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Behavioral Economics on Bigger House vs. Shorter Commute

When buying a house choose the least expensive house in a good neighborhood. If commute time is taking into account, Jonathan Ping on his My Money Blog suggests that going for the shorter commute over the bigger house is a better decision when given a choice. Alex Tabarrok of Marginal Revolution also agrees: “Behavioral economics tells us that we quickly get used to big houses but we never get used to commuting. So when you have a choice, go for the smaller house closer to work.” (mymoneyblog.com)

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