Skip to Content

Economic Tools

Fiscal and economic tools are an important component of the Transit Supportive Planning Toolkit.  The objective of these tools and the memorandum linked to at the bottom of this page is to provide local agencies with the tools to effectively communicate the anticipated economic outcomes of TOD-supportive land use development policies and scenarios.

The economic benefits of compact, transit-supportive development are not always understood in terms that are accessible to or understood by policy makers and the public.  The memorandum below documents recent research and statistics regarding the economic benefits of these development types with regard to property tax revenues, sales tax revenues, jobs, and property values, providing local agency staff with the information necessary to help make the fiscal and economic case for transit-supportive development policies and patterns.

Economic benefits of TOD summarized in the memorandum include the following:

  • TOD increases property tax reviews
  • TOD increases sales tax revenues
  • TOD catalyzes economic development
  • High density development costs less than less compact development
  • TOD increases potential for retail and office space
  • TOD outperforms lower density development
  • TOD increases property values
  • TOD increases returns for developers
  • Transit locations provide more community amenities
  • Transit locations produce better health outcomes
  • Housing and transportation costs can be lower in TOD locations

Research cited throughout the memorandum consistently shows that communities embracing transportation and compact development policies experience improved economic performance, while development situated in walking distance of transit stations has the strongest potential for realizing economic resilience and quality of life benefits.

Fiscal and Economic Benefits Memorandum


The Financing Tools section highlights federal, state, and market tools to finance and fund TOD and transit investments.  Furthermore, these tools also identify Federal sources for TOD planning grants that local and regional agencies can pursue and apply for to establish TOD districts. Tools mentioned are: