This report shows how sprawling metro areas with limited transportation choices cost families money. But there are a variety of actions that governments, the financial sector, and businesses can take to help families save on transportation, invest in better housing, and create more affordable, livable communities.

1. Invest in Transportation Choice. Governments should invest in public transit, bicycle facilities, and walkable neighborhoods as strategies that can help families save money. Conversely, governments should stop investing in sprawl-inducing roadway projects in ex-urban areas, as these kinds of projects have been shown to add to household transportation costs.
   
   Federal transportation dollars are available for a wide variety of transportation projects, yet most states continue to use the lion’s share of this funding for roads.¹  Using more of this money, as well as state and local funds, for alternatives will help families get more for their money. Some officials are beginning to recognize this; the new DART rail line in Dallas is attracting walkable development near its stops, and DART’s executive director Roger Snoble believes this could help families financially. "Instead of a family having two or three cars, it might have one car and still be able to do everything."2  Transportation investments should be scored and ranked on a range of factors, including the effect that they have on accessibility, convenience and transportation costs for families.
   
2. Grow Smarter. Developers should build new communities under the principles of smart growth, and include a variety of affordable housing options.
   
   This analysis shows that building under the principles of smart growth can pay dividends to families by allowing them to spend less on getting around. Designing communities to be convenient and walkable, with a variety of shops and services nearby makes sense. But for lower income Americans to reap these benefits, smart growth communities must include affordable housing options.
   
   Cities should revise their zoning codes and street standards to permit Traditional Neighborhood Development and Transit Oriented Development to take place as a matter of right. Examples of these kinds of changes are available from the Congress for the New Urbanism at http://www.cnu.org and from the American Planning Association at http://www.planning.org  through its Growing Smart project.
   
3. Offer Location Efficient Mortgages. Mortgage lenders should take into account transportation expenses in counseling buyers and approving loans.
   
   The Location Efficient Mortgage and other programs that allow buyers to take advantage of the savings offered by living in a "location-efficient" place are now available in very limited locations. Routine consideration of transportation expense in both rental and mortgage applications would help many more families reap the benefits of choosing to live in a convenient neighborhood. The Institute for Location Efficiency is prepared to bring the Location Efficient Mortgage to additional metropolitan areas where viable partnerships have been formed. Visit http://www.locationefficiency.com  for more information.
   
4. Give People a Chance to Save through Driving Less. Insurance companies, auto-rental companies, and local governments should encourage programs that help reduce the high fixed costs of driving. Employers should offer employees a range of commuter benefits, including tax-free subsidized transit passes.
   
   Programs such as car-sharing and pay-as-you-go auto insurance are already in place in limited areas, and are helping reduce the fixed costs of driving that make it so difficult for many households to lower their transportation expenses. Wider availability of these programs would help more Americans take control of their transportation budgets. See Appendix B, "Innovations to Reduce the Fixed Costs of Driving," and "How Employers Can Help Workers Save,".
   
5. Collect Better Information. The Bureau of Labor Statistics (BLS) and the Bureau of Transportation Statistics need to collect more detailed data about the personal costs of transportation. And these organizations should explore the relationship between transportation expenditures and housing costs. In particular, the BLS should expand the metropolitan level Consumer Expenditure Survey to at least the 100 largest metropolitan areas, and the BLS should work with the Bureau of Transportation Statistics to explore the variations in household expenditures on transportation within metropolitan areas by conducting more extensive surveys in a limited set of metropolitan areas.