Car ownership is growing in the US – here’s why

There has been a significant increase in the number of cars in the United States over the past years. Car ownership is not low as compared to international standards. Sales of volumes of cars have been skyrocketing, but the nation is far from taking over China as the largest automobile market. Approximately 76 in 100 people own vehicles. Ownership rates for cars and trucks have reached the highest levels since 2009. The era of car ownership is not over. Does it even make sense to have a car when you can use Uber or Lyft? In spite of the glowing promises of shared rides and e-bikes, people prefer investing in cars. The old American dream of owning a car is still alive. Please continue reading to find out why America’s car ownership rate is higher than ever.

Boom in population growth

In terms of population, America is the third-largest country in the world, right after China and India. The population is 327,16 million. It has been steadily growing for decades, yet not all parts of the country are benefiting equally. The nation has added roughly 17 million people since the last major census in 2010. Domestic migration – in other words, moving from one state to the other – accounts for the largest fluctuations in the population.

The increase in the number of motorized vehicles is closely connected to the increase in the number of households. In Baltimore, for instance, citizens are auto-dependent. Households rely on motorcars to get from point A to point B. More often than not, they accommodate more than one person and tend to have multiples cars. People are not willing to share a ride, so they have two cars instead of one. The choice is strictly personal. Accelerating population growth will lead to the doubling of the number of cars, as demand will increase.

Vehicle affordability has taken center stage

50 years ago, there were not as many vehicles on the road as they are at present. The affordability of cars has changed with time. To be more precise, vehicles are more affordable than they used to be in the early years of the auto industry when they were practically luxury items. It is true that the cost of new cars is higher, but good deals can be found. Everything is automated, work being carried out in plants by robots. Bolts and screws are no longer put by hand. Innovative technology has shortened the production process and helped cut down expenses in terms of human labor.

According to the expert Chris Riley from Auto Wise, electric vehicles will become reasonably priced. As a matter of fact, they will be inexpensive compared to regular cars due to the falling price of lithium-ion batteries. A couple of years ago, lithium-ion batteries made up almost half of the overall price of a motorcar. For the time being, they account for only 33% of the cost. The point is that batteries are becoming cheaper and smaller and experts are put in the situation of revising their projections for electric vehicles for the following year.

Mass motorization is enabled by assembly line production, which ultimately brought down costs. Higher median family incomes allow families to acquire vehicles, who have a higher purchasing power relative to the supply and prices of goods made available. The commercialization of new transportation technologies has led the world into the transit era. Taking into consideration how low motor fuel taxes are compared to highly motorized countries, car ownership does not even need to be incentivized.

Interestingly, household vehicle ownership has strengthened in areas where Uber and Lyft are heavily used. Examples include urban areas like New York, San Francisco, and Miami. Uber and Lyft keep the prices low for price-sensitive customers. By connecting drivers and customers, the services are able to determine the prices and take care of customers. However, car-sharing/ride-hailing services they have not had a significant impact on car ownership.

Having a car is linked to greater success and opportunity

For low-income families, owning a car means greater success and opportunity, according to the study released by Evelyn Blumenberg from the University of California. How so? For starters, families with access to cars are more likely to find and hold a job. Not all jobs require a driver’s license, yet having one is a common requirement for the types of jobs that can help individuals escape poverty. This means jobs in construction, security, manufacturing, and union jobs. The point is that employment outcomes are positive. Households with vehicles are less likely to return to poverty neighborhoods.

Insufficient attention is paid to assessing the factors that affect the degree of satisfaction that community residents have with the neighborhoods where they reside. Automobiles associated with enhanced neighborhood satisfaction. It has something to do with the perceived physical environment. What is important to keep in mind is that transportation is important in helping households locate housing in more desirable locations.

Final considerations

Americans drive almost 70% of the time. Citizens from other nations, such as Europe, make their trips by bike, foot or public transportation. For urban consumers, vehicle ownership matters more than access to mobility. So, the fact that private ownership dominates the automotive landscape does not even come as a surprise. Attention should be paid to the fact that there are still car-free households in the United States.

Approximately 10% of people are willing to give up their cars in favor of ride-sharing services and outdated private transportation. They do not have an automobile available. These individuals view car ownership as trouble and find it more convenient not to have a car. There is no way of knowing how vehicle ownership will look in the future, but one thing is certain, the number of passenger cars on American roads will not drop significantly. Increased car ownership is worrisome, as motorcars produce high amounts of emissions. Nevertheless, automobile designs are to improve and there will not be major problems.