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Can Australian cities adapt to become more commuter-friendly or will the financial burden of travel force a fundamental shift in work arrangements?

Australia’s rising cost of living is squeezing household budgets, and with high fuel prices and public transport costs increasing, many Australians face the reality that the expense of commuting to work may no longer be financially sustainable.

�ճ���� showed that the average daily cost for an Australian to get to and from work is $20, totalling $5020 annually. Collectively, this translates to a national expense of $43.2 billion a year. The cost of public transportation is also increasing; Opal fares rose by 3.7 per cent in October 2023, as reported by ����

Associate Professor Evgenia Dechter from the UNSW Business School says that the complex relationship between commuting costs and salaries is primarily based on preferences and household constraints.  

“Individuals make choices based on their preferences, budgets and time constraints,” she says.

“Subject to constraints, some prioritise shorter commutes by living closer to work hubs, even if it means higher housing costs and lower quality housing. Others prioritise better living arrangements and may accept longer commutes.”

This raises the question: With rising economic pressures and commuting costs, will Australian cities transform to be more commuter-friendly, or will work arrangements undergo a fundamental shift?

The economic impact of commuting

While salaries may indirectly reflect commuting choices, A/Prof. Dechter acknowledges the growing economic pressure on workers as well as the current cost of living crisis combined with high inflation rates. 

“For many households, the current economic conditions imply tighter budget constraints, putting immense pressure on workers, which may in turn affect their commuting and employment choices,” says A/Prof. Dechter.

“Traditionally, commuting costs haven’t been directly factored into salaries, but some employers are starting to explore ways to compensate for them.

“Employers offering remote work options are a positive development in mitigating commuting costs.

“Remote, hybrid and flexible work arrangements may not only alleviate the financial burden on employees but also potentially broaden the talent pool for firms struggling to find workers,” she says.

Public transport offers a cost-effective alternative for many commuters, but A/Prof. Dechter says improving infrastructure can also help with travel times.����

“According to the , only about 12 per cent of Australians who commute to work utilise public transport, highlighting the high costs associated with public transportation and the existing limitations in infrastructure, thereby indicating potential areas for improvement,” says A/Prof. Dechter.  

“Investments in public transport infrastructure have the potential to substantially enhance both the affordability and efficiency of commuting for a considerable segment of workers.” 

City infrastructure is not designed for everyday commuting

The travel-to-work challenge is further amplified by the design of Australian cities, with urban sprawl leading to longer commutes and a need for more suitable housing options near workplaces. 

“The ugly truth of the matter is the shape of our cities is far from ideal to support sustainable and efficient commuting” says Professor Philip Oldfield, a leading expert in architecture from the Faculty of Arts, Design & Architecture at UNSW.

According to the  released in late 2023 by the Commonwealth Bank and Regional Australia Institute, this trend is reflected in a significant shift in migration patterns. The report highlights a 12.6 per cent increase in the population moving from capital cities to regional areas compared to pre-pandemic figures.

The rising cost of living may not be the only reason why it’s harder for Australians to travel to work. Prof. Oldfield says that cities are expanding outwards with residential densities decreasing.����

“It’s often cheaper and easier to build housing on the edge of cities rather than trying to ‘infill’ gaps in the city. In Sydney, 21 per cent of homes built in Greater Sydney were on the city edge across the last decade. We call this urban sprawl, and it’s apparent in virtually all cities worldwide,” says Prof. Oldfield.