Transit Oriented Development relies heavily on density – that is, having many buildings, homes and activities clustered close together – as a central element. Dense development also incorporates mixed land use activities with residential, retail, civic, office spaces all situated nearby for maximum pedestrian traffic flow.
Property values in areas surrounding transit hubs or stations usually increase by 5-15% due to having access to diverse transportation options nearby, however there are several key elements that must be considered for creating a successful TOD.
Increased Population
An increasing number of people prefer living near public transit, evidenced by rising property values near train stations and transportation hubs. This trend is driving new real estate investments while creating more sustainable communities.
TOD communities are defined by Renne as walkable, mixed-use neighborhoods designed to integrate high quality public transit systems. They feature single family homes, townhouses and small-lot apartment buildings among other housing types as well as shops and offices; activity centers nearby offer 24-hour service; residents don’t require private vehicles for daily trips.
TODs can also help reduce overall commuting costs. According to research by the Brookings Institution, households that had access to both bus and rail savings about $3,000 annually in annual commuting expenses compared to households without such services.
Increased Demand
TODs differ from their auto-dependent counterparts in that households in these communities own fewer cars and tend to rely more heavily on alternative modes for travel, including walking, cycling, carsharing and public transit. This reduces traffic congestion as well as environmental impacts associated with vehicular travel.
TODs (Transit-Oriented Developments) are typically higher density neighborhoods than traditional neighborhoods, consisting of multi-family housing and local commercial (such as grocery stores) in close proximity to transit stations. Their street design often promotes walking as well as multiple uses.
To maximize the benefits of TOD, it’s crucial that planning and design guidelines and processes be applied with equity in mind. Click below on one of the resources to discover more on how you can ensure equitable TOD outcomes.
Increased Real Estate Value
Compact urban development combined with quality public transit can produce many positive benefits, from increasing housing options and access to jobs to reducing congestion and pollution and stimulating local economic activity. Residents in transit-oriented neighborhoods tend to own fewer motor vehicles and drive less; instead relying on walking and public transit more for daily transportation needs than their counterparts in traditional neighborhoods.
A typical TOD neighborhood typically consists of a core area within half a mile of a station that comprises high density residential and commercial development on smaller lots, followed by two to four story apartments or townhouses on small lots, usually two- to four story. Furthermore, larger Park & Ride facilities may serve high frequency transit systems.
These communities tend to experience higher real estate values as the result of the demand from commuters and homebuyers alike, often as a result of planning departments allowing increased density or population increase, though other causes include transit easements or density bonuses.
Environmental Benefits
Transit-oriented development (TOD) is an urban planning concept designed to create sustainable communities centered on public transit. TOD typically comprises new or improved residential or commercial developments within walking distance from public transit stations, while providing amenities that encourage walking or bicycling.
TODs should feature high densities of commercial and residential development (typically 6 residents per acre for residential areas and 25 employees per acre in commercial centers), connected by streets that support walkability and agglomeration benefits, with multiple housing types that range from two-story apartments to small single family homes surrounded by active sidewalk commercial activity and featuring well-connected networks of streets for walkability and agglomeration benefits. To qualify as TODs, these areas should also feature local neighborhood commercial activity along streets and sidewalks.
TODs have been shown to lower household transportation GHG emissions by up to 36% compared to homes located far from transit, depending on other factors. But TODs don’t come without their challenges – particularly with respect to achieving equitable outcomes and engaging the local residents from day one of planning processes. To meet these hurdles, planning processes need to become more inclusive and include meaningful engagement of local residents from day one of development planning processes.