High Commuting Costs Cancel Suburban House Savings

The Center for Housing Policy found that the costs of one-way commutes of 12 to 15 miles cancels any savings on lower-priced outer-suburban homes. Barbara J. Lipman, an author of the study, explains that people compare the price of a closer-in house from one in the outer suburbs, but they foreget how much they will spend on commuting costs, such as gas, tires and insurance. She says, "Even if you save a couple of hundred dollars a month on your mortgage, it doesn't nearly outweigh the costs of the cars you are driving." According to the American Automobile Association, the average cost of owning a 2006 Toyota Camry and driving it 15,000 miles a year with gas at $2.40 a gallon works out to $7,967 a year. People living in outer suburbs pay so much for transportation not just because of long commutes, but also because they have to use their cars for nearly every errand and trip.