3993310255_a1a0475402As we all know, public transportation is key in large cities where it can be difficult to get around quickly or find parking. It makes life easier by eliminating the stress of navigating the city as well as much less costly since you don’t have to worry about owning a car or buying gas. Another way that public transportation helps that many people probably haven’t thought of is that it can lower your chance for foreclosure!

Foreclosures and Public Transportation

In a recent study by the Natural Resources Defense Council, foreclosure rates were lowest in places where public transportation was easily accessible. The three cities that the council used for its results were San Francisco, CA, Chicago, IL and Jacksonville, FL.

It’s believed that people were able to save money on owning a car, paying for gas and a parking spot, enough so that they were better able to afford their mortgage.

Other Possible Reasons for Lower Foreclosure Rates

These results are surprising since you would suspect that these cities would have just as high or even higher foreclosure rates compared to other places in the United States since their cost of living is higher. Even though you are not paying for a car, you still need to pay for the higher priced homes. However, it’s also possible the reason why the council fond this correlation wasn’t because of the easy accessibility of public transportation but because jobs in these cities generally pay their employees more to match the higher cost of living, which in turn, makes it possible for them to continue to afford their home. Nevertheless, it’s an interesting finding and it does make you wonder.

Photo Courtesy of: BasicGov on flickr

About the Author: Marcelina Hardy

Aside from her experience in buying and selling homes, Marcelina Hardy takes an active interest in news and trends within the real estate and mortgage industries. She has a MSEd in Counseling from Old Dominion University and a BA in Psychology from the University of Massachusetts at Amherst.

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