Figure 2 shows that the Bay Area has the highest combined annual average housing and transportation cost in the nation. Together, transportation and housing costs for all income levels averages $36,206 per household in the Bay Area, on par with Washington, D.C., and 19% higher than the New York City region. The average household in the Bay Area spends $13,350 in transportation costs annually. However, neighborhoods offering more transportation options, shorter commutes, and services and shopping within walking or biking distance have significantly lower transportation costs. These areas are generally in the region’s most dense urban centers, ringing the Bay, and at major transportation nodes.

Figure 2. The Bay Area Has One of the Highest Combined Housing and Transportation Costs

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The average low-income Bay Area household spends around 24% of its income on transportation, compared with the U.S. average of 18%. The cost of owning a car comprises the largest share of this annual transportation cost, averaging an estimated $6,500 for a small car. Low-income households in the Bay Area are five times more likely not to own a car compared to higher income households. When those families live in neighborhoods well-connected by transit to employment centers, this may be a choice they make to save money. However, the fact that 84% of low-income Bay Area households do own a car indicates that residents in many communities may choose to have a car, despite the costs. Low-income households that do own a car may not be able to afford to drive it regularly, or may cut other essential expenses in order to pay for vehicle costs. The size of the region and sprawling location of many jobs makes transit dependence highly challenging. Brief Two in this series explores these geographic disconnects in greater detail.

As households add trips to drop kids off at school, to access services, take classes, or hold down multiple jobs – transportation costs increase and transit becomes even less viable as a means to get around. The commute trip only comprises one in every five trips the average person makes, meaning those other trips quickly contribute to the expense of transportation.

Figure 3. Low-Income Workers are More Likely to Use Transit or Walk to Work

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Figure 3 shows that low-income workers are more likely than other workers to take transit or walk to work. Nearly 18% of workers earning less than $25,000 a year walk or take transit, compared with 10% to 12% of workers in higher income categories.

The cost of transit can be a heavy burden for low-income, transit-dependent households, although monthly passes can sometimes help reduce costs. With or without passes, individuals often pay multiple fares for a single trip as they make transfers among lines or change modes or transit agencies.

Low-income, transit-dependent workers face many other access and mobility challenges, such as frequency of service, hours of transit operation, and location of homes, work, and services. These are discussed in Brief Two.

There is a mismatch in the Bay Area between the skills needed for available jobs and the skills training that unemployed workers receive. This mismatch extends beyond skills-building and formal education. Employers want to hire workers with experience, presenting a significant barrier to entry for workers with only classroom learning. Community college and other training providers acknowledge the need for better “pipeline” programs that help feed formally trained students into positions by offering the opportunities to gain this valuable on the job training.

Workforce training is vital for low-income workers hoping to gain career advancement or to obtain a quality job. The services workforce training providers offer are fundamental to the development of soon-to-be employed workers, but accessing and maximizing the value of these services is challenging. For example, of all the community college campuses located throughout the Bay Area (see Figure 4 on page 10), only 35% are located near high-frequency transit service.

Job seekers with children need access to reliable and affordable child care in order to seek and maintain employment. The high cost of child care is a burden for families at many income levels. For many low-wage workers, the cost of child care is often a significant barrier to employment.

Accessing child care is also a particular challenge for workers who are transit-reliant. Dropping a child off at child care or school adds time and expense to morning and evening commute trips, which can be complicated if child care is not on the way to work. Less than half of all child care centers are located near transit in the Bay Area, and only 16% of these facilities are near rail. Only half of BART stations have a licensed child care center within walking distance.

Lack of proficiency in English is a significant barrier to employment, particularly for immigrant workers. Some facilities, such as adult education centers, provide low-cost English proficiency courses in the evenings. However, without a reliable, cost-effective way to access classes to improve English skills when transit service hours are often limited,there are limited job options for job-seekers who are not English-proficient.

For the following barriers, transportation does not play a role

Many currently employed low-income workers face barriers to economic opportunity within their current positions and do not receive living wages nor dignified work conditions. In some instances, employers take advantage of low-income employees by not paying wages. This can especially be true for the region’s undocumented population (currently estimated to be 8%). Undocumented workers are not fully protected by labor laws and are susceptible to abuses such as unpaid wages. Even those workers protected by law are often unaware of their rights, and need access to information, legal aid, and affordable or pro-bono lawyers to navigate and understand labor laws.

Workers with past felony records do not pass initial screenings within job applications that ask job seekers to list previous criminal records. What is generally a box to be checked on a form can close the door to employment opportunities for many potential workers who are not given the opportunity to explain themselves, or show that their record is not a reflection of their ability to do the job. This form of discrimination hits the African-American Community the hardest since an estimated one of out every three young African-American men are incarcerated at some point in their lives.