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Abstract
The research paper focuses on the topic of Transit Oriented Developments and its effects
on land use and land value. First, an overall introduction is given about the topic for a better
understanding of what TOD is about and then its examples and applications are pointed out. Later
on the paper, TOD’s importance in planning is explained and also its development options.
Introduction
Transit Oriented Development or TOD is defined as “a moderate to high-density
development (either new construction or redevelopment) within an easy walk of a major transit
stop, with a mix of residencies, employment, and shops” by the California Department of
Transportation 2011, 43. What it took for the realization of this concept starts from the post-war
developments. People started to gather around the center of the city where everything was readily
available and was only willing to move far if there was a transit option open for them. Slowly the
monocentric concept began to change and the cities started to have a central part and also a
downtown part which acts as a secondary center of the city. Highways, Street roads, Main roads,
etc came up as a part of development but those just became a path for the automobiles and were
not human-friendly. Traffic congestions, air pollution, and urban sprawl became serious issues. It
was no surprise to see that where there was an option for transit developments began to boost at a
higher rate than where there was no transit option. As an experiment, new modes of transportation
such as streetcars were tried out and it became really successful. People loved those mixed modes
of transportation and ease of access to a public mode of transportation. Once the main roads were
converted to mixed transportation modes with automobiles and streetcars running in the same road
it was time to explore into the street ways where it was just plain road and an open sidewalk.
Inclusion of bike routes and mixed use of those sidewalks gave a new perspective for the people
to be more on the street and use the space on the street on a multi-purpose mode rather than just
walking to reach a destination.
Even though the TOD concept came to the United States in the late 1980s the most
celebrated international TOD examples come from Scandinavia. Copenhagen was the first city to
envision a transit-oriented future and the Danish Town Planning Institute came out with the first
TOD plan known as the “Finger Plan” which directed future metropolitan growth along existing
and planned railway corridors. Following the Scandinavian precedent Asian countries such as
Singapore, China, Japan also implemented the concepts later on. Concepts were all the same but
minor tweaks were there due to the cultural, locational and other depending factors.
The TOD came into the United States with the main goal to increase transit ridership and
mitigate sprawl. They started with the concept of “transit villages” surrounding transit stops with
mixed-use commercial areas containing retail shop, offices, and housing. They also envisioned
transit villages with open spaces for community activities and saw streets as settings for social
interaction and active community life, not just means for the efficient circulation of cars. In recent
times, TOD has enjoyed broad support form different interest groups like Environmentalists,
Urban Planners, Housing Developers, and more.
Applications and examples of TOD
The TOD is supported from a higher level such as the US Department of Transportation
(DOT) to several Urban Development and City Planning institutes in various locations across the
country. The US DOT defines that TOD primarily occurs when regional or local governments
encourage it through land use planning, zoning laws, and changes to building codes, among other
things. When a TOD coincides with a federally funded transit project, technical assistance,
training, and other resources to complement the regional or local TOD. There are also other
institutes such as TOD institute in Washington DC which is a project of the US High-Speed Rail
Association advocated for the development of a 21st century, national rail system. Some of their
highlighted projects are:
• Rosslyn-Ballston Corridor which was a type of transit-oriented development that
concentrated on high density, mixed-use development along a major transit corridor while
preserving and enhancing existing residential neighborhoods.
• NoMa which was converted to a modern neighborhood with free outdoor WiFi, high
walkability score – 94, and a lengthy stretch of the Metropolitan Branch Trail.
• Addison Circle, Town of Addison. Converted into a high-density, mixed-use district with
a pedestrian-friendly street grid and a series of public parks.
Another institute is the Center for Transit Oriented Development, Alexandria, VA, and their goal
is to work with partners to deliver standards and techniques and spur their adoption. Their main
activities are:
• Technical Assistance by providing tools, techniques and research outcomes.
• Policy Development and Advocacy, to identify and work with partners to remove barriers
to TOD
• Finance and Financial Support, to provide financial support by establishing new funding
sources.
• Education and Outreach, to systematically build support for the concept of TOD like-
minded professionals will be driven into the group.
There are also other cities in the country which implemented the idea of TOD like Denver,
Phoenix, San Diego.
Implications for Planning Practice
Over the past decade, it has become clear that having the presence of a mode of transit can
and has the potential to increase the property values and result in valuable development
opportunities. In today's world where everyone is busy and so much in need of an option of a
transit system for every aspect of their life the demand for expanded transit system, policy makers,
transit planners, and elected officials are increasingly interested in harnessing a portion of the value
that transit confers to surrounding properties to fund transit infrastructure or related improvements
in station areas. Transit has the potential to offer a multitude of environmental, social, and fiscal
benefits.
Some of the benefits of the TOD accrue to the society as a whole, some to private and several to
both private and public sectors. Looking at the benefits of the TOD it is hard to measure a standard
value of the benefit. One of the best ways is to know of the benefit is to look at the rise in the land
value where these developments have taken place.
The curve of land value related to the Transit system
The above chart shows the impact of transit is expected to begin when public discussion of
a new transit system begins, or when a new transit project is first announced. Over time, property
values will continue to rise as it becomes more likely that the transit will be built, and the
commencement of service grows nearer. Over time the property value will increase as the transit
system continue to expand.
Transit and Development opportunities:
• Transit is a desirable amenity that can improve the marketability of new residential units,
office space, and other property types, and result in higher revenues (the transit premium).
• The introduction of transit can make valuable new sites available for development.
• Proximity to transit can improve the likelihood that high-density development will be
allowed, and make it easier to obtain development entitlements.
• Transit can help to improve the financial feasibility of higher-density development.
• Transit-oriented development (TOD) can promote partnerships between the private and
public sectors that result in a direct subsidy for the project and/or other beneficial
neighborhood investments.
Resources
1. "Books & ReportsBooks & Reports Home." Transit and Value Capture - Reconnecting
America. Accessed April 25, 2019. http://www.reconnectingamerica.org/resource-
center/books-and-reports/2008/capturing-the-value-of-transit-3/.
- This included the main concepts of how transit systems affect the land values
2. Chapple, Karen, and Anastasia Loukaitou-Sideris. "Transit-Oriented Displacement or
Community Dividends?" 2019. doi:10.7551/mitpress/11300.001.0001.
- This included the Transit-oriented concept of development
3. Slowey, Kim. "How Transit-oriented Developments Are Transforming US Cities."
Construction Dive. February 02, 2017. Accessed April 25, 2019.
https://www.constructiondive.com/news/how-transit-oriented-developments-are-
transforming-us-cities/435276/.
- This website gave an overview of how TOD is changing and have changed the cities
of US
4. "Transit-Oriented Development." Federal Transit Administration. December 14, 2015.
Accessed April 25, 2019. https://www.transit.dot.gov/TOD.
- This website gave an overview of how the federal system supports TOD
5. "TRANSIT ORIENTED DEVELOPMENT." Transit Oriented Development Projects.
Accessed April 25, 2019. http://www.tod.org/projects.html.
- This website gave examples of some of the TOD projects.
