Metro Atlanta home prices were up 6.6 percent in May from a year earlier, slightly higher than the national average of 6.3 percent, according to CoreLogic.
In spite of rising prices, homes in the area remain relatively affordable, with the median list price at $238,000. However, potential buyers focusing on pure housing costs may not be looking at the full picture of affordability, according to the Housing and Transportation Affordability Index.
Traditionally, a home is considered affordable when it expends no more than 30 percent of income, as is the case in metro Atlanta. But, when you factor in transportation costs, usually a household’s second-largest expense, the average home accounts for nearly 54% of household income.
The typical metro Atlanta household owns 1.45 cars and drives them 17,937 miles per year. This results in gas, ownership and maintenance costs totaling $8,491 a year, on average.*
While future projects such as the Northwest Corridor and the proposed $8 billion MARTA expansion could ease some of metro Atlanta's driving woes, those who want to lower transportation costs may want to consider location-efficient neighborhoods – those that are compact, walkable and conveniently accessible to jobs, transit and other amenities.
Those living in location-inefficient areas are more dependent on their vehicles, drive them farther distances and, consequently, drive up the cost of living.
Only 1 percent of neighborhoods in metro Atlanta are location-efficient.
Housing + Transportation Affordability by county (as a percentage of income)
• Cherokee: 58 percent
• Clayton: 47 percent
• Cobb: 55 percent
• DeKalb: 51 percent
• Douglas: 53 percent
• Fayette: 63 percent
• Fulton: 54 percent
• Gwinett: 55 percent
• Henry: 55 percent
• Rockdale: 52 percent
*The statistics are modeled for the Regional Typical Household. Income: $56,605 Commuters: 1.18 Household Size: 2.76 (CBSA: Atlanta-Sandy Springs-Roswell, GA)
About the Author
