Study: Taking public transit in San Francisco saves renters money

Taking public transit can provide a big annual savings, according to a new study by Point2Homes.com.  

The study looked at the 30 largest U.S. cities to determine how much money commuters (particularly renters) can save by switching from driving to using public transportation. San Francisco stood out in terms of potential savings, with the analysis adding another reason to leave the car at home: the time saved by driving instead of taking the bus isn’t significant enough to outweigh the financial benefits.

While most commuters nationwide rely on cars to get to work, things look a bit different in San Francisco. Less than 48% of commuters drive to work, fewer than in other major cities like Seattle, WA (62%), Chicago, IL (65%), or car-dependent California hubs like Los Angeles and San Diego.

In San Francisco, the cost of commuting is more than just a matter of time — it’s a matter of thousands of dollars each year. And, as one of the most expensive cities in the U.S., its public transportation system can be a financial lifeline, especially for renters.

Once fuel, insurance, maintenance, and parking is factored in, the average cost of commuting by car in San Francisco exceeds $11,100 annually. Public transit, on the other hand, costs less than $1,000 annually, leaving nearly $10,000 in potential savings for those who make the switch.

For those renting in San Francisco, giving up the car goes beyond reducing emissions — it’s about regaining control over their budget. The average renter household in San Francisco earns about $9,600 per month and could save the equivalent of more than one month’s income each year by opting for public transit.

Commuting by car eats up nearly 9% of a renter’s salary. By comparison, owner households have a median monthly income of around $15,200, making the cost of a car commute equivalent to about 5.6% of their annual earnings.

San Francisco is one of the few big cities where driving a car can really increase commute costs without providing a huge time advantage in return.

While commuting by car is usually faster, car ownership can come at a sky-high premium here. Yet, despite the financial incentive of public transit, many still choose to drive because of time, the report notes.

San Francisco drivers do enjoy shorter commute times than those who rely on public transit, with under 25 minutes per day saved. Over a year, that adds up to roughly 108 hours, or just over four days. While not insignificant, the minutes saved are modest compared to the national average of over half an hour. It’s also less than the time saved in car-centric cities like Las Vegas or San Jose, where commuters can save over 50 minutes a day by driving instead of taking public transport.

For renters facing tight budgets, saving thousands of dollars a year on commuting could mean the difference between scraping by and gaining some financial breathing room to put toward rent, loans, or more savings, according to the report.