Do you think higher gas prices will affect the real estate market?

With gas prices at an all time high, and anticipating that it will go even higher by tomorrow, what is your tipping point for high gas prices before you will consider moving closer to work? At what point will you consider driving less, and walk or get on your bike as much as possible?

Apart from inflation, even though these price hikes are just part of a cycle sparked by refiners upping their prices and commodities speculative trading, these prices can last till the end of the month. They are already driving higher bike sales. Higher gas prices also comes with higher gas tax.

The average commute time for gridlock Toronto is 80mins round trip according to one of Scorecard's case study. High gas prices, traffic congestion, inflation and rising energy cost will surely spark a new trend in housing demand and change the shape of surrounding infrastructure in the urban as well as suburban landscape. Researchers at the University of Montreal analyzed a link between urban sprawl and high gas prices, and found from 12 major Canadian cities that:

On average, a 1% increase in gas prices has caused: i) a .32% increase in the population living in the inner city and ii) a 1.28% decrease in low-density housing units.

 Perhaps the city outskirts will increasingly become less desirable, which will drive demand in the inner city.

 Do you think higher gas prices will affect the real estate market?