Americans are dumping their cars
More people are relying on public transportation in a time of high gas prices, and young adults in particular don't really want a set of wheels.
It may be hard to believe, especially if your commute involves a daily trial-by-traffic jam, but there indications that many Americans are driving less. Business Insider recently looked at some very informative graphs on this topic. One from the Department of Transportation shows the number of U.S. vehicle miles driven, which had been rising steadily since the 1970s, declined at the start of the recession in 2008 and has remained flat ever since. Another graph, from the traffic information service Inrix, notes average commute times during peak hours have also been dropping steadily as gas prices rise.
Some of these trends in our driving habits may reflect a changing economy. The recession certainly prompted many cash-strapped drivers to economize and cut back on unnecessary trips.
But a study done last spring by the Frontier Group and the U.S. Public Interest Research Group Education Fund (.pdf download) found that Americans have been driving less since the start of the new millennium, well before the recession -- and that the average American was driving 6% less per year in 2011 compared with 2004.
New technologies also have us driving less. Why risk a traffic delay en route to an office meeting when everyone can teleconference? And if you can shop online, you can probably give up an extra trip or two to local mall.
Another factor is people ages 16 to 34, who the study says are driving less than previous generations and more readily adopting non-car transportation alternatives.
The Urban Land Institute reports that many younger Americans are opting go without a car in exchange for living in smaller homes near public transportation and in communities that have amenities like shops and restaurants within walking distance. For many young adults, according to the ULI's annual report, "affordable mass transit beats the hassle and expense of owning a car (not just loan payments, insurance, repairs, gas, but also parking). Others rent when they need to drive, using shared cars."
Many researchers, in fact, "are seeing the young with no interest in cars and driving," Alan Pisarski, a transportation and traffic trends analyst, told Business Insider, "at the same time that joblessness among the young is colossal -- not to mention their parents' joblessness -- or their college loans."
And with more older drivers handing in their car keys, public transportation becoming faster and more reliable, more people living in urban areas and gas prices remaining high, some observers wonder whether driving in developed nations has reached a saturation point.
The concept of what The Economist calls "peak car" is far from certain. And the magazine acknowledges that there's a good chance economic recovery will put more people back in driver's seats -- especially in developing nations where car sales are booming.
But it notes that countries like China, which has the world's biggest car market, might hit the "sprawl wall" sooner than developed nations did and find gridlock and poor air quality not worth the trade-off.
More on moneyNOW
Gas Prices are at $ 3.59 and keep rising. Less people are driving, means less money for feds in tax revenue. Cost of maintenance to highways and bridges keep rising and the infrastructure needs are skyrocketing, irrespective of not having tax revenue to fix them. Corrosion bacteria does not understand what goes on they keep producing corrosion by eating salt and drinking contaminated water. Having said all that, I must be a corrosion bacteria because I don't understand why gas prices keep going up when less and less people are driving to work, urban commuters give up their cars for junk yards and sleep in once a week? I'm so confused? Who own gas companies in America?
DATA PROVIDERS
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by SIX Financial Information.
Japanese stock price data provided by Nomura Research Institute Ltd.; quotes delayed 20 minutes. Canadian fund data provided by CANNEX Financial Exchanges Ltd.
RECENT POSTS
While incompetent bosses like Michael Scott and Andy Bernard typically can’t survive in the workplace, office romances are a very real part of corporate culture.
- Southwest Airlines turns less legroom into $773M
- 'American Idol' gets sorry ratings for season finale
- Powerball's wacky sense of humor
- Millions of Facebook's users are actually pets
- Can crowd funding rescue the LA Times?
- Domino's debuts a DVD that smells like pizza
- Average US retirement age climbs to 61
- McDonald's aims to slim down its 145-item menu
- Bathroom reading goes digital with iPad TP stand
MARKET UPDATE
[BRIEFING.COM] The S&P 500 ended this week with a bang, roaring to a new all-time high on the back of stronger-than-expected economic data, influential leadership, and an ongoing appreciation for the Fed's monetary policy support.
The bullish bias was evident in premarket action as the S&P futures pointed to a higher start without the benefit of any definitive news catalyst. Stocks indeed benefited from a blast of buying interest at the opening bell on this ... More
More Market News
TOP STOCKS
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
MSN MONEY'S
- Shared
- Commented
- Viewed



