The real drag on the economy? Sprawl

...He points out: "For mortgage lending, we have made almost no progress on incorporating energy and transportation costs into underwriting. When lenders evaluate or not whether borrowers can reliably make payments on a median mortgage of about $150,000 (or 80% of a median house price of about $180,000) they continue to ignore the 30-year commitment to pay some $300,000 in transportation expenses for a house located in suburban sprawl, and another $75,000 in utility costs."

"While these cost obligations are not contractual commitments, they are in practice real issues that affect whether or not the borrower can make their payments. Think about it. If you are in financial distress in Chicago in the winter, and you can't pay both your mortgage and your heating bill, which will you pay first? If you live in sprawl and need your car to drive to work, or look for a job, which bill will you pay first, your auto loan and gas or your mortgage?..." TMC Net