People tend to separate housing from transportation when they budget. From a savings standpoint, they are one decision about where you live and how you get around.
The cost of place is the combined monthly cost to keep a roof over your head and to reach work, school, groceries, friends, and care. Tools like the H+T Index were created to make that combined cost visible.
A lower rent or mortgage on the edge of town can raise the cost of place. Longer trips mean more fuel, more maintenance, higher insurance, more parking, and often one more car. A higher rent in a location efficient neighborhood can lower the cost of place if it lets you own fewer cars and make shorter trips.
A simple example is one household that pays $2,200 for rent and $150 for transit or occasional rides, compared with another that pays &1,700 for housing but $900 to $1,200 for two cars. The second household looks cheaper on paper until you add transportation.
What it means for households
Shop for the combined monthly number, not just the rent or mortgage. List expected car ownership and use, parking, insurance, fuel, maintenance, and any transit or rideshare spending.
Compare neighborhoods on that total. Test scenarios that trade one car for a monthly transit pass, carshare, or e bike.
Consider the value of time. Shorter trips and fewer car errands can free hours each week and lower stress.
When viewing homes, look for daily needs within a short walk or a single transit ride and ask about unbundled parking so you do not pay for spaces you do not use.
What it means for cities and policymakers
Cities can drive up the cost of place when land use rules push homes far from jobs and daily needs and when streets and parking policy make car travel the only viable option.
Minimum lot sizes, bans on apartments and missing middle housing, strict height caps, setbacks that force low density, and lengthy approval processes suppress homes in town where transportation costs are lower.
Parking minimums raise building costs and spread destinations apart.
Single-use zoning separates homes from shops and schools which lengthens trips and locks in car dependency.
Inadequate transit that fails to provide a realistically useful way to get around.
Street designs that prioritize fast through traffic over safe walking, biking, and transit add to those costs.
To lower the cost of place, allow more homes near jobs, schools, parks, and frequent transit.
Legalize duplexes, triplexes, courtyard apartments, and accessory dwelling units. M
Upzone near transit and main streets and permit mixed use buildings so errands are close. Replace parking minimums with context sensitive maximums, unbundle parking from rent, and price curb parking so spaces turn over.
Invest in reliable buses and trains, dedicated bus lanes, safe bike networks, and safer crossings so fewer households need multiple cars. Encourage transit oriented development on public and private land. Speed approvals for projects that add homes in location efficient areas.
Align school and public facility siting with walkable and transit served locations.
Use inclusionary tools and land value capture carefully so they add homes where access is best without stalling production.
Consider demand management like employer transit benefits and cash out for parking.
These actions reduce both the need to drive and the number of vehicles per household which lowers monthly costs.
Bottom line
The cheapest address is not always the most affordable once you add the cost to get around. Treat housing and transportation as one decision and aim for a lower cost of place.
References
Center for Neighborhood Technology (n.d.). H+T Affordability Index. Center for Neighborhood Technology. https://htaindex.cnt.org/
U.S. Department of Housing and Urban Development and U.S. Department of Transportation (n.d.). Location Affordability Index. HUD and DOT. https://www.locationaffordability.info/
AAA (2024). Your Driving Costs. AAA. https://newsroom.aaa.com/auto/your-driving-costs/
U.S. Bureau of Labor Statistics (2024). Consumer Expenditures. U.S. Bureau of Labor Statistics. https://www.bls.gov/cex/
Ewing, R., and Cervero, R. (2010). Travel and the Built Environment. Journal of the American Planning Association. https://doi.org/10.1080/01944361003766766
Litman, T. (2024). Transportation Affordability. Victoria Transport Policy Institute. https://www.vtpi.org/affordability.pdf
U.S. Environmental Protection Agency (2013). Location Efficiency and Housing Choice. U.S. Environmental Protection Agency. https://www.epa.gov/smartgrowth/location-efficiency-and-housing-choice
Harvard Joint Center for Housing Studies (2024). The State of the Nation’s Housing 2024. Harvard Joint Center for Housing Studies. https://www.jchs.harvard.edu/research-areas/reports/state-nations-housing-2024
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