Why buying that cheap house in an exurb is a bad idea

February 11, 7:14 AMBicycle Transportation ExaminerAdam Voiland

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"Drive till you qualify" is a common refrain in the DC metro area. Indeed, many people who work here head to the hinterlands in search of affordable housing. Quite a few go as far as Warren and Fauquier counties in the west; Spotsylvania and Charles County in the south;  Frederick county in the north; and Calvert County in the east.

Some friendly advice: Don't.

Well, do if you'd like, but make sure to calculate the cost of your commute before you sign the dotted line. It's a common oversight that for many makes intended savings from a cheap mortgage evaporate. In many outer-ring suburbs, in fact, people have higher combined transportation and housing costs than those in inner-ring suburbs who may be ponying up more for rent. 

The authors of a new report from the Urban Land Institute call the problem the "Beltway Burden", a value you can arrive at quantitatively by dividing the median income in an area by the sum of the housing and transportation costs. Using this formula the most affordable areas fall in the inner suburbs. Arlington and Alexandria, for example, have combined housing and transportation costs that are 41 percent of the annual median income. The outer suburbs, in contrast, can easily become financial black holes. People who live in Clarke and Warren counties end up paying a hefty 58 percent of the annual median income on housing and transportation.

To make matters worse, there's DC's treacherous traffic for those brave souls who do sign on to become super commuters. DC ranks as second worst in the nation for traffic; we spend an average of 60 hours per year stuck in traffic.  With numbers like that, it's hardly a surprise that stress, obesity, and depression have become as much a part of daily life for many as the daily commute.  

It's also no coincidence that the same suburban counties with high combined housing and transportation are the same counties with surging foreclosure rates. And it's no wonder that President Obama, in a speech in Fort Myers, Florida had this to say:

"The days where we're just building sprawl forever, those days are over.  I think that Republicans, Democrats, everybody... recognizes that's not a smart way to design communities."

If you plan correctly, a commute doesn't have to siphon off your disposable income. When I used to bike to work in Georgetown, I saved more than a thousand dollars a year on transport costs. These days my employer--the federal government--offers a monthly subsidy for taking public transportation.  So, when all's said and done, I actually make a profit on my commute. According to the report, the average person in the DC area spends $13,000 per year on transportation. I can't imagine that I spend more than a few thousand.  

The bottom line: live as close as possible to your workplace and near public transport if you want to save money. And, if you can, ditch the car.  The report concludes: "In the Washington, DC, metropolitan area, transportation costs begin to exceed housing savings when families live more than 15 to 17 miles from employment centers."

Interestingly, that's at just near the upper limits of the distance most people can bike comfortably. For more details on the DC areas with the cheapest, most expensive, and most bike-friendly commutes see the series of articles below.