Abstract

In many U.S. metropolitan areas, housing costs have
skyrocketed in recent years relative to average incomes. This
pattern is certainly the case in California, where more than
half (52%) of renters are cost burdened — defined as having
housing costs of more than 30% of household income —
compared to 46% of U.S. renters. A worsening shortage of
affordable housing may push households away from job-
rich cities and expensive neighborhoods into outlying areas,
where housing is cheaper but jobs are more distant. Median
commute distances in California have in fact lengthened in
recent years, growing from 12.5 miles in 2002 to 14.2 miles
in 2015. Among other consequences, pre-pandemic transit
ridership in some areas of the state fell in part because
transit is less competitive for these lengthening trips.
Jobs-housing balance — measured as the number of
jobs relative to the number of workers in an area — may
influence residential location. Therefore, improvements in
the proximity of workers to jobs can contribute to shorter
commutes, less vehicle travel and, potentially, greater use
of modes other than driving. Low-income households may
realize additional benefits from jobs-housing balance, since
some studies show a positive relationship between job
access and the likelihood of employment. While not the only
or, perhaps, the principal determinant of these outcomes,
jobs-housing balance can have positive effects by better
enabling some workers to move to job-rich neighborhoods,
should they so choose.
We used data from the Longitudinal Employer-Household
Dynamics Origin-Destination Employment Statistics to
examine whether California cities have become more or less
“self-contained” over time with respect to the location of
employed residents relative to their jobs (See Figure 1). The
analysis specifically focuses on the role of housing costs and
supply in explaining this trend.