Speaking of $6-a-Gallon Gas…
Expensive gas isn’t enough to keep many Americans from moving out beyond the exurbs—way beyond, according to this story in Sunday’s NYT.
According to the story, formerly remote rural places like Blairsville, GA (80 miles north of Atlanta), Milaca, MN., 60 miles north of Minneapolis, and Vilas County, WI, 220 miles from Milwaukee, are growing rapidly, even as urban areas lose residents. The logic, according to the story, “is not obscure,” even for those who face commutes of more than 100 miles. “The new destinations are precisely the places, like Archer County, that have been undervalued — whether by industry or agriculture or mass leisure or urban flight. They are the places where you can still get something that feels like a good life, without the salary of a chief executive.” Amanda Peterson, a 27-year-old machine shop worker in Minneapolis, justifed her 120-mile round-trip commute from Milaca thus: “We saved forty to fifty thousand dollars on a house, and that buys a lot of gas.”
The story, like coverage of Midas’s “America’s Longest Commute” contest (the gas-guzzling winner, a man who drives 372 miles round-trip between Mariposa and San Jose, CA, every day, got $10,000 in free gas), ignores the huge environmental impact of such a car-dependent lifestyle choice, though it does mention one possibility that could end the alarming ex-ex-ex-urban migration: Gas prices, already over $3 a gallon, could continue to increase, “stop[ping] the American movement from spreading farther out.”


In fact you'd expect that high gas prices would even in theory increase not decrease urban flight. American demand for gasoline is relatively price-inelasitic. What responsiveness there is between price and demand happens because high prices impact income. When prices get high enough they start cutting into disposable income and eventually that forces structural changes in the way people get about.
The same income impact of high gas prices makes the move to the suburbs more likely, because high gas prices mean lower income that can be used for house payments, and thus make it harder to go anywhere else.
What's odd is that it seems that a move to the suburbs is less of stretch from the status quo than simply cutting out driving. That says a lot about how significant the change from car to public transit travel is in this country.