Gas Prices Squeeze Sprawling Sunbelt Cities More Than Dense Urban Areas

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A new analysis shows that while gas prices have risen sharply across the US due to the Iran war, the economic impact is more severe in sprawling Sunbelt cities like Nashville and Indianapolis compared to denser urban areas like New York and San Francisco. Residents of spread-out metro regions tend to drive longer distances, leading to higher monthly fuel costs despite smaller price increases per gallon.

Why it matters

This data highlights how urban design and transportation infrastructure can exacerbate the economic burden of rising gas prices, with car-dependent communities bearing a disproportionate share of the pain. As policymakers consider ways to address the impacts of high fuel costs, this analysis underscores the need to invest in public transit, walkable neighborhoods, and other alternatives to single-occupancy vehicle travel.

The details

The analysis, based on gas price data from GasBuddy and driving mileage figures from the Federal Highway Administration, found that while Chicago and Los Angeles saw larger per-gallon price hikes, residents of cities like Nashville, Raleigh, Indianapolis, Orlando, and Louisville faced the steepest increases in monthly driving costs - up to $70 more per month. This is because these sprawling Sunbelt metros have lower population densities and fewer public transit options, forcing residents to drive longer distances for work, errands, and other daily needs.

• Gas prices have risen sharply across the US since the start of the Iran war in March 2026.
• The analysis looked at gas price and driving data through April 9, 2026.

What they’re saying

What’s next

Policymakers in sprawling Sunbelt cities will likely need to consider long-term investments in public transit, walkable development, and other alternatives to car-centric infrastructure in order to help residents weather future spikes in gas prices.