Housing, businesses and community spaces located around transit stations help attract people and businesses to neighborhoods while increasing ridership of public transit systems and spurring economic activity in local economies.

TODs provide affordable housing solutions and reduce household transportation costs through proximity to transit services.

TODs can be inclusive when designed with equity in mind, providing housing for households of all ages and physical abilities.

Housing

Housing, which encompasses apartments, single family homes and condos, is an integral component of transit-oriented development. When located close to high frequency transit stations, housing options increase while greenhouse gas emissions from car trips decrease and equity in accessing jobs, services and community resources improves.

TOD neighborhoods typically encompass mixed-use developments within 1/4 to 1/2 miles (400 to 800 m) of a transit station, featuring walkability and bikesharing features as well as mixed-use development and compact city growth that reduce automobile dependency and congestion.

TOD projects involve new construction or the redevelopment of existing sites near stations, either new construction or renovating an existing housing stock to reduce costs and add to a neighborhood’s historic fabric. A good example is MTA Westbury Station TOD renovation; this initiative advances mixed-use and income-restricted housing on 1.92 acre surface lots while activating station areas and increasing customer amenities.

Retail

Over decades, new developments grew around suburban highways offering low-cost homes with quick commute times. Although communities benefited from these expansions, their development often occurred without adequate transit systems in place and caused more car traffic, congestion, and pollution than originally predicted.

TOD changes this by creating walkable neighborhoods connected by frequent and reliable public transit service. Not only is TOD an effective way of encouraging sustainable living; it also reduces car dependence by making working without one an option and improving access to city services.

TODs consist of residential, office and retail space located near transit stations. TOD areas often center around one station as their center point with higher density developments closer in with decreasing densities as distance increases from it. Cities around the world have adopted this approach in an attempt to promote development that is highly accessible with high quality public transit; TOD communities increase ridership while decreasing dependence on cars thereby decreasing pollution levels and making city life more enjoyable for residents.

Office

Establishing mixed-use office spaces near high quality transit can create jobs, support local business, attract tourists and make neighborhoods more livable. TOD may include retail shops, housing units and community facilities.

TOD investment can provide transit agencies and their service communities with significant returns, helping cover operating costs and fund system improvements.

Under current funding restrictions, it’s critical that projects which incorporate TOD as part of their value capture strategies receive priority and acceleration, along with higher matches from sponsors. By doing so, this approach can maximize benefits associated with new and upgraded transit service while protecting taxpayer dollars.

Increase the value of past transit investments by building more near it – such as housing and walkable commercial space – though onerous zoning and land-use restrictions often get in the way. Such barriers must be removed to allow more people to enjoy an alternative life with access to jobs, services, health, education and recreation more easily than they otherwise would.

Community

Integrating transit into communities is essential to making it work effectively, offering more housing options, decreasing traffic congestion, protecting natural areas from development pressures and providing added value to real estate investments.

Building a thriving community begins by situating homes, shops, offices and public spaces near high-quality, accessible and frequent transit stations. Doing so allows people to live without cars while also decreasing air pollution levels, cutting waste production costs and expanding opportunities for economic activity locally.

At a time of limited federal transit funding, targeting new development on areas where existing or planned stations already stand is smart. Doing this helps maximize return on investment for previous investments made into transit – through value capture – private developers can recover some or all of the increased value that transit projects create for adjacent property owners through leveraged development projects that leverage “value capture”.