Housing Search: Price vs Commute Time
Scarcity
There are limited number of houses in each housing area. A lot of those houses may already be occupied, increasing scarcity further.
Housing districts are limited as it relies on space and construction capabilities.
Choice
Economic agents who are searching for houses have different options, based on location, price etc. This leads to opportunity cost when they choose a house.
Efficiency
The further away from work, the more time you lose not working, and therefore more money potentially lost.
There is also the added cost of travelling to work.
Equity
If living in a family where people work or go to school in different areas, a location has to be selected where the same relative ease of travel exists for all parties.
People may not be able to afford to live closer to their jobs.
Change
Job changes can cause a change in location.
Rising housing prices can also cause change in preferred or affordable locations.
Increased salary/wages allows for better accommodations to be afforded.
Interdependence
Intervention
Govt intervention in the form of price limiting and subsidies can help people afford housing which would've been outside their budget, allowing them to be closer to their place of work, increasing efficiency as well.
Sustainability
The farther away you are, the more fossil fuels will be used if you are utilising a car.
Economic Well being
The further away from the city the housing is, the higher value for money exists, providing a higher quality of housing.
A few people could come together and share the cost of a house that is close to both their work places.