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Home » Archives » October 2006 » Study Shows How Transit, More Transportation Choices Reduce Cost Burdens on Families and Regions

10/23/2006: "Study Shows How Transit, More Transportation Choices Reduce Cost Burdens on Families and Regions"
The Surface Transportation Policy Project (STPP) and the Center for Neighborhood Technology (CNT) released a study, Driven to Spend: Pumping Dollars out of Our Households and Communities, which shows that families are paying a high price to meet their transportation needs and families in areas with fewer transportation choices carry even greater burdens.

Driven to Spend updates prior transportation cost studies published by STPP and CNT, but for the first time provides information on the effect of gas prices on family budgets. The study ranks 28 metropolitan areas on their combined transportation and housing costs and recommends specific actions that governments – federal, state and local – can take to reduce the burden of transportation costs for families by investing in more transportation options.

Key findings of Driven to Spend include:

Households in regions that have invested in public transportation reap
financial benefits from having affordable transportation options, even as
gasoline prices rise.

Low-income families are unduly impacted by higher transportation costs
since transportation expenditures claim a higher percentage of their family
budgets.

For the first time, the study analyzed the effects of gasoline price hikes
and ranked areas by the jump in household expenditures due gas prices.
From 2003-2004, Los Angeles area families paid $316 more per
household for gasoline, with families in the Kansas City metro area paying
$312 more for the second highest increase. The New York metro area
posted the smallest increase at $220 per household.

Families in the Houston (TX) metropolitan area have the highest overall
transportation expenditures at 20.9 percent, followed by the Cleveland (OH) and
Detroit (MI) metro areas at 20.5 percent, Tampa (FL) at 20.4 percent, and
Kansas City (MO) at 20.2 percent. The national average was 19.1 percent,
making 2003 the second highest year for transportation costs as a share of
family budget in the last twenty years. Transportation expenditures in 2002 set a
record for the period at 19.2 percent.

The five areas where families expended the smallest share of their household
budgets for transportation services were the Baltimore (MD) metro area at 14
percent, Portland (OR) at 15.1 percent, New York (NY) and Washington, DC
areas at 15.4 percent and Philadelphia (PA) at 15.9 percent.

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