How Rising Gas Prices Transfer Over to Decreased Housing Development

A recent study by the Federal Reserve Board in Washington, D.C. claims their is a direct inverse correlation between gasoline prices and house construction development.
The study, The Effect of Gasoline Prices on Household Location, found that a 10 percent increase in gas prices leads to a 10 percent decrease in construction after 4 years in locations with a long average commute relative to locations closer to jobs. So while the supply for houses in the suburbs may increase - the demand remains lacking from capitalizing in house prices. With national gas prices ranging anywhere from $3.33 to $4.11 per gallon - a decrease in mortgages may also be at play.