Home prices drop most in areas with long commute

Urban real estate markets featuring short commutes are faring better than those suburban neighborhoods where homeowners must drive a significant distance to work. It seems that the longer the commute, the greater the drop in existing home prices.

MAKING SENSE OF THE STORY FOR CONSUMERS

With gas prices skyrocketing, more buyers are taking driving distance and the time they spent commuting into consideration when they look for a home. Some who bought homes in distant suburbs during the real estate boom because that’s where they could afford to buy underestimated the cost of commuting and are suffering both a decline in their home value and a more expensive daily commute.

Builders are shifting gears and building closer to metro areas, where empty-nesters and younger singles are more likely to buy. This has created a renaissance in many downtown communities. With the percentage of couples with children declining, the trend toward suburban living is expected by some to continue to moderate even after the housing market recovers.

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http://www.npr.org/templates/story/story.php?storyId=89803663

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