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Posted By Alejandra Owens On May 13, 2008 @ 4:46 pm In Notebook | No Comments
The word today from Lindsay Thomson:
In “Driven to the Brink: How the Gas Price Spike Popped the Housing Bubble and Devalued the Suburbs,” a new report out from CEOs for Cities, author Joe Cortright writes:
“For decades, the growth of suburban housing was predicated on cheap gas. In effect, the low price of gas made sprawl economical. While predatory and sub-prime lending have been blamed for the housing crisis and have certainly contributed to the problem, another economic factor has been almost entirely overlooked in the timing and the geography of the nation’s housing market implosion. The rise in gas prices from less than $1.10 in early 2002 to more than $3 today has dealt a major blow to consumer purchasing power and weighs most heavily on those metropolitan areas and those suburbs where people have to drive the farthest. Indeed, the decline in housing markets is strongly correlated with auto dependence.”
Ahem, make that nearly $4 a gallon. Poh-ta-to, po-tah-to, right? Unfortunately not … AARP has long promoted livable communities – places with a range of transportation options and accessible housing that can enable people of all ages and abilities to live independently and be engaged in community life. Looks like we can add rising gas prices to our list of reasons why livable communities just make sense.
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