Housing and driving costs outpace incomes
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Despite the national housing recession, housing costs rose in the decade 2000-2010, and transportation costs rose by a third due to rising gas prices. As a result, the combined housing and transportation expenses for households in the largest metro areas rose 44 percent between 2000 and 2010 — about 1.75 times the growth of income over this time period.
The burden falls heaviest on those who make less than the median income. Households that make between 50 and 100 percent of median household income now spend about 59 percent of their income on combined housing and transportation costs, according to Losing Ground: The Struggle of Moderate-Income Households to afford the Rising Costs of Housing and Transportation.
The key to reversing this trend is policies and actions that provide affordable housing, and more housing, in location-efficient areas, the report says.
Many analyses focus only on housing costs, but transportation costs are the key to determining affordability in many places, says the report from the Center for Housing Policy and Center for Neighborhood Technology.
“Housing costs in the Houston region are comparatively affordable as a share of income, ranking eighth out of the 25 regions examined. When transportation costs are included, however, Houston drops into