TOD (Transit-Oriented Development) is a carefully planned mix of land uses near public transit that promotes sustainable lifestyles. TOD features include compact mixed-use development that is pedestrian friendly with reduced parking requirements.
Communities benefit from TOD by increasing its economic sustainability, creating new jobs and housing units, improving services access, and increasing property values. This article will detail these advantages of TOD implementation successfully.
1. Concentration of Jobs and Housing Around Transit Stations
Attracting residents via compact, pedestrian-oriented communities centered on high quality transit systems is one of the keys to making cities more livable and decreasing reliance on private cars. These so-called transit villages feature dense mixed-use areas surrounded by lower density development that provide easy access to jobs, schools, services and amenities.
Mayor Bloomberg’s PlaNYC 2030 initiative championed transit-oriented development (TOD), encouraging new housing to be located near subways and buses for easy accessibility. However, current budget cuts to Metropolitan Transportation Authority service has cut service in many of these growth zones that were designated under TOD as well as local zoning that continues to hinder inclusive development.
TODO helps communities overcome such hurdles through providing low interest loans and gap financing for higher density affordable housing developments located within a quarter mile of a transit station. In addition, TODO encourages state agencies to work together on aligning housing with transportation planning as well as streamlining land use-related procedures.
2. High-Quality Public Spaces
TOD communities often boast high-quality public spaces like parks and plazas that attract local businesses and residents, decreasing car use while creating an engaging community atmosphere.
TOD promotes “activity nodes” around transit stations where residents can shop or spend time with family and friends, making these places safe for pedestrians as well as people traveling without cars.
Communities must implement equitable transit-oriented development processes to ensure all residents benefit equally from these developments, using tools like charrettes, public meetings and other engagement techniques for engaging local residents in the planning process. Furthermore, affordable housing requirements or policies can be integrated into TOD in order to safeguard low-income people against displacement due to higher property values or new businesses; to do this requires close cooperation among developers, governments and community-based organizations.
3. Increasing Property Values Around Transit Stations
Developers, investors and commercial tenants with experience know that public transit access increases property value. While the price premium varies based on property type and location, lifestyle preferences, demographic shifts, sustainability considerations and shifting lifestyle preferences have driven increased demand. Even older systems such as buses or commuter rail are seen more favourably than cars generating significant demand and value in nearby properties.
Transit access has an increasing impact on property values as density and quality of development surrounding a station increase, particularly with respect to high-performing transit stations that offer great connectivity to their network and boast strong ridership levels.
Research confirms the hypothesis that transit-oriented development (TOD) generates a steady, predictable revenue stream that can offset upfront costs associated with new public infrastructure projects, like transit lines. This concept is known as value capture, and could provide another path to financing transit infrastructure by tapping the private market to cover part of its costs.
4. Increased Transit Ridership
Transit-oriented development (TOD) creates walkable neighborhoods located within walking distance of transit stations that encourage active mobility and provide healthier living environments that have many health advantages. TOD also reduces negative impacts from long commutes while creating opportunities for more active lifestyles with affordable access to jobs, services and leisure activities.
Transit agencies have many internal factors under their control to support increases in ridership. This includes expanding service frequency and coverage (though be wary as there can be diminishing returns as service coverage expands), creating convenient station locations, offering feeder services between neighborhoods and transit stops, as well as creating fare policies that reduce barriers such as free transfers or universal fare coverage programs for low-income residents.
Neog and Brown 2022 found that successful transit agencies prioritized students as an audience for ridership-building interventions, offering extra student bus lines as well as reduced fares to increase ridership and build ridership.