Here is a map that shows where housing costs are affordable under the traditional 30% affordability model (blue = not affordable):
Compared to the Housing + Transit model...
As you can see, the H + T Index does a great job of illustrating that it is more cost-efficient to live in the city. So what are renters and homeowners to do? Should everyone from the suburbs move to the city? That would push rents and housing prices up further and it would be a little crowded. Perhaps the message here is that, in the Twin Cities, we need more thoughtful planning and a comprehensive public transit system.
What do you think about combining housing and transportation costs to measure affordability?
Good find, Kim, and a very interesting topic! Of course, when you consider other "whole cost" factors of choosing where to live, things get complex in a hurry. One question: does this presume everyone is commuting to downtown, or is the model sophisticated enough to accomodate, say, the I-494 business corridor?
ReplyDeleteDan- That is a great question. I agree that there are many cost factors beyond housing and transit that people consider when choosing where to live.
ReplyDeleteThe model looks at transportation costs relative to location. Household transportation costs are calculated as cost of auto ownership, auto use, and transit use. So, I don't think they assume that everyone is driving downtown but they must have some way of calculating average commuting mileage based on location. If you are interested in reading more, here is a link to an early report about the index: http://ow.ly/1rq3I
The site is fantastic, and proves that compact cities are more affordable and sustainable than those spread around the country. Costs of urban services -from water to paved streets, from transportation to mail service- are lower in compact,european-like cities.
ReplyDeleteOn the other hand, this kind of compact developing needs a high level of efficiency and a continuous control from authorities, to avoid high land prices.
Manuel - It's great to see the Housing Sense readership extends beyond the U.S. There is much we can learn from sharing housing information and practices. I appreciate your comments about the trade-off between the affordability and sustainability of compact cities and the pressure this development pattern puts on land prices. For me, the need for efficiency and control is a small problem compared the multitude of issues that arise from low-density development.
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