Gas Prices and Real Estate

Interesting piece picked up by The Oil Drum on the relationship between gas prices and real estate in Australia. It summarizes a study of the effect on commuting costs when considering various communities progressively further outside the urban/suburban/exurban horizon west of Sydney.

Here is the effect in the $2/litre scenario, with red representing the highest percentage of income going to fuel consumption, etc.:

Granted, this is based on a few assumptions, not least of which being that a commuter-centric culture will continue to prevail in a high-price oil world. That is a debatable point.

Nevertheless, interesting stuff, as is the underlying paper. Can barely imagine what this would look like here in car-dependent, freeway-riddled southern California.