“Drive until you qualify” -- the gas-mortgage connection

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Yes, more on gas prices. The big brain blog Calculated Risk agrees: the spike in gas prices is a big problem for exurban locales such as Temecula: ‘The combination of the housing bust plus high oil prices is hitting exurban towns like Temecula very hard.’

CR links to a solid piece from Bloomberg exploring the gas-housing double whammy, and what it means for newer communities out on the fringe of big metro areas: ‘It was drive until you qualify’’for a mortgage, says Robert Lang, director of the Metropolitan Institute at Virginia Tech in Alexandria, Va. ‘You can’t do that anymore. Your cost of transportation will spike too much.’’

But, and those of you who think I’m dead wrong about gas prices will enjoy this: The New York Times, also big in the brain department, has an interesting take on this: people in our region make relatively good incomes; gas, as a percentage of income, is relatively low in Southern California. The NYT’s conclusion, expressed in this graphic: highgas prices will hit much harder in poor, rural areas such as Wilcox County, Ala.

Your thoughts? Comments? E-mail story tips to peter.viles@latimes.com
Photo: Los Angeles Times