Moving to an area with lower housing costs often doesn’t pay off, especially for low-income Americans, according to a study prepared by the Center for Housing Policy (2006).

The study found that housing and transportation are the two largest expenses for most households with 27.4% of income going toward housing and 20.2% going toward transportation. Together, these items account for 48% of household income. For working families with incomes between $20,000 and $50,000, these items account for 57% of household income. 

As housing costs rise, families move further away from jobs to find housing they can afford. But with many families, their effort to save on housing expenses leads to higher transportation costs and an even larger portion of their household budget spent on both items. Researchers found that increased transportation costs associated with longer commutes (12 miles or more) outweighed any savings from lower rent or mortgage payments.

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