The Housing and Transportation Affordability Index (HTA index) developed by the Center for Transit Oriented Development Index is "an innovative too that measures the affordability of Housing".
Unlike the traditional and simplified measurement which takes a mortgage as a percentage of income, the HTA Index "takes into account not just the cost of housing but the intrinsic value of place as quantified through transportation cost".
Transportation cost is defined as auto ownership, commute, number of cars per household, availability of mass transit and other data. and use. For a more (detailed description of the methodology used to develop the HTA Index ).
Before you buy your next home here in Maricopa County (Phoenix, Scottsdale, Tempe , etc) , I recommend you take a look at the HTA Index website which offers information on 52 metropolitan areas and the sub-communities and neighborhoods with detailed information on travel, public transportation and average amount of family's spending on transportation.
When it comes to buying a home in Arizona, take the time factor in commuting and/or transit costs, don't forget taking kids to schools, related activities, food shopping and other errands.
Do your best to measure and factor in the costs.
Clearly, transportation, not just to work, but errands, and other family related activities are a large portion of a families income. With skyrocketing gas prices, this is becoming an even larger portion of disposable income and must be factored into a buyer's decision on whether or not one can afford the monthly loan payment comfortably.
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Copyright © 2008 By James Wexler, All Rights Reserved. *HTA Index - tells us "can you afford that house"*
Contact James Wexler (480) 221-8080 for all your Phoenix Scottsdale area Real Estate needs
thanks james, great tool - this is very important for consumers in todays market. Many people used to buy a little further to get more home and then drive.
Now with gas prices, time, and the fact that you can get great deals, living closer to work, schools and city centers may make more sense
There are a lot of factors that you have to take into account when buying and transportation costs are definitely one of them. Many new home owners don't take into account the cost of repairs that may have previously been covered by a landlord or the availability of public transport that may have been utilized. It seems as people get farther out for a bigger house that public transportation in many instances declines. Good reminder to figure in commute and other transportation costs.
Rich - absolutely correct, owning a home only starts with the monthly mortgage payment. Taxes, utilities, upkeep, transportation to school and or/ work. Just being able to pay your mortgage does not mean you can necessarily afford the house.
James - you bring up an interesting argument about affordability. just working hard to pay a mortgage that you can barely make payment on each month and further sacrificing other aspects of your financial savings or personal life means you cannot afford the home. Ultimately, with inflation and other cost of living increases, you will lose the home if you do not get income raises
I have to say that I am disgusted with mortgage brokers and banks talking about affordability. They did not mentioned affordability when things were great. I know I am supposed to read my loan docs , but that is what I rely upon professionals for. Option Arm ?? what is that expect a small payment now. No one mentioned that it might go up 5+% points. Thanks WaMu and thanks mortgage brokers. Can I come stay with you know that I am getting kicked out of my home
Mr. WaMu customer - I know my empathy is probably not helpful. I have many friends and family suffering throught the same problems. It is a difficult time in our country right now. As I watched the presidential debate with great interest for the first time. Not sure which President will lead us back to prosperity. However, I am optimistic that we are at or very very near a bottom. I know things will turn around for you and your family and for all Americans.