It's best to live as close as you can to all the places that you need to regularly go to. Relatively more sustainable forms of transport include (roughly in descending order) walking, cycling, skating, scootering, rollerblading; electric vehicles (particularly if powered from renewable electricity); public transport; motorcycles; small, efficient cars; car sharing or renting if you don't need to use a car often; and taxiing.
Hopefully it won't be too much longer before autonomous, electric vehicles become mainstream. At that point, it will probably make less sense to own a car, and instead use such a vehicle as a taxi. This will cause less congestion, while having most of the benefits of owning and driving a car, without many of the disadvantages.
