May 23, 2007

Four Buck Gas Good for DC

and every other urban area in the country. "We love it out here, plus we are only 25 miles from Dupont Circle" say many suburbanites.

Well with traffic congestion suburban life now means more time in your car and with rising gasoline prices that means more money for the daily drive on 66, 95 or whatever interstate you pick. Moreover, the extra cost per square foot of that condo can now be more easily offset because of historicly high gasoline prices.

Of course, no one is going to move their settled family of four from Loudon to DC because of the high price of fuel. But if a family -- particularly a family of one -- is deciding where to live, the relative impact of commuting costs has changed as long as gasoline prices stay high. The way SUV sales are down, the prices of DC homes and condos tends to go up, all else being equal as the economists say.

True enough the price will settle down after driving season is over, but the high price is contributing to the DC renaissance. No doubt about it.

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