A new study suggests that the traditional wisdom that suburbs are more affordable places to live than cities may be wrong. Although housing costs may be lower in suburbs, the difference is often outweighed by drastically increased transportation.
"One of the lures of the outer suburbs is more house -- maybe even one with a big yard -- for less money. But a new study shows that the savings are illusory: The costs of longer commutes are so high that they can outweigh the cheaper mortgage payments."
"A study of Washington and 27 other metropolitan areas by the Center for Housing Policy found that the costs of one-way commutes of as little as 12 to 15 miles cancel any savings on lower-priced outer-suburban homes."
"Barbara J. Lipman, an author of the study, said that people tend to focus on all the zeroes that differentiate the price of a closer-in house from one in the outer suburbs, but they don't realize how much they're spending on commuting costs, such as gas, tires and insurance."
" '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,' she said."
Thanks to Dan Malouff
Read the full story: Around D.C., a Cheaper House May Cost You
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