One of the excuses planners have made for their support of densification is that, yes, housing costs are higher in dense areas, but this is more than offset by lower transportation costs. They call this the H+T Affordability Index, but — as the Antiplanner pointed out nearly five years ago — this claim was based solely on hypothetical and, in some cases, obviously inaccurate numbers.
Despite the lack of any real evidence, density advocates managed to persuade lending authorities to loosen mortgage loan criteria for people locating in dense, transit-rich areas. Since people living in such areas supposedly saved a bundle on transportation, they could afford to spend more on a mortgage.
Now a new study has come out that collected ten years of real data from 11,000 families who moved to compact, transit-rich areas. The study found that some people saved money on transportation, but others spent more, and the net overall effect was a wash. “We conclude that the location affordability literature may significantly overstate the promise of cost savings in transit-rich neighborhoods,” say the researchers. Continue reading
