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Population Density and Households’ Transportation and Housing Cost Trade-Offs

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https://ir.library.oregonstate.edu/concern/graduate_projects/5425kc44m

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  • As metropolitan governments explore density-promoting “smart growth” policies, finer analysis is needed to quantify the impact of such changes on households’ transportation and housing costs. Existing research suggests that households in urban areas face a trade-off between living in areas with higher housing costs and lower transportation costs or the reverse, but does not explore how density changes explicitly impact this balance. This paper uses the 2000 Census Public Use Micro Sample (PUMS) data from twenty-three of the nation’s most densely populated states to identify the impact of increased population density on household rents, housing unit values and monthly mortgage payments. The project additionally explores the possibility of a negative relationship, or trade-off, between what households spend on housing and the transportation options they face. Results suggest increased population density is a strong driver of higher housing costs even after controlling for available transportation variables. Results also confirm previous research that suggests households utilizing fixed route transit systems pay a premium for that access.
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