Electric vehicles have become mainstream and transit-oriented neighborhoods continue to expand. Here’s how affordable transportation and better mobility options are influencing where new buyers can realistically put down roots.
EVs Cut Costs
Federal data from the Department of Transportation shows EV owners spend significantly less on fuel and maintenance than gasoline-car drivers, thanks to lower electricity prices, according to the Department of Energy.
Battery-electric models are also becoming more affordable upfront as battery costs fall and competition grows, narrowing the gap between EVs and conventional gasoline-powered cars.
These savings can be applied to homeownership costs such as your down payment, mortgage payment, utility bills, HOA fees, and more. Plus, you may qualify for certain tax benefits if you have an EV-ready home.
Transit-Oriented Living Reshapes Budgets
Reliable transit and walkable design reduce the need for multiple cars — and the high costs that come with them. As a result, homes with higher purchase prices can be more economical if they eliminate commuting expenses or allow a household to eliminate the need for a second vehicle.
Transit access can also boost neighborhood value over time, influencing long-term affordability. A report from the Mineta Transportation Institute shows a California transit-oriented development saved roughly 18 percent of their annual transportation expenses.
A Broader Set of Viable Neighborhoods
EV adoption and transit access often work hand in hand. Households may get by with one EV instead of two gasoline cars, use an EV only when needed, or apply transportation savings toward higher rents or mortgages in better-connected areas.
Urban, suburban, and some rural pockets may become newly affordable when these savings are factored in, according to the U.S. Department of Energy. That might even mean certain master-planned communities are on the table, which can reduce costs even further with features such as walkability, included amenities (think included gym and pool access), and features such as schools and retail at your fingertips. Plus, many MPCs now include EV-ready garages and neighborhood charging hubs.
Trade-Offs Remain
While EVs and access to transit offer many benefits to prospective homebuyers, there are challenges, too:
EVs still cost more upfront than gasoline-powered vehicles, and savings depend on local electricity rates, charging access, and mileage.
Transit-rich areas often command higher housing prices, limiting entry-level affordability.
In rural or low-density regions with limited transit, it’s possible that neither EVs nor TODs deliver the same financial payoff.
What Buyers Should Consider
A “housing + transportation” approach to affordability is a solid way to get started, if EVs are a factor in your decision to buy a home.
Buyers should:
Weigh commuting and vehicle costs alongside mortgage payments.
Consider walkability, transit access, and EV charging options.
Assess whether switching to an EV would lower total living costs.
Account for future growth in both EV adoption and transit-oriented development.
The Bottom Line
With transportation being such a decisive factor in household budgets, the communities that make driving cheaper or unnecessary are likely to look much more compelling to new buyers.
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