Americans are driving less – and it could upend the housing market

Core Insights - Americans are driving less, with vehicle miles traveled per capita declining by 2.3% since 2019 and nearly 5% less compared to two decades ago, indicating a shift in consumer behavior away from car dependency [2] - Despite this trend, new housing supply continues to be predominantly built in car-dependent areas, highlighting a disconnect between changing consumer habits and housing development [1][12] Housing Supply and Transit Development - Urban areas with transit stations are not seeing as much housing supply compared to areas without these stations, with nearly nine times as many housing units built far from transit stations over the past two decades [5][8] - Transit-oriented development is suggested as a solution to bridge the gap, as it can enhance local economies by increasing foot traffic to nearby businesses [5] - However, housing supply near transit remains significantly behind demand, with urban areas with transit stations adding only 2 million units from 2000 to 2019, while areas without stations added 17.6 million units [12] Historical Trends - Neighborhoods near transit stations that opened in the 1960s to 1980s experienced lower housing growth rates compared to other urban areas in the following decades [9] - A positive shift occurred in the 1990s, with neighborhoods near stations opened between 2000 and 2009 seeing housing growth about eight percentage points higher than comparable neighborhoods without transit access by 2019 [11]