TOD creates vibrant neighborhoods integrated with public transit that allow for denser development with more housing in less space, helping reduce dependence on cars, lower congestion and pollution levels, as well as provide easier access to jobs and recreation opportunities.
TOD changes require collaboration among government agencies, city planning departments, developers and residents. Reworking zoning regulations may also be required.
Increased Population
TOD encourages compact city development, which reduces dependence on automobiles and the need for lengthy commutes, thus decreasing pollution, congestion and traffic jams while creating a safer, more efficient urban environment.
TOD neighborhoods typically feature both residential and commercial properties located within walking distance of a transit hub, enabling more housing units to be constructed in smaller spaces while increasing accessibility and encouraging use of public transport.
Low-income households spend an outsized proportion of their income on transportation costs, making accessing public transit an integral component of economic success. TODs allow these households to save on gas and parking expenses, freeing up income for other necessities like food and education.
TODs offer many advantages to businesses that rely on foot traffic, such as retail and service businesses. The higher footfall will lead to increased property values as more buyers and tenants flock into these areas.
Better Transportation
TOD (Town of Design) refers to an approach used to develop vibrant centers of activity that encourage transit use. You’ll find TOD communities such as New York’s historic streetcar and rail neighborhoods, suburban towns that grew around their train stations or new TOD communities constructed alongside Hartford’s bus rapid transit (BRT).
TOD development typically entails the construction of a high-density area within walking distance from a public transportation node, including residential, office, retail and cultural institutions. Transport options like buses, train stations and ferries usually serve this node.
TOD properties have become an increasing trend as developers, city planners, and real estate investors look for ways to revitalize urban areas with increased access to public transport. Property appraisers will need a solid grasp on all the unique challenges and opportunities associated with TOD projects, which Valbridge Property Advisors is here to support by offering reliable appraisals for TOD properties.
Economic Growth
TODs foster compact city growth and integrate land development and transit service seamlessly, creating a symbiotic relationship that allows more housing to be constructed in less space, increasing transit ridership, decreasing dependence on cars and car traffic, decreasing exposure to harmful fumes and improving access to jobs, services and opportunities.
TOD offers economic opportunities to transit agencies that do not rely on federal funding and must operate solely with fare revenue. Such agencies frequently own property adjacent to their stations or tracks which could be utilized for new development projects.
TOD projects can provide an important source of long-term revenue. TOD projects typically consist of residential and commercial developments, offices, cultural institutions and shops located within walking distance of transit – drawing both residents and non-residents alike to the area, leading to increased attendance and property value capture. Value capture such as this is especially advantageous for agencies that must fund capital improvements through fares alone; ground leasing provides another proven approach that generates ongoing recurring revenues for transit investments.
Increased Property Value
TOD increases property near transit by enabling people to live closer to jobs, services and attractions. Furthermore, TOD lowers commuting costs by cutting vehicle maintenance and fuel consumption expenses, as well as traffic congestion which contributes to air pollution levels that threaten an environmentally sustainable lifestyle.
TODs also draw businesses and tourists to local areas, helping the economy by creating increased economic activity that drives demand for local restaurants, shops, services, and products; eventually leading to higher revenues for surrounding businesses.
Housing and retail options near transit enhance community benefit, boost real estate values, and help communities maximize past transit investments. However, developing transit-oriented development (TOD) remains challenging in high-potential transit stations where outdated land use and zoning policies prevent TOD development from taking place. To address these barriers to TOD development this policy proposal encourages localities to remove restrictions that hinder TOD development for optimal public transit service and sustainable communities.