Transportation affordability key to housing market resilience

A new study looked at more than 300 metropolitan areas across the U.S. to understand which ones saw foreclosure rates drop the fastest during the economic recovery period between 2011 and 2014. The authors call this “housing market resilience.” It found that some of the most resilient areas were central cities with lower household transportation costs.

Moving Off the Road: State-by-State Analysis of the National Decline in Driving (USPIRG, 2013)

The decline in both per capita and total VMT has been noted in many contexts, but some have doubted that the decline will last once the economy recovers. This study finds that declining rates of driving do not correspond with how badly states suffered economically in recent years. The evidence suggests that the nation’s per-capita decline in driving cannot be dismissed as a temporary side effect of the recession.

The Correlates of Housing Price Changes with Geography, Density, Design and Use: Evidence from Philadelphia (Congress for the New Urbanism, 2012)

University of Pennsylvania economist Kevin Gillen analyzes the stability of Philadelphia-area home prices from 2007-2012 as they correlate to walkable, urban neighborhoods versus exurban, auto-centered locales. In a reversal of trends from past recessions, the walkable, urban neighborhoods have weathered the recent housing crisis better than more car-centered counterparts.

The Correlates of Housing Price Changes with Geography, Density, Design and Use: Evidence from Philadelphia (Congress for the New Urbanism, 2012)

University of Pennsylvania economist Kevin Gillen analyzes the stability of Philadelphia-area home prices from 2007-2012 as they correlate to walkable, urban neighborhoods versus exurban, auto-centered locales. In a reversal of trends from past recessions, the walkable, urban neighborhoods have weathered the recent housing crisis better than more car-centered counterparts.