Shorter Commutes Give Buyers More Purchasing Power

A recent study by the Brookings Institution and the Center for Trans-oriented Development concluded that for every $10,000 saved in annual transportation costs, a household can afford to spend about $100,000 more on a home.

Housing represents about 20% of the average household budget, while transportation is roughly 19.4%.  In cities where urban sprawl means many people have long commutes, buyers may shrug off commuting 30 minutes and could drive upwards of one hour.

Recent surveys have shown though that employees ranked a desirable commute as one of their top three factors for job satisfaction.

As people continue to feel harried, stressed out, and unable to do all the things they’re supposed to be doing, buyers are beginning to place a desire for more time above other concerns.