Gas/transportation prices and (Charlottesville) real estate – are they related? What do you think?
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The Center for Neighborhood Technology has been working on a Housing + Transportation Affordability Index for at least five years. Census block by census block, the index evaluates the cost burden, relative to area incomes, for housing and transportation on the average family living there. They released a pilot project for the Minneapolis-Saint Paul region in 2006, then expanded the analysis to major metro areas all around the country.
The index has made a big splash. It has been used to inform mortgage underwriting practices as well as regional housing public policy. Today they release data for a broader range of metropolitan areas, including the Charlottesville MSA. The newer website also allows users to break all of the data down into owners costs and renters costs, different income classes, greenhouse gas emissions, and a variety of other factors.
If this prediction comes to fruition, will your buying/moving decisions within or to the Charlottesville area be affected?
EIA forecasts that the annual average regular grade retail gasoline price will increase from $2.35 per gallon in 2009 to $2.84 in 2010 and to $2.96 in 2011 because of the projected rising crude oil prices. Average U.S. pump prices likely will exceed $3 per gallon at times during the forthcoming spring and summer driving season. Projected annual average retail diesel fuel prices are $2.96 and $3.14 per gallon, respectively, in 2010 and 2011.
Related reading from RealCentralVA.com over the years:
2005 – Urban Flight
2006 – Gas prices and real estate