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Transport options dictate disposable income
A PERSON’S disposable income can rise significantly if they have access to - and make use of - a viable public transport system.
In fact according to new US research, households in America’s so-called "transit rich neighbourhoods" spend just 9% of their income on mobility while those in suburbs that rely almost entirely on private cars find mobility spending takes up a quarter of their income. (Costs for Australian motorists are rising sharply too. See Expensive travel.)
The Brookings Institution has been using the figures to help argue its case that today’s "perfect storm" of energy and environmental sustainability also provides the perfect time to rewrite transport strategies.
In evidence to a Congressional hearing, Brooking’s director, Robert Puentes said soaring petrol prices were underlining the need for new approach. For the first time in years, America’s use of the car had fallen dramatically. In the past year, Americans had cut back car travel by 42.1 billion vehicle miles.
"Americans now consume 31 million fewer gallons of gasoline each day in 2008 than they did in 2005," Mr Puentes said.
As a result, use of public transport was booming. More than 90% of the country’s transit operators were reporting greater patronage and overall, transit trips had risen by 9% between March 2005 and March 2008.
"Unfortunately, we also know that transit agencies are not immune from the increases in fuel costs and at the same time are struggling to cope with this increased demand," Mr Puentes said. "Perversely, one in five transit agencies are considering cuts in service as a result of the increased costs of energy. So at the time when the nation needs functioning, reliable, mass transit we are finding many agencies in severe distress."
In reality the true picture of US public transport services was even worse. Latest surveys had shown that only 55% of the population has access to transit and two-thirds of people in America’s new suburbs had no transit services at all.
"At the convergence of these trends is the realization that a substantial market exists for a new form of walkable, mixed-use urban development around transit stops," Mr Puentes said.
He said there needed to be more "transit-orientated developments" (TODs) where transit stations "weaved into the fabric of the surrounding community" and the transit system became a greater part of "day-to-day life".
"The benefits of TOD could be bolstered by synergies with other policies, notably policies that encourage urban infilling, such as the rejuvenation of brownfields, the development of urban enterprise zones, locating new federal buildings in promising mixed-use, higher-density commercial areas, and the use of alternative mortgage products such as energy efficient and locationally efficient mortgages," he said.
NOTE: Energy Efficient Mortgages are sponsored by the US Government’s Federal Housing Administration to help homebuyers save money on utility bills by enabling them to finance the cost of adding energy efficiency features to a new or existing home as part of the home purchase.Location
Efficient Mortgage or LEMs are available to people in the US who buy a home in a location where they will not need to rely on cars. Those who qualify buy more expensive homes on the understanding that what is saved in mobility costs will be spent paying off the larger mortgage.
