Humanize the Earth!

New Housing Affordability Standards?

The federal guidelines for “affordable housing” say that for housing to be “affordable” it should cost no more than 30% of your income. One problem with this standard is that it does not take into account another huge portion of many people’s expenses: transportation. Many people are spending hundreds of dollars per month commuting, while others live in transit-friendly locations where commuting costs end up much lower.

The Center for Neighborhood Technology has been working on a more accurate, wholistic measure of affordablily.  On their blog, they write about How High Gas Prices Drive Up the Cost of Housing:

“The old maxim, ‘Drive till we can afford it,’ may be softening,” said Michael Noonan, division president for one of the top national home builders operating in the Twin Cities area and a vice president of the Builders Association of the Twin Cities. “The rising cost of gas is adding a dimension that people didn’t used to consider as carefully as they do today.”Some organizations are working to encourage consumers’ awareness about commuting costs before they buy. In fact, the Twin Cities area may become ground zero in a national movement to help homeowners understand the true cost of home ownership.