FOR IMMEDIATE RELEASE - November 30, 2000

Charles Longer, Fenton Communications, 202/822-5200
Tom Lalley, EMS, 202/463-6670
Barbara McCann, STPP, 202/466-2636

Washington – A new report finds that sprawl drives up transportation costs for American families. The average American family living in a highly sprawling area can pay thousands of dollars more per year for transportation than families in more convenient locations, according to Driven to Spend, a report released today by the Surface Transportation Policy Project and the Center for Neighborhood Technology. It analyzes government data on consumer expenditures, ranking 28 major metro areas by the portion of the family budget devoted to daily transportation costs. The full report is posted on www.transact.org.

The report finds that the metro areas where transportation takes the biggest bite out of the household budget are Houston, Atlanta, Dallas, Miami and Detroit, followed by Minneapolis, Phoenix, Philadelphia, Kansas City and Tampa. Much of the difference in transportation expenditures is due to sprawling development patterns, as shown by analysis of land use and transportation factors detailed in the report.

"Transportation has gotten expensive for many American families," said Roy Kienitz, executive director of the Surface Transportation Policy Project. "Because of sprawl, driving has changed from a convenient choice into an expensive necessity."

In 1997 and 1998, Houston-area households used more than 22 cents out of every dollar they spent for transportation, spending $8,840 each year to get around, $2,528 more than the national average. The average American household devotes 18 cents out of every dollar to transportation, more than is spent on health care, education or food. Households in Honolulu spent the least on transportation, just 15 percent of their budgets.

"Sprawl means little choice about a lot of driving, and cars are by far the most expensive form of transportation," said Scott Bernstein, president of the Center for Neighborhood Technology. "We found that counting on cars to get around hurts family finances by using up money that could go toward buying a home."

Transportation costs are rising, according to the report. Between 1990 and 1998, the portion of household budgets going to transportation in the metro areas in the report grew by an average of 8 percent. In several metro areas, transportation has become the single most expensive item in the family budget, surpassing shelter.

The report also finds that heavy government investment in road infrastructure may be contributing to an increase in household transportation costs. Transportation expenses and road building grew far faster than average in the top ranked areas -- Houston, Atlanta and Dallas. Areas that have balanced road investments with transit and other choices cost families less, on average.

The impact of sprawl on transportation costs holds true within metro areas as well. Annual automobile costs for average households are often thousands of dollars higher in sprawling neighborhoods with poor transportation choices. The study finds that sprawl increases distances and reduces travel choices, requiring car ownership and driving up transportation costs. In more convenient neighborhoods, automobile costs for the average family are $100 to $500 a month lower than in sprawling areas.

"There is a big difference for American households between buying a car and watching savings go down, and buying a house and watching wealth go up," said Bernstein. "Every $10,000 invested in a home can reap $4,370 in equity over 10 years, while every $10,000 spent on automobiles will yield just $910."

The study recommends that governments invest in public transportation, walkable neighborhoods and bicycle facilities, stop investing in sprawl-inducing roadway projects in exurban areas, and that mortgage lenders take into account transportation expenses when counseling buyers and approving loans.

"Biking, walking, and public transit are all cheaper than owning two or three cars per family, but they are not viable options for many Americans," said Kienitz. "The continuing resistance to spending public funds to support transit, bicycle facilities and smarter growth is costing America's families a lot of money."

Driven to Spend uses data from the Consumer Expenditure Survey, produced annually by the Bureau of Labor Statistics, to rank metro areas according to the portion of household expenditures devoted to transportation. Intra-metropolitan area data is from the Location Efficiency Value formula.

The Surface Transportation Policy Project is a nationwide network of more than 250 organizations, including planners, community development organizations and advocacy groups, devoted to improving the nation’s transportation system. The Center for Neighborhood Technology is a Chicago-based group inventing new tools for creating livable communities.

Charles Longer, Fenton Communications, 202/822-5200

Tom Lalley, Environmental Media Services, 202/463-6670

Barbara McCann, Surface Transportation Policy Project, 202/466-2636