Report Predicts 'Mass Exodus of Vehicles off America's Highways'

A new report for a Canadian bank examining the economic impact of rising oil prices predicts that millions of Americans will be forced to give up driving as gas reaches $7.00 a gallon.

2 minute read

July 3, 2008, 8:00 AM PDT

By Michael Dudley


"As gasoline prices climb inexorably, American driving habits are going to have to undergo a massive change, mimicking the driving habits long adopted by Europeans who have faced much higher gas prices. Average miles driven will likely fall by as much as 15%, while the market share of light trucks, SUVs and vans will be literally halved, reversing the trend of the last fifteen years. But the most fundamental, and unprecedented change will be in the number of vehicles on the road.

Over the next four years, we are likely to witness the greatest mass exodus of vehicles off America's highways in history. By 2012,there should be some 10 million fewer vehicles on American roadways than there are today-a decline that dwarfs all previous adjustments including those during the two OPEC oil shocks (see pages 4-8). Many of those in the exit lane will be low income Americans from households earning less than $25,000 per year. Incredibly, over 10 million of those American households own more than one car.

Soon they won't own any.

More fundamentally, the freeways are about to get less congested. Not only will the number of vehicle registrations in the United States not grow over the next four years, but by 2012 there should be roughly 10 million fewer vehicles on the road in America than there are today. For the past half century, America has spent the bulk of its infrastructure money on building highways-only to see that soon, $7 per gallon gasoline prices will lead to fewer and fewer people using them."

Thursday, June 26, 2008 in CIBC World Markets

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Historic homes in St. Augustine, Florida.

Florida Considers Legalizing ADUs

Current state law allows — but doesn’t require — cities to permit accessory dwelling units in single-family residential neighborhoods.

March 18, 2025 - Newsweek

Bird's eye view of manufactured home park.

Manufactured Crisis: Losing the Nation’s Largest Source of Unsubsidized Affordable Housing

Manufactured housing communities have long been an affordable housing option for millions of people living in the U.S., but that affordability is disappearing rapidly. How did we get here?

March 25, 2025 - Shelterforce

Aerial view of suburban housing near Las Vegas, Nevada.

HUD Announces Plan to Build Housing on Public Lands

The agency will identify federally owned parcels appropriate for housing development and streamline the regulatory process to lease or transfer land to housing authorities and nonprofit developers.

March 17, 2025 - The Wall Street Journal

Brick buildings on small town street with red awnings on first floor businesses.

Research: Walkability Linked to Improved Public Health

A study reveals that the density of city blocks is a significant factor in communities’ walkability and, subsequently, improved public health outcomes for residents.

March 26 - Great Lakes Echo

Aerial view of neighborhood under construction with houses and vacant lots.

Report Outlines Strategies for Resilient Wildfire Recovery in LA

Project Recovery offers a roadmap for rebuilding more sustainable and climate-resilient communities after wildfires and other disasters.

March 26 - Urban Land Institute

Red rock landscape in Bears Ears National Monument, Utah.

New Executive Order Renews Attack on Public Lands

An order issued late last week pushes for increased mineral extraction on federally owned public lands.

March 26 - Rocky Mountain Community Radio