Longer Commutes = Steep Drop In Housing Prices
NPR tells us (Home Prices Drop Most in Areas With Long Commutes, April 21, 2008, by Kathleen Schalach) that the real estate market is fairing better in areas with shorter commutes rather than those with the long drives into the city. Real estate experts say the trend is true here in the D.C. area as well as areas across the country. The conclusion. The longer the commute the steeper the drop in home values. Says one expert:
"Home buyers' attitudes have changed. The old rule was, "Drive 'til you qualify" - meaning they should go out from the city until they could get what they wanted at a price they could afford. Buyers are now asking different questions: "What is the cost of gasoline? What is the cost of my time?"
As a result, the experts say the market is responding. Over the last two years new construction on forest and farmland has dropped 70 percent while construction in town has held steady. Pushed by changing demographics, the trend is expected to continue. Says another expert:
"We don't live in the Ozzie and Harriet era anymore," Goldberg said. "We live more in the Seinfeld, Sex in the City era, in which young people find cities to be compelling."
Seems like demographics, congestion and energy prices are all having an effect on the housing market. I'm certainlly glad I live in town.
Chris Hamilton is the Commuter Services Chief for Arlington County, manager of CommuterPageBlog and The TDM Professional blog and is a biking/Metrorail commuter from Alexandria, Virginia just outside of Washington, D.C.
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