TODs bring housing, jobs and community spaces closer together around transit in order to increase transit ridership while simultaneously decreasing automobile traffic congestion, pollution and noise pollution while supporting local economic activities.
Office workers living within one mile of a rail transit station experience transit commute shares that are approximately 19% greater than in non-TOD areas (Cervero et al 2004). TOD also reduces vehicle ownership rates as well as associated transportation costs and externalities.
Benefits of TOD
TODs offer numerous advantages to residents, businesses and cities alike. TODs create opportunities to build communities with diverse uses that can stimulate local economies and boost sales tax revenues while simultaneously protecting environmental sustainability by limiting sprawl, reducing carbon dioxide emissions and traffic congestion and conserving natural resources.
TOD seeks to incentivize people to live and work near transit stations, with housing, shops, restaurants and offices all located within walking distance of transit stations. This will reduce traffic congestion and pollution as well as save money on transportation costs; something which may especially benefit those on lower incomes.
TOD can have its downsides; it can result in gentrification and displacement of low-income and marginalized communities, as well as put strain on existing infrastructure such as transportation networks and water systems, necessitating costly upgrades. Furthermore, TOD might lead to cultural homogenization as well as less affordable housing options – and may disproportionately benefit wealthier households; the best way to mitigate against its risks is involving residents in the planning process and ensure inclusion.
Creating Places
TOD can contribute significantly to health and livability by decreasing automobile use. Studies have demonstrated that physical activity increases near transit stations while vehicle ownership, trip frequency and total travel expenditures decrease with greater residential densities and proximity to public transit (Litman 2008).
TOD requires high-quality pedestrian and bicycle facilities that serve as community gathering points and focal points for social events, along with housing types ranging from dense apartment and office skyscrapers to single family homes on smaller lots. Projects utilizing TOD must also reduce land dedicated to parking by encouraging carsharing, ridesourcing, ridesharing services or any other transportation demand management strategies.
TOD initiatives must take into account the needs of low and moderate-income residents by offering affordable housing, services, and jobs for these populations. Otherwise, TOD investments may fail to attract core riders – those most often and regularly utilizing public transit systems.
Creating Communities
TOD (Transit-Oriented Development) refers to creating communities with high degrees of walkability and lower automobile reliance. TOD neighborhoods typically consist of an area centered by mixed use commercial and residential development (such as towncenter or downtown) surrounded by medium density two to four story apartments, townhouses and small lot single family housing served by transit.
Dense and compact development reduces land requirements while simultaneously expanding access to amenities within walking distance of homes and jobs, providing non-drivers with greater options, and making it easier for families with young children to live near schools and work. Other factors that influence TOD areas’ size include lowering or expanding commuting pass prices through neighborhood UPass programs that increase ridership while decreasing commuter vehicles; encouraging carsharing to eliminate or reduce vehicle ownership/parking costs, as well as improving streets, sidewalks, paths, bikeways, as well as public spaces providing first and last mile connections through improving streets/sidewalks/paths/bikeways/public spaces/public spaces/transportation/connecting areas between transit stations/service areas/providing first/last mile connections through improving streets/sidewalks/paths/pathways/pathways/pathways/bikeways/bikeways/public spaces connecting first/last mile connections by improving streets/sidewalk/bikeways/bikeways/bikeways/bikeways/pathways/pathways/ bikeways/ bikeways/ bikeways/ bikeways/ bikeways or bikeway connections to transit through improvements to streets/sidewalks/ paths/ bikeways/ bikeways/bikeways/bikeways or improving bicycle routes/bikeways/bikeways or providing first/last mile connections to transit via improvements to streets/sidewalks/ paths/bikeways/ bikeways or bikeways/bikeways or improving streets/bikeways/ bikeways or by improving streets/pathways/ bikeways or public spaces for instance
Creating Jobs
TOD offers a viable alternative to sprawling development that wastes both land and fuel by drawing business to vibrant neighborhoods with good schools, shopping and public transit access, all while encouraging more people to use such services thereby decreasing oil imports. Furthermore, studies show that residents in TOD communities own fewer vehicles and drive fewer annual miles compared with residents living in automobile-dependent neighborhoods.
TODs tend to enjoy higher property values due to having access to multiple transportation options nearby and reduced automobile and parking costs (CNT 2013). Employment clusters near stations also tend to foster local economic development by bringing businesses, jobs and services closer to residents’ households.
TOD requires equity and inclusion for maximum effectiveness. Too often new transit investments are located in areas with high property values and rapid development that lead to unaffordable housing costs that displace families and counter equity goals. Read more here about equitable TOD.

