How Length of Commute Affects Rental Prices | HotPads

How Length of Commute Affects Rental Prices

Los Angeles Renters Pay The Highest Premiums For Shorter Commutes; Philadelphia Residents Pay The Lowest

 

  • Renters living in living in the zip codes with the 25 percent longest commute times in the nation spend an average of 31.8 minutes commuting one-way to work and pay an average of $1,317.45 in rent each month.
  • Renters living the 25 percent shortest commute areas spend 23.8 minutes commuting one-way to work and pay an average of $1,559.20 on monthly rent. 

San Francisco, Calif. - January 29, 2015 -- Metropolitan renters living in zip codes with the longest commute times pay an average of $241.75 less in rent, but spend an average of 8 minutes longer getting to work, according to a HotPads analysis.

HotPads compiled rental data, along with commuting data from the Census’ 2012 5-Year American Community Survey to compare the rental premiums associated with shorter commute times within 11 metropolitan areas.

For each metro, HotPads compared zip codes with the 25 percent shortest one-way commutes against zip codes with the 25 percent longest one-way commutes. HotPads then found the median rental price for these areas to calculate a rental premium that zip codes with shorter one-way commute-times command over those with longer one-way commute-times.

The data shows that renters in Los Angeles pay one of the biggest differences, more than $600, more in rent for an average one-way commute savings of just under 7 minutes.

Here is a look at how all of the metro areas stack up:

Rental Premiums vs. Commute Time Savings*

 

Rent Premium

Difference in One-Way
Commute Time 

Los Angeles, CA

$635.50

6.7 minutes

Washington DC

$534.25

10.4 minutes

San Francisco, CA

$376.25

7 minutes

Atlanta, GA                         

$300.25

9.1 minutes

Seattle, WA                             

$232.50

7 minutes

New York, NY

$200

13.2 minutes

Chicago, IL

$150

7 minutes

Miami-Fort Lauderdale, FL

$112.50

7.6 minutes

Boston, MA

$61.75

6.9 minutes

Phoenix, AZ

$43.75

6.4 minutes

Philadelphia, PA

$12.50

6.5 minutes

Average

$241.75

8 minutes

*Compares only the 25% shortest and 25% longest commuting zip codes by metro area.

Those living in the zip codes with the longest commute times in the nation spend an average of 31.8 minutes commuting one-way to work and pay an average of $1,317.45 in rent each month.

Longest Commute Times* vs. Rent Prices

 

Median Rent

Median One-Way Commute Time

Los Angeles, CA

$1,462.50

30 minutes

Washington DC

$1,353.75

37.3 minutes

San Francisco, CA

$1,747.50

31.1 minutes

Atlanta, GA                         

$875

31.1 minutes 

Seattle, WA                              

$1,195

29.7 minutes

New York, NY

$1,650

13.2 minutes

Chicago, IL

$1,200

32.6 minutes

Miami-Fort Lauderdale, FL

$1,400

29.2 minutes

Boston, MA

$1,658.25

31.5 minutes

Phoenix, AZ

$900

28.3 minutes

Philadelphia, PA

$1050

28.6 minutes

Average

$1,317.45

31.8 minutes

*Comparing only the 25% longest commuting zip codes by metro area.

Conversely, those living the 25 percent shortest commute areas spend 23.8 minutes commuting one-way to work and pay an average of $1,559.20 on monthly rent.

Shortest Commute Times* vs. Rent Prices

 

Median Rent

Median one-way Commute Time

Los Angeles, CA

$2,098

23.2 minutes

Washington DC

$1,888

26.9 minutes

San Francisco, CA

$2123.75

24.1 minutes

Atlanta, GA                         

$1,175.25

22.1 minutes

Seattle, WA                              

$1427.50

22.7 minutes

New York, NY

$1850

26.7 minutes

Chicago, IL

$1350

25.6 minutes

Miami-Fort Lauderdale, FL

$1512.50

21.6 minutes

Boston, MA

$1720

24.6 minutes

Phoenix, AZ

$943.75

21.9 minutes

Philadelphia, PA

$1062.50

22.2 minutes

Average

$1,559.20

23.8 minutes

*Comparing only the 25% shortest commuting zip codes by metro area.

Curious how your zip code stacks up in terms of rental price and commute time? Check interactive map here. Metro areas include only the shortest 25 percent one-way commute time areas in blue vs. the longest 25 percent one-way commute times in brown. Click on a zip code to see the median rental price and average one-way commute time for that area. Zoom out and drag to the particular city you want to check out.

Methodology

  •       Average Commute Time For Metro Area

o   Two disparate data sets were merged in order to calculate these Average Commute Times: First, the 2012 5year ACS data (acquired via IPUMS). Second, the Missouri Census Data –Geographic Correspondence Engine.

o   2012 5year ACS data only provides Commute Times for people that belong to a particular State and Public Use Microdata Area (known as “PUMA”). These State/PUMA regions cover multiples of ZipCodes.

o   We wanted to be able to generate data at the ZipCode level. This is where the Missouri Census Data – Geographic Correspondence Engine comes into play.

o   The Geographic Correspondence Engine enables one to project State/PUMA level information to individual zip codes.

o   Median Rent was compiled using HotPads data from August 2013 to October 2014.

o   The data was filtered out such that fraudulent listings, listings that have poor data quality (many null fields) were dropped from the sample set.

Premium Calculations

For each metro area, ZipCodes that have the shortest 25% and longest 25% average commute times were identified. Then we took the median rent and median average commute time of these two ZipCode groups. We then took the difference between these two zip codes in order to calculate the premium that zip codes with shorter commute-times command over those with longer commute-times.

 

HotPads Reports

Renting_With_Pets Commute_Times_Rent Couple_Aaartment_Hunting
Top Cities For Renting With Pets How Commute Times Affect Rental Prices Neighborhoods Where Bunking Up Saves
Want more content like this? Enter your email address and we'll let you know about it personally!
Fair Housing and Equal Opportunity
© 2017 HotPads