New tool reveals combined costs of housing and transportation in regions across the country (Smart Growth America)

Smart Growth America
(12/6/2013 3:07 PM, Craig Chester)

How much does housing and transportation cost your family each month? These two items are typically a family’s largest expenses. Together they take up almost half of the average household’s budget, according to the U.S. Department of Housing and Urban Development (HUD). How does your family’s housing and transportation costs compare to the rest of the region? And how would living in a different neighborhood or commuting in different ways affect your monthly budget? A new tool is designed to help you find out.

On November 13, HUD and the U.S. Department of Transportation (DOT) launched the Location Affordability Portal, a database of average housing and transportation costs in neighborhoods across the country. The tool also includes a calculator that allows users to see how their average costs would change if they changed commuting habits or moved to a different area.

The tool marks an important collaboration between HUD and DOT and underscores the connection between housing and transportation when families decide where to live. Housing costs like mortgage payments and rent are often simple to calculate, but transportation costs are less so. Variables like changes in gas prices and public transportation fares or more intangible factors like access to transit and street connectivity can be difficult for families to monetize. A miscalculation of these costs over time can leave families financially unprepared for unforeseen events or from adequately saving for retirement or other expenses. The new tool provides tools that combine the cost estimates to give families a clearer picture of how these costs impact their household budget.