The national news about the housing market isn’t good. And skyrocketing gas prices trigger fears about the impact on the economy. Now a new study suggests that the two issues have more to do with each other than previously thought.

Portland economist Joe Cortright says that “The gas price spike popped the housing bubble." In a new report “Driven to the Brink,” Cortright finds that the decline in housing markets is strongly correlated with auto dependence.

"As measured by the change in housing prices over the last year, distant suburbs have seen the largest declines, while values in close-in neighborhoods have held up better, and in some cases continued to increase," according to the report.

The report’s findings echo recent stories in the local and national media on the impact of long commute on housing market. (Read more about Cortright's report here.)

A recent story on National Public Radio detailed the trends in housing costs in the Washington DC metropolitan area where a 2 hour commute isn't unusual. Regionally, home prices are down 11 percent, even higher in areas with longer commutes to the city center. But it's a different story for homes in the city's center, where median home prices are 3.5 percent higher than a year ago.

Connecting the Dots in Oregon

Oregon has weathered the housing crisis better than most states. And the credit, in several instances, is being given to Oregon’s innovative land use planning system.

In his speech at 1000 Friends’ Tom McCall Legacy Dinner, Congressman Earl Blumenauer told a story of a recent meeting he had with a dozen northwest bank presidents. As they were talking about economic issues and the housing crisis, one president observed how the land use planning issues they've always complained about have "protected us from disaster."

Play video clip

In a recent radio interview, Brian Bushlach, host of KXL Radio’s Home & Wealth show, was asked why Portland was able to survive the housing crisis. Bushlach’s answer:

“It’s that urban growth boundary…that’s prevented builders from going crazy like in other parts of the country where they could plow out all the land & really overbuild…that alone has really insulated this housing market."

Listen to the Bushlach interview here.
[Note: Bushlach interview runs after a story about the Pennsylvania primary.]

Making the Future Work Better for All Oregonians

After paying the mortgage or rent, transportation costs are the second largest household expenditure. As gas prices continue to climb, the price of housing located further from jobs and shopping will be severely impacted and that housing will continue to become less desirable.

Here in Oregon, we need to make smart choices about how we grow. We need to make smart transportation investments in public transit, biking and pedestrian infrastructure that provide Oregonians with the ability to make fewer trips by car.

You can read more about these policies in our Blueprint for Oregon's Future.