Mounting Transportation and Housing Costs Devour Household Budgets

In the Phoenix region, the yellow areas meet CNT's threshold for affordability, while the blue areas do not. Image: CNT
On Monday we wrote that Americans can’t afford a transportation bill that locks households into the expenses of car dependence. Yesterday the Center for Neighborhood Technology hammered the point home, releasing new data showing how communities are getting less and less affordable nationwide.
Only 28 percent of American communities meet CNT’s definition of “affordable,” which accounts for both housing and transportation costs. Today American families are paying more for housing and transportation than they did in 2000, according to CNT’s analysis:
Median housing costs, as reported by the US Census, have increased by nearly 37 percent nationwide, while the national median income has increased by approximately 22 percent. Average transportation costs in the geographies covered by both Indexes increased by more than 39 percent or $318 per month.
CNT attributes the growing burden of these basic costs to development in “location inefficient” places, where households have no choice but to shell out for an expensive mode of transport — driving. The findings come amid a Republican-led effort to pass a highway-centric, sprawl-favoring transportation bill, and a presidential campaign season where candidates are tripping over themselves to pander about gas prices without stating the obvious: reducing car dependence saves money.
CNT, a Chicago-based urban research think-tank, has long held that “affordability” shouldn’t be based on housing costs alone, but must incorporate transportation costs as well. Rather than following the conventional practice of dubbing housing affordable if it accounts for less than 30 percent of household income, CNT adds in transportation costs and sets the combined threshold at 45 percent, which changes the picture dramatically.
The result busts the “drive-till-you-qualify” myth that has driven suburban sprawl for decades, because the money saved on housing is often wiped out — and then some — by the costs of a longer commute, especially when that commute is dependent upon — and therefore sensitive to — the price of gasoline.





On Friday, Times columnist David Brooks 

