'Drive 'til You Qualify' Foreclosures on the Rise

Long commute + High Fuel Costs = Home Losses in Exurbs.

You can commute to New York City from the Pocono Mountains of Pennsylvania, according to developers who promoted exurban living back in the early days of the housing bubble. But by 2005, foreclosures in the Poconos region rose above 500; by 2009 the number of foreclosures had quadrupled to 2000. Analysts say one cause is the cost of the extreme commute.

Scott Bernstein with The Center for Neighborhood Technology noted the pattern in the Chicago area and mapped it: the farther out from the city center, the higher the foreclosure rate. Scott told WNYC reporter Andrea Bernstein 2008 was the tipping point, as gas hit $4.30 a gallon: "The cost of housing was apparently low enough to attract people, but the cost of transportation is so high that you couldn't afford to live there anymore."

HUD knows its an issue, and is trying to promote new housing in locations with shorter commutes.

Full Story: Gas prices drive up foreclosures

Comments

Prepare for the AICP Exam

Join the thousands of students who have utilized the Planetizen AICP* Exam Preparation Class to prepare for the American Planning Association's AICP* exam.
Starting at $199
Planetizen Courses image ad

Planetizen Courses

Advance your career with subscription-based online courses tailored to the urban planning professional.
Starting at $14.95 a month

Stay thirsty, urbanists

These sturdy water bottles are eco-friendly and perfect for urbanists on the go.
$19.00
Wood necklace with city map

City Necklaces

These sweet pendants are engraved on a cedar charm with a mini map of selected cities. The perfect gift for friends and family or yourself!
$28.00