A new real estate term I learned today: “location-efficiency standards.”
Homeowners in areas that are car-dependent and without transit options are at greater risk of foreclosure, according to a new report by the Natural Resources Defense Council (NRDC). which is calling for mortgage underwriting standards to start taking so-called “location-efficiency standards” into account.
Transportation costs represent a significant financial outlay — accounting for roughly 17% of the average American household’s income. The report found that if your only choice is to drive, you have much less economic flexibility — flexibility that can protect you from foreclosure in tough times.
File Under: Trade in the car for a bicycle.