In urban planning and development, transit station areas are the unsung heroes shaping our cities. By examining the period from the Great Recession of 2007-2009 through the global COVID-19 pandemic of 2020-2023, a recent report offers invaluable insights on how transit-oriented development can transform our urban landscapes.
The detailed report Transit Station Area Development and Demographic Outcomes by Arthur C. Nelson and Robert Hibberd dives deep into how transit stations influence job growth, household dynamics, commuting patterns, real estate values, and gentrification. This is a goldmine for smart growth advocates because it aligns perfectly with creating sustainable, vibrant, and economically dynamic communities. Here are five key takeaways from the report that every smart growth enthusiast should know.
1. Transit station areas attract significant job growth
Let’s kick things off with one of the most exciting findings: transit station areas are job magnets. Despite covering less than 1 percent of urbanized land, these areas managed to attract over 20 percent of new regional jobs. Light rail transit (LRT) stations alone added nearly 1 million new jobs within an 800-meter radius. This is huge for smart growth because it shows how strategically placing transit stations can concentrate economic activities, cut down urban sprawl, and promote efficient land use. By clustering jobs near transit, cities can boost accessibility, slash commuting times, and reduce transportation costs, paving the way for more sustainable and lively communities. It’s a win-win for economic vitality and environmental stewardship.
2. Transit-oriented development promotes household diversity
Next up, the report highlights that transit station areas aren’t just job hubs—they’re also hotbeds of household diversity. These areas have seen a significant rise in households, especially among non-white residents and younger people under 65. This diversity is a cornerstone of smart growth as it helps create inclusive communities that reflect a wide range of socio-economic backgrounds. By attracting various household types, including families with kids, single professionals, and older adults, transit-oriented development ensures that neighborhoods stay dynamic and adaptable to changing demographics. This diversity fosters vibrant, resilient communities where different needs are met, reducing segregation and promoting social equity—all core tenets of smart growth.
3. The closer people live to transit, the less distance they need to drive
Here’s a big win for the environment: households near transit stations significantly reduce the distances they travel, measured in vehicle kilometers traveled (VKT) or vehicle miles traveled (VMT), depending on which part of the world you’re in. The closer people live to transit, the lower their annual VKT, which translates to reduced transportation costs and lower greenhouse gas emissions. For smart growth advocates, this underscores the environmental benefits of transit-oriented development. Less reliance on cars means lower traffic congestion, improved air quality, and safer, more walkable neighborhoods. Promoting sustainable transportation options and reducing the ecological footprint of urban areas aligns perfectly with smart growth principles. Encouraging development near transit stations is a smart move that promotes the efficient use of resources and healthier living environments.
4. Proximity to transit stations can impact real estate values and gentrification dynamics
The report provides a nuanced look at how transit station proximity affects real estate values and gentrification. While median household incomes in LRT and streetcar transit (SCT) station areas rose faster than in their regions, indicating potential gentrification, this wasn’t consistent across all transit types. Bus rapid transit (BRT) station areas showed minimal signs of gentrification.
Understanding these dynamics is crucial for smart growth because it highlights the complex relationship between transit-oriented development and housing affordability. Smart growth aims to create equitable communities where everyone benefits from development.
Our 2023 edition of Foot Traffic Ahead found that premiums in commercial rents, multifamily rental rates, and for-sale home prices in dense, walkable environments continues to show a real estate market and consumer preference for walkable urbanism over drivable alternatives. While the market continues to seek well-connected, walkable neighborhoods, the demand for these areas far exceeds supply, underscoring the need for policy reform that prioritizes mixed-use, mixed-income housing near transit.
Policymakers can use these insights to design interventions like affordable housing mandates and inclusive zoning laws to mitigate adverse gentrification effects. This ensures that transit-oriented development supports social equity and economic diversity, preventing the displacement of lower-income residents.
5. The importance of policy approaches to mitigate gentrification
Lastly, the report stresses the need for proactive policies to address gentrification pressures near transit stations. As transit-oriented development becomes more desirable, the risk of displacing lower-income residents increases. The authors suggest several policy measures, including affordable housing requirements, community land trusts, and zoning reforms that promote mixed-income development. These strategies are vital for smart growth advocates who strive to balance economic development with social equity. By implementing policies that protect vulnerable populations, cities can ensure that the benefits of transit-oriented development are widely shared. This approach not only preserves the social fabric of communities but also supports the creation of inclusive, diverse neighborhoods, which are fundamental principles of smart growth.
Conclusion
The Transit Station Area Development and Demographic Outcomes report is a treasure trove of insights for smart growth enthusiasts. It highlights how strategic transit-oriented development can create more sustainable, inclusive, and economically vibrant communities. By focusing on job growth, household diversity, reduced transportation impacts, and the careful management of gentrification, we can build cities that are not only more livable but also more equitable. As we move towards a future where urban development must meet the challenges of environmental sustainability and social equity, the lessons from this report offer a clear roadmap. In the end, smart growth isn’t just about planning for the future—it’s about creating a better present, one transit station at a time.