Dylan Rogers, a 29-year-old Jeweler from South Carolina, has become frustrated with the cost of living in New York City. As a commuter who travels over 10 miles from Brooklyn to Manhattan and back on a regular basis, Dylan spends several hundred dollars a year on the subway alone — more than most people living in other parts of the country pay for gas.
So, when the government agency that runs the city’s subways and buses — The MTA — proposed raising the price of a single ride from $2.00 to $2.50 in March 2009, Dylan considered moving elsewhere.
“I understand they need to make money to keep the trains moving,” he says. “But it really affects middle-class workers like myself. We’re what drives New York.”
The 44-year-old Metropolitan Transportation Authority announced its proposal as the best way to cover a $1.2 billion deficit from rising maintenance costs. But after hearing the complaints of commuters throughout the city, the agency scaled the fare hike down from $2.50 to $2.25, which went into effect on June 28, 2009.
In New York City, 7.4 million people use public transportation on an average weekday. That 12.5% increase in the price of a single subway or bus ride will still cost the majority of commuters at least $100 dollars more each year.
“On average I take about 10 round trips a week on the subway,” says Grady Walker, a 30-year-old musician who travels all around the city for rehearsals and gigs. At that rate, the new fare will cost him an additional $2.50 a week.
And with other costs of living going up at the same time, many subway riders like Dylan and Grady have begun to weigh the price of public transportation against the alternatives: walking, driving, spending more time at home, and even relocating elsewhere.
“If the price went up anymore, I’d probably want to leave New York for a little while,” says 19-year-old Amanda Tooker, a Fordham University student living in the Bronx.
Every New Yorker has a threshold when it comes to spending and saving. The price elasticity of demand for mass transit is roughly 0.4. That means due to the 12.5% fare increase, demand for public transportation in the city will likely drop by 5%.
“For a lot of us, the cost of a subway ride is already too expensive,” says Dylan. “If I do stay here, I’ll have to ride my bike as much as I can to save money. Otherwise, I’ll probably cut back on food. No steaks for me.”
Story by Damian Ghigliotty
Video by James Fair and Damian Ghigliotty
View the analysis video below for a breakdown of Elasticity of Demand by Mike Mandel
