Renters Could Save by Choosing Public Transit

Today, about 69% of Americans drive to and from work daily, spending around $8,000 per year on car insurance, maintenance costs and annual fuel. According to Point2Homes, this total represents 15% of renters’ annual income, compared to only 8% of homeowners’ income. 

Using public transit instead of a personal car could save renters an average of $28.40 per day, equal to $597.10 per month and $7,165 per year. 

In 27 of the 30 cities Point2Homes analyzed, renters would save more than the equivalent of a month’s salary if they ditched their car in favor of public transportation. And in three cities, yearly savings would exceed the equivalent of two months’ salary. 

One of those cities is Philadelphia, where the average annual car commute costs $9,135, compared to the average annual cost of public transportation at only $1,152, for a total savings of $7,983.  

On the other hand, in Pittsburgh, the average annual commute expenses by car total $7,455, while taking public transportation costs $1,170 annually. This could save around $6,285 per year, equal to more than a month’s income for the average renter household.  

However, for those valuing their time, switching from car to bus (or other public transit) might not be the best move. Nationally, car commuting saves about 32.8 minutes per day (5.7 days per year). In Philly, car commuters save about 25 minutes per day, and in Pittsburgh, they save about 19 minutes.