Transit-oriented development (TOD) refers to medium to high density residential, commercial, or mixed use neighborhoods surrounding new or upgraded transit stations that facilitate vibrant communities while contributing to regional economic competitiveness.
TOD provides residents, businesses and visitors the chance to live a higher-quality life without being solely reliant on cars, while contributing to meeting equity goals in local communities.
Economic Benefits
TOD (Transit-Oriented Development) refers to the planning practice of clustering housing, jobs and services around transit corridors or nodes. This strategy has proven itself successful at increasing sustainable ridership of public transit while simultaneously improving community livability.
TOD can maximize public investment returns in transportation infrastructure while helping reduce congestion, emissions and improving quality of life in communities while supporting economic development and environmental sustainability.
TOD can also serve as an invaluable way of revitalizing underserved neighborhoods by providing affordable housing solutions for low and moderate income people, encouraging entrepreneurship, and drawing residents closer to employment, schools, and essential community amenities.
TOD must be implemented carefully to ensure benefits are distributed fairly. For instance, it must take into account how to mitigate negative impacts such as gentrification and create accessible housing that accommodates those on limited incomes. TOD should also incorporate strategies for dealing with land use restrictions that impede its progress as well as strategies to overcome regulatory roadblocks that can impede development processes.
Environmental Benefits
Create sustainable neighborhoods by developing compact mixed-use communities near transit stations with housing, office space, retail and service amenities within walking distance to generate health, environmental and economic advantages for everyone involved. It also promotes high quality walking environments and encourages transit ridership.
Communities that are easily walkable encourage economic development in local businesses while drawing in more residents, thus increasing ridership on public transportation and decreasing carbon emissions from driving, as well as supporting climate-resilient development.
Equity-oriented transit-oriented development (eTOD) fosters vibrant communities by supporting strategies to ensure low-income households and communities of color can take full advantage of new developments, without being priced out. This may include providing affordable housing units while protecting existing residents from rising costs and displacement; providing employment and access to services; as well as investing in local businesses.
TOD differs from highway strip development by providing incentives for developers to invest in transit improvements such as transit easements, development bonuses and zoning tools that leverage private development for improved station access and circulation.
Social Benefits
TODs provide numerous community benefits beyond economic, environmental and accessibility gains. TOD principles aim to achieve equitable outcomes and enhance livability for all residents – particularly low-income households. Research reveals how job accessibility directly affects household members’ ability to secure high-quality employment; furthermore, lower overall commuting costs allow families more control over other expenses related to living costs.
TOD can also assist transit agencies with asset monetization by encouraging development that increases sustainable transit ridership and decreases parking subsidy needs. Local governments across the nation have increasingly implemented TOD strategies into their sustainability plans and set incremental TOD targets, such as New York City’s goal that 95% of new housing be developed within a half mile radius from mass transit locations or Hartford’s Transit Village Initiative.
TOD requires a comprehensive approach to planning, including equity processes that engage communities throughout all phases of TOD design. Check out these resources for more information on equitable TOD development.
Health Benefits
Urban development trends have recently seen an exciting surge in creating vibrant walkable communities centered around high quality rail systems – known as transit oriented development (TOD). TOD has been proven to increase city competitiveness while offering many health advantages.
TODs place residential, retail, office/ commercial space and civic uses in close proximity to public transit stations. This arrangement fosters a healthy mix of activities while decreasing car dependence and emissions; making travel to work or other destinations much simpler and faster.
TOD also promotes access to jobs and housing for low- and moderate-income people, especially in areas that have experienced gentrification. TOD works hand in hand with transit services to increase ridership sustainably while revitalizing neighborhoods and supporting economic development in cities, regions, or countries. TOD can ultimately provide multiple environmental, social and financial benefits that outweigh its negative impacts.