Quote:
Originally Posted by Djeffery
How low does the fare have to be to be economical to commute? The very cheapest, far in advance, limited seats, no flexibility fares on Via are 30-40 bucks each way plus tax. Is that a reasonable fare for HSR, or would it be higher? Is $500 or more per week too much for thousands of people a day to pay to commute to downtown Toronto?
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For average worker? No. For professionals making more than >$120k, the cost is justified, simply by the lower cost of housing in London.
And this is exactly what you see in many places with HSR elsewhere. Upper middle class professionals move to exurbs 100-200 km away and commute by HSR. They pay more for travel. But less for housing. On most HSR systems, commuters make up a substantial, if not majority, of ridership.
Take VIA's current pricing. Works out to $300 per week for a commuter. Or roughly $1200 per month. That's about what the mortgage payment is on $250k at 3% amortized for 25 years. So as long as the same house costs $250k less in London than Toronto, it could be economically justified.
The differences in average home prices between London and the GTA is about half a million dollars though. So any HSR service could actually get away with charging even more than VIA does today and still generate a ton of ridership, thank to the cut in travel times.
Now, a lot of those professionals who do commute that far, don't actually commute daily, so the math works out even better. If you get to stay home even 1-2x per week, London starts looking like a fantastic bargain.
Launch HSR and within half a decade you'll see London home price stabilize at about $300k less than Toronto, as a flood of Torontonian professionals move down and London's housing market gets more tied to the GTA, with a differential for the commuting costs and time.