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.
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?
Ban futures trading. As capitalism holds us all hostage.
Chavez's Socialized/Nationalized gas in Venezuela costs 25 CENTS at the pump in U.S. dollars.
Could this spur the repopulation of city centers and bring people in from the bedroom communities? I'd hope so, then we could control urban sprawl somewhat.
six mid 20's young people living in Los Angeles sharing a house..all working None have cars...too expensive...spend 1/10 of what it would cost, by using public trans, walking and biking....
Copyright © 2014 Microsoft. All rights reserved.
Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. 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 Morningstar Inc.
[BRIEFING.COM] The S&P 500 (-0.5%) remains pressured as every uptick has been met with selling activity. This morning, the health care sector (-0.6%) was an early source of weakness in reaction to concerns about the impact of new rules on tax inversion deals.
Over the past 30 minutes, Bloomberg reported that Pfizer (PFE 30.01, -0.17) has approached Actavis (ACT 242.88, +7.02) about a potential acquisition. Actavis, which traded with a slim loss ahead of the reports, has ... More
More Market News
Bill Stiritz has experienced an estimated $145 million in paper losses on his investment in the company.
MUST-SEE ON MSN
- Video: Easy DIY smoked meats at home
A charcuterie master shares his process for cold-smoking meat at home.
- Jetpacks about to go mainstream
- Weird things covered by home insurance
- Bing: 70 percent of adults report 'digital eye strain'