percent of income going for housing and 29 percent going for transportation." What's more, "while the share of income devoted to housing or transportation varies from area to area, the combined costs of the two expenses are
surprisingly constant."
Some of the data is downright scary. Looking at the average household budget in these metro areas, 27.4% is spent on housing and 20.2% on transportation (incidentally, those figures dwarf the 10.6% needed for food and the 4.7% spent on healthcare). But when looking at what the study defines as "working families" (with household incomes between $20,000 and $50,000) the portion of the typical household budget spent on transportation skyrockets to 29.6% (the share for housing is 27.7%).
Think about that for a minute. It's remarkable that approximately 30% of a "working family's" household's budget is going into transportation-related expenses -- and that the share substantially exceeds that spent on housing.
What's even more frightening is that since the study (which relied on 2000-2004 Census and Bureau of Labor Statistics data), gas prices have sharply increased.
Continue reading "Housing & Transportation Spending: Are They Related?" »






From Wayne Senville, Editor, Planning Commissioners Journal:





