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Gas prices are climbing. Home values are falling. Who would have thought that these two economic crises could become closely related to change buying trends?

Recently, a friend was looking to purchase a home about 80 miles away from his work because they were less expensive there.

But a long commute with rising gas prices would cost him over $500 a month in gas alone. Instead, he decided to purchase a house near a train station, easily taking $160 off his monthly traveling expenses.

This isn't an isolated case, either. Industry trends are showing that buyers are increasingly becoming more concerned with gas bills and the time it takes to drive to work - even more now than during the oil shocks of the ‘70s.
Although this is a newborn trend, there are also early indications that homes located near subways, train stations, and bus stops seem to be selling faster and have a higher value than those in suburbia.

A recent survey of 900 Coldwell Banker agents revealed that 96% indicated clients were concerned with rising gas prices. 78% of the clients said they desired a shorter commute to work. Some people claimed that they were leaving very early in the morning to avoid rush hour traffic for a shorter ride. Even after they move into the city, drivers with a hybrid car still see a monthly savings on gas.

Homes in distant suburban areas are losing value fast - especially if they don't provide enough public transportation alternatives. With gas prices up over a dollar since last year, more younger home buyers are moving into the cities. This trend could have a big influence on the future development of American cities, as well as public modes of transportation. If gas prices continue to skyrocket, will public transportation even be affordable?

Dallas, Texas is responding to the current trend in public transport by expanding its Rapid Transit system. The service plans to double its miles of rail by 2014. Even though the project has a high price tag at $4 billion, the trends in city home purchasing seem to promise higher home values, as well as more buyers.

The mass transit system saw a predictable spike in riders once gas prices began to rise. Private investments in transit development (which includes condos and other projects that combine retail, residential, and entertainment space) have risen to about $7 billion in popular areas.

For over 30 years, we have enjoyed low gas prices, especially when compared to other countries around the world. Americans spread throughout the suburbs because gas prices weren't an issue, and they wanted the land and privacy a country home offered.

However, gas prices in Europe have been much higher for much longer - they've been taking commuting costs into account for years. Not only are they making home purchases closer to work, but low-gas vehicles (such as scooters) in addition to public transportation help lighten the load of high fuel prices.