Transport Affordability vs. Housing Affordability: An Indicator to Highlight the Economic Efficiency of Sustainable Modes of Transport

Background: The rising costs in the metropolitan real estate market are compelling individuals to relocate outside of the city. The anticipated financial savings, however, may be undermined by long and costly commutes; raising the question of whether this trade-off is a worthwhile proposition. This paper uses a digital model of workplace commutes, income levels and house prices in England as well as Wales, to evaluate the trade-off between (i) moving to the city centre and cycling to work versus (ii) continuing to commute by car from a residence on the periphery. Methods: An indicator has been introduced that unifies the transport and housing affordability by expanding the concept of the ‘effective speed’ to include housing costs. The effective speed itself is commonly defined as the travel distance divided by the time dedicated to the transport activity (i.e., travel duration and time given to earn the money to pay for the costs incurred). Results: If only the associated fuel and mortgage costs are considered, residing on the periphery can—for those already living there—be a cost-effective option specially in cities like Cambridge and Oxford. Yet, accounting for the total ownership costs of cars or external effects, this advantage shifts in favour of relocating to the city centre. Conclusion: This study does not negate the existence of an affordable housing crisis in urban environments, though it demonstrates that strategies to cut transport emissions can produce economic gains.