by marko » Wed 09 Aug 2006, 15:30:26
$this->bbcode_second_pass_quote('rwwff', 'T')his is where I diverge from the folks that say back to the city... I think it is fair to say that most folks who are commuting long distances right now are typically driving vehicles that get 20mpg, and cost an addition 30-40 cents per mile in maintenance, depreciation, insurance and expendables. If gas goes to $6 per gallon, with the same vehicle that only takes the costs from 50 cents per mile to 65 cents per mile. If gas goes to $20 per gallon, then we're getting somewhere on cost, taking it up to $1.30 per mile. However, lets now looks at the extreme adaptation, if that person goes out and buys a scooter that gets 80 miles per gallon, and has an additional cost of 20 cents per mile, that takes it all the way back to 45 cents per mile.
Your costs per mile look affordable, until you multiply them by the number of miles people are actually driving. Houses sold in the recent housing boom have often been 50 miles or more from the nearest urban center. Multiply your numbers by 100 (roundrip commute) and then by 20 work days per month. The current commute, at 50 cents per mile, adds up to $1,000/month. That is serious money, on top of a mortgage. How many people have been swinging this just by refinancing their house every time it appreciates? At $1.30 per mile, the monthly cost goes to $2,600. That probably exceeds the median take-home pay.
And this is assuming gas at "only" $20. I don't think that it will get much higher than that in the next 10 years, but what about 20 or 30 years? Gasoline is likely to become a substance like fine wine that is affordable only to the very rich, after the military and security services have claimed their share.
Considering that many dual-income households will be losing one of those incomes as the economy shrinks and that the price of food and anything else requiring transport will rise relative to wages, I just don't see how most households will be able to keep this up. Either they stay where they are and take up full-time intensive gardening and part-time local odd jobs or they move closer to their money job.