In much of the United States, public transit is weak or does not exist, and a car is a necessity, not a luxury. People who pick a city without thinking about this are often surprised by the cost and the dependence.
The numbers behind car dependence
According to a 2024 Pew Research Center analysis, about 90% of American adults drive. Only 4% of workers usually take public transportation to work, and that figure is high only in a few places such as New York City, where nearly half of workers use transit. Outside a handful of big cities with strong subway systems, the normal way to get to the grocery store, the doctor, the bank and work is by car.
This varies a lot from city to city and even from neighborhood to neighborhood. The same city can have bus lines in one area and almost none in another. So the safest approach is to check transit in the exact area where you want to live, not just the city.
What owning a car costs
AAA, the American automobile association, calculated that owning a new car cost an average of $11,577 a year in 2025, about $965 a month, for a driver who covers 15,000 miles a year. Roughly $4,334 a year of that is depreciation and $1,131 is financing cost. Gas, insurance and maintenance are also part of the bill.
That is the cost of a new car. A used car usually costs much less, but insurance, gas and maintenance still apply. When you plan your budget, add everything up, not just the monthly payment.
Insurance is required
Almost every state requires liability insurance. In Texas, for example, the minimum is 30/60/25: $30,000 per injured person, $60,000 per accident for all injuries and $25,000 for property damage. Insurance is required before you can register a car, and driving without it brings fines and other penalties. If you cause an accident while uninsured, you can be personally liable for the damage. Get quotes before you buy a car, because prices vary widely with age, record and location.
Driver license
Rules are set by each state. In Texas, a valid license from another state or country can be used for up to 90 days after you move, and after that you need a Texas license, which includes a vision test, a written test and a driving test. For F-1 students, Texas asks for a passport, visa, I-20 and I-94 as proof of lawful presence, plus documents that prove your address. Always check the current list on your state's motor vehicle agency website.
How to choose where to live
- Look at the city's transit map and schedules, and check whether a line passes near your home and your work.
- Ask how long it takes to reach the supermarket, the doctor and work without a car.
- Consider living close to work, even if rent is a bit higher, to reduce or avoid car costs.
- Avoid financing an expensive car right at the start. The credit history you do not have yet can make interest rates very high.
- Be wary of "easy financing" offers for people with no credit. Read the contract and compare rates.