Drive Until You Qualify: Evidence from the Twin Cities Urban Area

Abstract

"Drive until you qualify" is a phrase often cited as a major cause of urban sprawl and increasing dependence upon foreign oil. The primary idea is that house prices decay with distance from the center of a city because of falling land prices. This study analyzes empirical data from available real estate transactions to model the price/distance dynamic in the Twin Cities metropolitan area. While generally true, the phenomenon has strong directional biases and responds well to transportation corridors and physical barriers.