Dwell Downtown Austin Blog

Foreclosures higher in car-dependent neighborhoods

Posted in Condos, Downtown Austin Condos by Bryan Cady on February 20, 2010

This article is centered on location relative to train stations; however, in my opinion it is not too far of a stretch to conclude that this is applicable to downtown Austin and its surrounding areas within the urban core.

“Can living near a train station save your house?

Researchers looked at mortgage defaults in three cities and found something curious — the chance of foreclosure is higher in neighborhoods more dependent on cars, according to a report by the Natural Resources Defense Council, which included data from Chicago’s Center for Neighborhood Technology. The report examined 40,000 mortgages in Chicago, Jacksonville and San Francisco.”

The link became more obvious in looking at foreclosures after July 2008, when gas spiked over $4 a gallon, said CNT President Scott Bernstein, who studied foreclosures in the Chicago area. Bernstein found that gas price spikes provide an “early warning” of a rise in foreclosures in car-dependent communities.

“Nobody should be surprised this is happening,” said Bernstein, noting that the cost of a gallon of gas doubled between 2000 and 2008. “In the suburbs, two or three cars and all that driving can cost more than the mortgage,” Bernstein said. “If gas prices go up, some percentage of people will find those pressures to be too much.

Source: http://www.suntimes.com/news/transportation/2048241,CST-NWS-ride15.article?utm_source=mortgagenewsclips+test+list&utm_campaign=0d45ce3b47-RSS_EMAIL_CAMPAIGN&utm_medium=email

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