DelphiFAQ Home Search:

How does the rising gas price affect the housing market?


commentsThis article has not been rated yet. After reading, feel free to leave comments and rate it.


What effect does the rising gas price have on the housing market?


It is quite possible that people start to move closer to their work place. In the past people chose to live in suburbs because housing was cheaper there and the cost of the commute was small.
As the gas prices go up, residential areas close to workplaces will be more attractive.

I personally do a 100 miles roundtrip commute. If I would do this 5 times a week (I don't) with a car achieving 22 mpg (my car gets 45 mpg), then I would use 500 miles / 22 mpg = 23 Gallons per week or 100 Gallons a month.

Let's say I'm married, and my partner drives a similar distance but we cannot carpool, that makes 200 Gallons a month.

With the gas price going up from $2.00 to $3.00 to $4.00 that means monthly expenses going from $400 to $800 a month.

Those extra $400 a month can buy a bigger mortgage. Living closer to work also means less time lost on the freeway, less money spent on car insurance, less wear-and-tear on the vehicles etc.

Currently, $400 a month will get you something like an extra $100k of a loan. That is in some areas even more than the difference of living.

Personally, I think telecommuting is the way to go.

Content-type: text/html


2012-09-20, 21:49:17
anonymous from China  



NEW: Optional: Register   Login
Email address (not necessary):

Rate as
Hide my email when showing my comment.
Please notify me once a day about new comments on this topic.
Please provide a valid email address if you select this option, or post under a registered account.

Show city and country
Show country only
Hide my location
You can mark text as 'quoted' by putting [quote] .. [/quote] around it.
Please type in the code:

Please do not post inappropriate pictures. Inappropriate pictures include pictures of minors and nudity.
The owner of this web site reserves the right to delete such material.

photo Add a picture: