Here we consider the emergent role of transit-oriented development (TOD) that is playing a role in ‘future value’ whilst dealing with environmental resource and place-based concerns for property and planning.
“The activities in the economics of property and planning are often materialised in transport. For instance, the coupling of public transport and development issues can be tackled through adopting the principles of transit-oriented development (TOD). TOD is a growing trend in policy and practice, which can help create vibrant, liveable, and sustainablec communities.
Further, TOD takes importance to principles of being compact, mixed-use, dense, and pedestrian friendly when organised around a transit station. TOD also embraces the idea that locating amenities, employment, retail shops, and housing around transit hubs promote transit usage and non-motorised travel. TOD has been widely used for reducing automobile dependency and improving the sustainability of transportation activities.
Arguably, TOD schemes can (1) reorient the behaviour and motivation of residents, employees, and employers in their transport mode choice; (2) identify best practices to promote transit ridership between work and residence. For instance, it can be argued that people living in TOD areas tend to drive less, reducing their their vehicle miles travelled (VMT) compared to residents of the non-TOD areas even with similar land use patterns.
In terms of economics and finance, there are sustainable financial models that consider transit necessary to attaining a long-term vision and ‘future value’ of places. At the macro level, places are compact and have a rich mix of land use that are cohesive, liveable, and vital. At the micro level, TOD can recoup the costs of investment and finance additional improvements of TOD hub station-precincts.
As aligned with value capture (VC) principles, TOD projects enable the public sector to recoup part or all of the cost of high-quality public transport systems by capturing the incremental value increases in nearby land and property. VC schemes would generate much-needed revenues to help jump-start TOD.
‘Future value’ is often front and centre when looking at infrastructure at the sector that can unlock and connect to resources and places grow value. There is clearly a need for the very large infrastructure funding and financing gap.
Meeting this gap will involve a mix of both traditional and innovative approaches such as more bonding that lever future value and be clawed back. Prudence and tests of need for such innovation will be necessary depending on places of growth to ensure a sustainable and even development.
Transport as infrastructure can port value between places as well as realising value that would not have been created without the real infrastructure being built. Economically, transport can encourage an internalising of externalities such as those impacting on climate change, plus provide a greater affordability of places.
For instance, the use of TOD principles has economic benefits such as providing hubs of new growth that have regulations and cross-subsidies for affordable housing.”
This text is from my latest book. Please cite:
Squires, G. (2022). The Economics of Property and Planning: Future Value. Routledge.
Order paperback and hardback here: https://www.routledge.com/The-Economics-of-Property-and-Planning-Future-Value/Squires/p/book/9780367629670