"Miles per House" Bodes Well for the New Traditional Neighborhood

Energy Costs to Become Top Buyer Concern

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Look for “house miles” to become an important consideration in home purchases in coming years, say land-use experts who gathered for the Urban Land Institute’s recent meeting in Denver.

“A new generation of home buyers is looking at the world differently, and to them, green building will be a given," says John McIlwain, a senior resident fellow of ULI. "The issue of energy savings will be a fundamental driver in their decisions on what and where to buy." The cost of distance, along with heating and cooling, has a direct impact on housing affordability, McIlwain pointed out, noting that “miles per house” — the number of miles a home is from employment, retail, education, and entertainment — could become a standard measurement of location desirability.

A 2005 ULI survey of consumers found them willing to combine more trips and use mass transit more to cut down on fuel consumption, said Robert Dunphy, who's also a senior resident fellow of ULI. Transportation spending is the second largest component of consumer expenses, currently taking up an average of 19 percent of their monthly income (monthly home mortgage payments generally at least 33 percent).

As the cost of energy plays a more important role in home-buying decisions, house miles will become a deal breaker or maker. That trend will drive the development of sustainable housing and "green" communities. The land-use experts discussed some designs that are now gaining traction, such as close-in infill projects, more downtown housing, and more mixed-use projects in urban centers and on the urban fringe.

Source: Daily Real Estate News, by Camilla McLaughlin for REALTOR® Magazine Online