Skip to Content
Streetsblog USA home
Log In
Streetsblog.net

The Granddaddy of Sprawl Subsidies, Illustrated

11:20 AM EDT on May 22, 2013

Despite the ruinous housing crisis just a few years ago, the federal government still keeps the suburban sprawl machine humming.

About 85 percent of federal subsidies for housing flow to single family homes, according to a recent report from Smart Growth America, though only about 65 percent of Americans are homeowners and the majority of renters live in multi-family housing. The ultimate sprawl subsidy just might be the mortgage interest deduction. Not only is this baby completely regressive -- the vast majority of subsidies flow to households with incomes greater than $200,000 -- as you can see in the above map, this money tends to flow to areas where everyone is dependent on a car.

Network blog West North writes:

See those donut holes? Inner-city areas with low rates of homeownership, low incomes (and thus fewer residents who itemize deductions), and relatively lower property values are receiving far less of America’s fattest housing subsidy — the mortgage-interest personal income tax deduction (see previous discussion) — than their better-off suburbs. The sprawl subsidies continue apace.

The bigger picture is that this is a subsidy that overwhelmingly benefits wealthy people who have expensive houses, and big mortgages to match — and thus benefits “coastal elites” more.

Elsewhere on the Network today: Human Transit reports that Google Maps is planning some big improvements to its transit directions feature. Mobilizing the Region reports that New Jersey is the newest state to consider reducing speed limits to 20 miles per hour in residential areas. And Better Institutions comments on a unorthodox new plan to shore up the federal infrastructure bank.

Stay in touch

Sign up for our free newsletter

More from Streetsblog USA

To Help Save the Planet, Take the ‘Week Without Driving’ Challenge

Sierra Club President Ramón Cruz is urging Americans to give up driving for seven days — and support policies to make it optional for everyone.

September 29, 2023

Friday’s Headlines Are Charged Up

Expect a lot fewer ordinary gas stations and a few more Buc-ee's in your area as the electric vehicle transition continues.

September 29, 2023

Talking Headways Podcast: Beyond Greenways

This week we’re joined by Bob Searns to talk about his new book and grand ideas for walking trails that circle whole regions and more local routes that make up a new mode of green infrastructure in cities.

September 28, 2023

Thursday’s Headlines Are Inside Out

Cars and trucks are getting safer for drivers and passengers, but people outside the vehicles are increasingly in danger.

September 28, 2023

New Federal Committee Will Push for Transportation Equity By Helping DOT Reckon With Its Past

“No one alive today is necessarily responsible for the origins of the [transportation] inequities that we inherited. But everybody who was alive today and in a position of responsibility, is accountable for what we do about it. That's why we're here.” 

September 28, 2023
See all posts