Transit access reshapes housing affordability math
Car ownership costs now rival mortgage payments in determining true housing affordability, with transit-accessible homes commanding a price premium nationally, according to new data.
Transit access is becoming a bigger part of the affordability equation as car ownership costs continue to climb.
Housing and transportation made up half of household spending in 2024, with housing accounting for 33% and transportation another 17%, according to the U.S. Bureau of Labor Statistics. That is changing the math behind the old advice to "drive until you qualify," especially in places where a lower rent or sale price comes with the added cost of owning and operating a car.
AAA estimates car ownership at roughly $1,025 per month, enough to erase the savings of a cheaper home farther from reliable transit. The Urban Institute reports that only 10% of housing nationwide sits within a half-mile of frequent bus or rail service running at least every 15 minutes during the day. Just 6% of housing is within a half-mile of an urban rail station.
Easy access to transit makes it easier to live with fewer cars, fewer trips or no car at all, lowering the daily cost of life more than what a 2% mortgage rate could offer. Transit access can shape total affordability almost as much as the mortgage payment itself. Real estate agent Thomas Ummels said, "The mortgage is just one number, but the hidden second mortgage is the transportation cost nobody talks about."
Single-family homes near transit can rent or sell for a price that is 2.3% higher nationally than those further away from transit options.
Source: Realtor.com (06/10/26) Conte, Allaire
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