Transportation costs make some dream homes costly nightmares

Found your dream home out in the suburbs at a fantastic price? Well, it may not be as cheap as you think. According to a new study released yesterday by the U.S. Department of Housing and Urban Development, when you factor in the costs of transportation, only 1/3 of America’s neighborhoods are actually considered affordable. (You can look up your own neighborhood in the just-released Housing + Transportation Affordability Index.)

Andrea Bernstein, director of The Takeaway’s Transportation Nation project, talked to Deputy HUD Secretary Ronald Sims about the problems and solutions for homeowners out there who thought they found their dream home at a great deal.

WEB ONLY: Hear Andrea’s uncut interview with Ron Sims:

* On why transportation costs should be added to housing costs to really figure out whether your house is affordable.

* Why it’s not the banks fault… and why communities will shrink in America’s future?

* Why bank regulation isn’t the answer?and what is?.