Transit-oriented development (TOD) refers to urban design that maximizes residential, commercial and leisure space within walking distance of public transit stations, creating an effective combination between dense urban design and public transportation usage. TOD facilitates this relationship symbiotically.

TOD residents typically own fewer cars and utilize public transit for most trips, which helps lower emissions, save on municipal services costs, and create more resilient communities.

Lower car emissions

Success of Transit-Oriented Development can significantly reduce per capita motor vehicle trips while simultaneously decreasing congestion, noise pollution and energy use. This is because population densities within TOD areas peak near transit stations compared with surrounding areas; additionally TODs tend to generate more uniform traffic patterns than auto-dominated neighborhoods that see high use during weekday peak commuting times and less usage at other times of the day.

TODs should ideally be located within half-a-mile of a bus or rail station and feature medium-density commercial and residential development with two to four story apartments and small lot single family homes, creating an idyllic living environment free of stress caused by owning and maintaining cars; it also alleviates expensive car payments, insurance premiums and fuel expenses that promote economic mobility within communities; furthermore TODs have shown to increase property values 5-15% which helps cover the costs associated with improvements.

Economically less expensive than suburban sprawl

Transit-oriented development typically includes high density housing, offices and retail. This high density can generate enough traffic to support frequent transit service as well as provide urban living benefits and reduce the number of trips required for basic daily needs; helping reduce associated costs like car ownership and operation.

While urban living may appeal to some, its cost can often put off others. The good news is that TOD costs much less than suburban sprawl – in fact three major national research investigations show this can save up to 25% in construction costs for roads, utilities and schools while simultaneously decreasing per capita motor vehicle travel and parking costs by 30%! These savings could then be put towards improving other public services like education, health or parks.

Environmentally friendly

TOD can reduce emissions and traffic congestion while also making transportation costs more affordable for families.

TODs generate increased revenue for transit agencies and the public sector via “value capture.” Businesses, homeowners and residents all reap the rewards from living nearby a bus or rail system – giving businesses, homeowners and residents access to greater land values that result from proximity. This revenue can then be used for funding transit investments or providing additional amenities within a TOD.

However, TOD initiatives must be pursued using equitable processes in order to ensure that its benefits are distributed equally; otherwise gentrification and lack of affordable housing near transit stations could negate its gains. As a result, The Dukakis Center advocates integrating equitable transit-oriented development (eTOD) strategies into planning and design processes.

Accessible to all

TOD is an integrated approach to urban planning, transportation and land use design, real estate development, public finance and land value capture that seeks to create sustainable urban communities with mixed uses and high quality walking and transit accessibility. TOD can be implemented both small and large scales; however it works most effectively in dense urban areas that have frequent and high speed mass transit services.

An ideal TOD lies within five to ten minutes’ walking distance of a transit station and offers a mix of residential, commercial, institutional uses as well as amenities such as venders selling snacks and periodicals; wayfinding systems; wayfinding services and carsharing options.

TOD locations typically see property values increase 5-15% due to multiple transportation options and reduced automobile and parking costs savings (CNT 2013). TOD strategies that include affordable housing can further boost affordability; this is particularly significant for low-income households and non-drivers. Furthermore, such measures may help address concerns regarding increased property prices and gentrification.