New study calculates the urban "Sprawl Tax" of commuting between your house, your office, your favorite trailhead, and everywhere else.

Is there anything more frustrating than congested city streets? Dense urban centers are often synonymous with solid brake lights, traffic, and stressed out drivers. However, popular congestion cost studies reflect only one part of modern city living, neglecting the embedded costs of hauling yourself across, through, around, and between vast urban sprawl. Enter the “Sprawl Tax.”

The Brookings Institute analyzed the distances between people’s homes and offices, and found that the distance travelled links to a range of social and economic outcomes. For 67 cities between 2000 and 2012, the number of jobs located within a typical commute dropped 7%. Suburban sprawl expanded, drawing jobs farther away from both urban and suburban residents: 32 million city and 59 million suburban residents saw their commutes lengthen. The distance growth was more pronounced for poor residents: jobs within a typical commute fell 17% for poor residents compared to a drop of 6% for the non-poor.

job proximity

This data inspired City Observatory to run the numbers on the “Sprawl Tax” so many major metropolitan area residents now face. For the country’s largest 50 cities, a typical resident sees a Sprawl Tax of $1,400 per year. In total, these 50 cities see $107 billion dollars a year in “Sprawl Tax.” Atlanta clocks in as the most costly at $3,291 per worker. The San Francisco Bay Area runs $442 per worker, with the NYC metro area at $182 per worker. The hours stack up fast… totaling 3.9 billion across all 50 cities or 50 excess hours per commuter per year.

If history is any guide to future urban development, we might be at peak Sprawl Tax: the average American commuter spends 18% of her income on transportation while the average European commuter spends 13%. In the meantime, please drive safely! And do let us know if you have any excellent podcast suggestions.

About Millen Paschich

Millen began his career at Cambridge Associates, trained in finance at SMU, and has an MBA from UCLA. Talk to him about bicycling, business, and green chile burritos.

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