Tuesday, Sep 6 2011 12:19PM
Transportation costs will be included in a new housing and transportation affordability index sponsored by HUD.
The U.S. Department of Housing and Urban Development (HUD) recently announced it has hired two companies to create a National Housing and Transportation Affordability Index to provide prospective homebuyers with an accurate estimate of all costs associated with a home purchase.
HUD reports past housing affordability indices used by the agency haven't included transportation costs. With the average household spending more than 20 percent of its income on transportation costs, according to a Center for Housing Policy study, HUD has decided to add the expense into the new index.
"The availability of a national affordability index will provide consumers better information about the true costs of a home by accounting for that housing’s proximity to jobs, schools and other services," said Secretary of U.S. Department of Housing and Urban Development Shaun Donovan. "Our goal with the creation of this housing and transportation index is to provide American families with ... a better understanding of their expenses and household budget."
The Manhattan Strategies Group (MSG) and the Center for Neighborhood Technology received a $3.2 million grant to create the index. Shezad Habib, director of MSG, said the index should substantially help government and private agencies provide better affordable housing options for Americans.