TOD...Why Now?

From Reconnecting America

Housing Preferences Are Changing:

Demand is changing dramatically because of profound demographic shifts, including the aging of baby boomers, the number of new immigrants, and the fact that younger adults prefer urban, mixed-use environments. While two-thirds of demand is still for large single-family dwellings, a third is for smaller housing choices, including apartments, townhomes, live-work spaces, and bungalows. The market isn’t meeting this demand, and the increasing competition for units in denser, mixed-use neighborhoods has caused a cycle of price increases, displacement and gentrification. There is an urgent need to increase this housing stock in order to meet market demand and protect and grow the affordable housing inventory.

Workers and Firms Prefer "24-Hour Neighborhoods":

In the past companies have preferred suburban campus environments near freeways, and regions have lured employers without regard to bigger picture development goals. But other issues are coming into play, including the rise of the "creative class," and the increasing importance of talent, technology and tolerance in a region’s economic development strategy. Because firms are chasing talent, which is choosing to locate in diverse, lively urban regions, firms now prefer these locations. A recent Jones Lang LaSalle survey found access to mass transit is very important to 70 percent of New Economy companies. And, according to PricewaterhouseCoopers' respected Emerging Trends publication, 24-Hour places are the best real estate investment locations.

Rail and Bus Systems Are In A Building Boom:

More regions are developing mass transit and more consumers are choosing mass transit over driving on congested roadways. Whereas public transit had existed primarily in older Northeastern cities, new systems have begun service in cities like Dallas, Denver, Salt Lake City, Sacramento, Charlotte, San Diego, Portland and San Jose. In fact, new rail or rapid bus systems are planned or under construction in all but three of the top 30 metropolitan areas.
At the convergence of these three trends is an opportunity to create the armature for a new growth and development strategy that meets the demand for location-efficient mixed-use places, supports regional economic growth strategies, and increases housing affordability — by increasing supply in neighborhoods with lower transportation costs. TOD occurs within a half mile radius of rail or rapid bus stations, encourages walking and cycling, has a mix of retail, commercial and residential uses, and a diversity of housing types suited to a mix of generations and incomes. It is the one strategy that promises to simultaneously meet these seemingly disparate goals.

Indeed, transit-oriented development has been touted as the palliative to traffic congestion and air quality problems, the high cost of housing, and Americans’ need for physical activity. But analysts have looked at projects on the ground nationwide and found few that deliver on this promise, and they’ve concluded TOD offers few advantages. In fact, the truth lies somewhere in between. Most so-called transit-oriented projects are simply conventional development located adjacent to transit, and cannot live up to the potential of truly effective transit-oriented development.