I'm trying to determine the best way to figure real commuting costs. In this case, we are weighing a house in the suburbs, 24 miles from office, versus a house in the city that is within 4-5 miles and would allow for biking and public bus. Aside from the typical lifestyle differences between urban and suburban living, I'm trying to rationalize the theoretical cost savings of not having to have a second vehicle and the 24 mile each way commute versus the cost of real estate in the two locations.
Using some rough math, I'm estimating a second vehicle and it's operating costs on the commute and other additional driving the burbs will require would be at least $400-$500 monthly..does this sound right for an average car? And, if so, this represents about $150K in mortgage loan interest costs per month. Thus, is it reasonable to use this amount and logic when comparing housing options (we are looking at buying; but, could obviously be translated to rent as well). EX: A $300K house in the city is cheaper than a $250K house in the suburbs when the car costs are factored in. Make sense?
Anyone else consider this when choosing a location and does anyone see a flaw in my logic or have a better way to look at this?