Miami, Houston Residents Spend Most on Transportation

Residents of Greater Miami spend roughly 20 percent of their income on transportation, tying with Houston for the highest rate in the country. According to an article in the Miami Herald by Max Klaver, that equals around $14,400 per household.

“Americans in general are spending more on cars now than almost ever before. According to Kelley Blue Book, new car buyers paid almost $50,000 per purchase at the end of 2024, just under 2022 highs, when supply chain disruptions led to shortages of new vehicles on the market.” In places like Miami and Houston where public transit is sparse, owning a car can be a non-negotiable. 

In South Florida, over half of workers commute 10 miles or more to work, and almost 15 percent have a commute of 50 miles or more. “Gas eats up roughly 4% of Greater Miamians’ annual household spending, one of the highest shares among major U.S. metro areas, according to the Census Bureau.” Floridians also pay more than average for car insurance due to the high risk of severe weather and high rate of uninsured drivers.

In the long term, local governments can invest in transit and dense housing, as well as “bike lanes, sidewalks and improved pedestrian street crossings to make non-car transit, which is the cheapest way to get around, more attractive, especially for short trips.” In the meantime, employers can offer gas and transit subsidies to help employees offset travel costs.