Dave Wetzel wrote:
Hi I met Alain today.
Very interesting Frenchman whos lived here in London , UK for 20 years.
He is associated with University College London.
You may find his work of interest.
Ed Dodson here:
Thanks, Dave. I will certainly take a look. At Fannie Mae, we took a close
look at transportation expenses as a variable in whether a home buyer could
afford to handle housing (i.e., mortgage) debt. This involves rather
detailed analysis of household expenses, budgeting and disable income. In
the end we came up with a set of guidelines that essentially permitted a
borrower to carry more housing-related debt if they owned only one
automobile and/or used public transit to commute to and from work. If the
employer subsidized their public transit costs, this would be a plus factor.
All of this was done, of course, in response to rising land prices --
finding ways to keep people from being priced out of the housing market.
These measures do have some benefit, but only if the number of people added
to the demand side of the equation is not large enough to force land prices
up even more.