TOD stands for Transit-Oriented Development, or more commonly known as transit oriented development, which refers to dense neighborhoods constructed near public transit stations with greater density. Such TODs offer the ideal balance of dense urban form and public transport use.
Calthorpe’s research1 proves TOD generates far less traffic and parking requirements compared to traditional auto-oriented development, and tends to attract an array of economic activities in its communities.
Creating a Walkable Environment
Communities where residents can live, work, shop and play without needing their car are created with vibrant environments that rely on frequent transit service and are supported by its availability. Focusing development in areas near transit stations helps provide peak hour service more efficiently by creating backbones to support peak hour service networks.
Transit-oriented development (TOD), first popularized by planner Peter Calthorpe in the 1990s, has since become an essential strategy for sustainable urban planning, community goals and meeting state and federal policy objectives. Successful TOD reduces dependence on cars while improving access to housing, jobs, shops and services by making alternative modes of transport such as walking, bicycling, public transit carsharing or taxi easier (see Land Use Impacts on Transport).
TOD strategies also prioritize social inclusion by considering how communities are designed to welcome children, seniors, and people with disabilities–promoting active lifestyles while simultaneously decreasing greenhouse gas emissions from motor vehicles and fossil fuels. Furthermore, creating multiple transportation choices improves air quality by decreasing greenhouse gas emissions from vehicles or fossil fuel sources.
Creating a More Livable City
TOD development provides residential and commercial space clustered around rail transit stations for easy accessibility, encouraging residents to walk, bike, use public transit and carshare services and take advantage of local businesses rather than driving out to the suburbs for shopping and services.
TOD also decreases per capita automobile travel and can significantly enhance local economic development (Cervero & Arrington 2008; CNT 2013). TOD enhances business activity by offering customers convenient, accessible mixed-use neighborhoods; while at the same time helping reduce emissions, improve air quality, provide local jobs (Cervero & Arrington 2008; Jeihani et al. 2010).
TOD communities are becoming more and more appealing. A study by the Brookings Institution showed that households living near TODs could save $1,200 in annual transportation expenses and up to 85% on energy use and emissions – providing benefits for residents, the environment, businesses, city budgets and city infrastructure alike. By decreasing vehicle trips in cities it also reduces investment needs in new highways or freeways and cuts costs related to new investments for highway construction or maintenance.
Creating a More Sustainable City
TOD (Transit-Oriented Development) is an emerging trend of creating vibrant and livable communities centered on high quality public transit systems. Residents living in TOD communities typically own fewer vehicles, drive fewer annual miles, and rely more heavily on non-motorized modes of travel, like walking, cycling, carsharing or public transit for daily trips than in non-TOD communities.
Transit-oriented development refers to any construction of housing and commercial activities at higher density near transit stations in order to decrease automobile dependency, promote sustainable transit ridership, revitalize neighborhoods, and strengthen regional economic competitiveness.
TODs aim to enhance sustainability through dense residential areas, mixed land uses, 24-hour access to services and a walkable urban grid. All these components combine to form more sustainable cities by reducing carbon emissions, congestion and pollution while stimulating economic growth and community well-being. TOD also fosters balanced lifestyles by giving residents opportunities for work, rest and play within one neighborhood – this results in reduced stress levels and higher productivity levels.
Creating a More Sustainable Economy
TOD differs from conventional auto-oriented development by encouraging higher residential density close to transit stations or stops, using TOD zoning which permits compact residential buildings such as high-rise apartments or condos with office, retail and civic uses clustered together around them. This community-minded development approach results in what are known as TOD neighborhoods.
TOD’s compact, mixed-use and pedestrian-friendly design promotes healthy living by minimizing emissions and congestion related to transportation. Furthermore, TOD provides various amenities and services for community members, such as parks and plazas which contribute vibrant street life and encourage walking or bicycling trips.
TOD strategies can boost urban sustainability by shaping land use and transport decisions in tandem. Studies demonstrate how TOD increases access to jobs, housing and services while offering economic, environmental, and social advantages in any region.

