After housing, transportation costs, are the second-biggest budget item for most families in the United States. In 2012, households that fall in the lowest fifth in household incomes spend 56% of their income on housing and transportation whereas households that fall in the highest fifth spend 46% of their income. In addition, driving may not be an option for everyone. According to AAA, the average annual cost of owning a car is $10,183. Thirty-three percent of low-income African Americans, 25 percent of low-income Latinos, and 12.1 percent of low-income Caucasians lack automobile access. The Victoria Transport Policy Institute argues that unaffordable transportation can reduce economic productivity. Access to adequate and affordable transportation provides access to schools and jobs, increasing productivity and the opportunity for economic mobility.
