Impact of Reduced Driving on Housing Market Trends in America
American Real Estate Association co-founder Jason Haber unpacks the state of the housing market and assesses Redfin’s announcement of a ‘great housing reset’ coming in 2026 on ‘The Claman Countdown.’
Americans’ driving habits are in gradual decline, which could significantly impact the housing market, according to a recent report. Despite this shift, most new housing supply continues to be constructed in car-dependent areas, as highlighted by Realtor.com. This trend indicates a disconnect between evolving consumer behavior and the locations where developers are choosing to build new homes.
Data from the Federal Highway Administration reveals that vehicle miles traveled per capita have decreased by 2.3% since 2019. Over the past two decades, the average American now drives nearly 5% less, emphasizing a growing independence from driving.
Despite Americans driving less, most new housing supply continues to be built in car-dependent areas, according to Realtor.com. (Getty Images)
Interestingly, urban areas with transit stations are not seeing a proportional increase in housing supply compared to areas without these transit options. The report highlights that transit-oriented development—housing and land use designed around transit to foster walkable communities—could be a viable solution to bridge this gap. Research indicates that such developments can enhance local economies by increasing foot traffic to nearby businesses.
However, challenges remain. Even with heightened funding and policy focus, housing supply near transit stations continues to lag significantly. The Urban Institute’s comprehensive analysis reveals that nearly nine times as many housing units were constructed far from transit stations compared to those built near them over the last two decades. Yet, there are signs of gradual improvement.
The report noted that transit-oriented development is one option to help close that gap. (Getty Images)
TRUMP HOUSING PLAN COULD BRING ‘BIG WIN’ FOR AMERICANS, PULTE SAYS
From 2000 to 2019, urban areas with transit stations added 2 million housing units, while areas without transit stations saw a staggering increase of 17.6 million units. This stark contrast highlights that the majority of new housing supply is still being constructed in car-dependent areas.
While the trend has shifted somewhat since the 1990s, with neighborhoods near stations that opened between 2000 and 2009 experiencing a housing growth rate about eight percentage points higher than comparable neighborhoods without transit access, the overall demand for housing continues to outpace supply.
American Real Estate Association co-founder Jason Haber unpacks the state of the housing market and assesses Redfin’s announcement of a ‘great housing reset’ coming in 2026 on ‘The Claman Countdown.’
Americans’ driving habits are in gradual decline, which could significantly impact the housing market, according to a recent report. Despite this shift, most new housing supply continues to be constructed in car-dependent areas, as highlighted by Realtor.com. This trend indicates a disconnect between evolving consumer behavior and the locations where developers are choosing to build new homes.
Data from the Federal Highway Administration reveals that vehicle miles traveled per capita have decreased by 2.3% since 2019. Over the past two decades, the average American now drives nearly 5% less, emphasizing a growing independence from driving.
Despite Americans driving less, most new housing supply continues to be built in car-dependent areas, according to Realtor.com. (Getty Images)
Interestingly, urban areas with transit stations are not seeing a proportional increase in housing supply compared to areas without these transit options. The report highlights that transit-oriented development—housing and land use designed around transit to foster walkable communities—could be a viable solution to bridge this gap. Research indicates that such developments can enhance local economies by increasing foot traffic to nearby businesses.
However, challenges remain. Even with heightened funding and policy focus, housing supply near transit stations continues to lag significantly. The Urban Institute’s comprehensive analysis reveals that nearly nine times as many housing units were constructed far from transit stations compared to those built near them over the last two decades. Yet, there are signs of gradual improvement.
The report noted that transit-oriented development is one option to help close that gap. (Getty Images)
TRUMP HOUSING PLAN COULD BRING ‘BIG WIN’ FOR AMERICANS, PULTE SAYS
From 2000 to 2019, urban areas with transit stations added 2 million housing units, while areas without transit stations saw a staggering increase of 17.6 million units. This stark contrast highlights that the majority of new housing supply is still being constructed in car-dependent areas.
While the trend has shifted somewhat since the 1990s, with neighborhoods near stations that opened between 2000 and 2009 experiencing a housing growth rate about eight percentage points higher than comparable neighborhoods without transit access, the overall demand for housing continues to outpace supply.
