A fundamental belief at Tri-State is that land use planning and transportation planning are intrinsically linked, and that the failure to consider them in tandem has resulted in many of our current mobility problems. The current housing foreclosure crisis, and its reverberating impacts, may be another unexpected consequence of this failure.
While sub-prime loans have taken the brunt of the blame for the housing crisis, some analysts are examining the role that skyrocketing gas prices have played in decreasing home values, particularly in automobile-dependent suburbs and exurbs.
A recently released report by CEOs for Cities, a national network of elected officials, civic groups, corporate executives, and others, makes this argument. Driven to the Brink: How the Gas Price Spike Popped the Housing Bubble and Devalued the Suburbs, analyzes the housing bubble collapse and links it to a rise in energy costs and sprawling development that places homes further and further away from downtowns.
The report finds that “the higher price of gas has most affected suburban housing values… distant suburbs have seen the largest declines, while values in ‘close-in’ neighborhoods have held up better, and in some cases continued to increase.” (In the table below, “distant” neighborhoods are 13 miles from the central business district, while “close-in” neighborhoods are 3 miles away.) This is hardly surprising, considering that sprawling development patterns lack the density to efficiently support mass transit and are often hostile environments for pedestrians and cyclists. For many residents of these areas, the only viable option is the automobile, even as it becomes more expensive to drive.

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