The Real Estate Blog

All aboard! Public transportation is the not-so-hidden engine driving the US economy, jobs, and cities. We don't have to showcase our point of view regarding the necessity of urban development. Public transportation systems stand out as thread and needle in this big picture, stitching together American cities' economic and communal fabrics. Serving as more than just a means to get from point A to point B, these networks boost economic energy, improve job opportunities, and support the structural growth of urban centers.

 

What social and economic factors do public transportation improve?

Across the United States, public transportation is a catalyst for economic growth. American cities with the best public transportation, such as Washington DC, Los Angeles, CA, and New York City, NY, are living and breathing proof of how transit can uplift large communities economically and financially.

Each year, this sector pumps billions into the economy, proving to be a solid investment rather than a mere expense. According to the central agency, the American Public Transportation Association (APTA), every dollar subsidized in public transit generates approximately five dollars in economic returns. Furthermore, every one billion Dollars invested can generate 50,000 jobs!

It is easy to imagine how this compelling multiplier effect translates to increased business sales, better infrastructure, job creation, and higher property values. 

 

Can public transportation increase property values?

An experienced local real estate agent can certify how a well-organized public transit system can boost a house sale in a given area.

One of the best examples is The Green Line Extension (GLX), which extends the Green Line light rail system (under the Massachusetts Bay Transportation Authority) northwest to Medford, MA, and Somerville, MA, at $2.28 billion. Once new stations were installed, neighboring property prices substantially increased virtually overnight in 2022. If you owned a home within a 15-minute walk, chances were that your home's worth shot up by almost 25-30 percent! Even if your asset was further than that (but within a half-mile radius), you could have pocketed a 10-15 percent gain.

Convenient access to transportation means a shorter commute, reduced traffic congestion, and no parking fees. Living near public transit attracts many purchasers, particularly young adults and families. Developers want to create additional residential and commercial areas around these transportation hubs. More significant construction packs a greater punch, excitement, amenities, and positive pressure on property values.

 

Larger-scope economic improvements facilitated by public transportation

We can't ignore secondary economic ripples, either. As public transit options improve, they encourage local businesses by directing a steady stream of patrons through retail corridors. In cities with robust public transportation, shops, restaurants, and service providers get the advantages of increased traffic. The ready availability of buses, trains, and subways makes spending money in major cities more appealing and accessible for residents and tourists alike.

 

Denver, CO, provided a worthy example of how public transportation facilitated the local economy.

A classic example of public transportation positively impacting a local economy is the case of Denver, Colorado, and its investment in the Regional Transportation District's (RTD) light rail system. The construction and maintenance of the Southeast Light Rail Line in 2006 created numerous jobs. This included direct employment from the project itself and jobs in supporting industries.

With improved access to different parts of the city, businesses experienced growth due to the easier commute for employees and customers. New companies were also more likely to set up shop near the stations to capitalize on the increased pedestrian traffic. Additionally, the light rail provided an affordable and convenient transportation option for tourists, encouraging longer stays and more spending in the local economy.

Last, Denver's light rail stimulated Transit-oriented development (TOD) (imagine a combination of commercial and residential areas created to expand access to public transport). The development resulted in more efficient land use and a vibrant urban scene, further attracting investment and economic activity.

 

Job accessibility: moving forward together

The implementation of diverse transit routes can shrink geographical differences. As a result, it enables even the lower-income population (or those living in economically disadvantaged neighborhoods ) to tap into the broader job market. Harvard studies pinpointed that homes with easy access to public transit experience a substantial rise in median household income. Moreover, this access can improve the chance of children from low-income families earning more.

Consistent data indicates that public transit widens the scope of job accessibility and employment opportunities for urbanites. Public transportation can bring them more jobs within a 90-minute commute compared to private cars.

 

Public transit not only facilitates but also enables job accessibility and inclusivity.

The connection between job accessibility and public transportation works both ways. Buses, ferries, streetcars, subways, airplanes, etc., facilitate access to jobs for passengers. If you think about it, the operation and supervision of these systems themselves are substantial sources of employment. Let's stress again the APTA report stating that every $1 billion infused into public transportation supports approximately 50,000 jobs, from drivers and mechanics to planners and engineers.

Additionally, public transportation can deliver the only practicable solution to get to work for people with limited mobility. Senior citizens, people with disabilities, and those who cannot afford a car greatly benefit from such services. It goes without saying how crucial it is for the national and local economies that every capable individual (who intends to work) can reach their workplace. At the end of the day, public transportation makes this inclusivity a tangible reality.

 

Let’s talk numbers: how many new jobs can new public transportation lines create?

Mobility Lab (Research Center for Transportation Demand Management) concluded in its October 2023 report that transit has the stamina to create more net jobs. If we give way to public transit instead of funding highway and road infrastructure, most States could generate 20 percent more jobs without additional expenses!

Los Angeles, CA, is one example of a US city where large-scale public transportation lines can create thousands of new jobs. The Los Angeles County Metropolitan Transportation Authority is developing its transportation network with several new projects. For instance, the Metro Purple Line Extension is a subway project expected to generate around 25,000 construction jobs and approximately 150 permanent jobs once the line becomes operational.

 

Setting the path to modern urban development

Public transit hubs have the potential to become focal points for urban development. They facilitate higher-density projects and more mixed-use buildings in their surroundings. Thus, they help create vibrant, walkable communities anchored by transit stations. Imagine cosmopolitan spots buzzing with commercial, residential, and recreational activities, all within your arm's reach! Anyway, navigating the urban landscape is much more fun and green using means of transportation.

 

In pursuit of higher objectives: less traffic congestion and lower carbon footprint!

We must remember how public transportation helps traffic congestion. Public transit reduces the number of cars on the road. So, welcome smoother traffic flows and say goodbye to maddening commuting times. In other words, public transport can heighten productivity and lower stress. You can now be a member of a more content and efficient workforce!

Efficient public transportation systems set the stage for greener, more sustainable urban expansion. Using buses, trains, and streetcars cuts down the reliance on fossil fuels. Secondly, it minimizes carbon footprints, aligning city growth with sustainable traveling and higher environmental objectives.

 

Conclusion

The impact of efficient public transportation on the economy is tiered. It boosts individual property values and leads to a city's economic growth by expanding local job accessibility. Furthermore, public transit systems can positively influence urban development. It is fundamental in shaping more equitable, prosperous, and sustainable cities. As urban centers continue to pulsate with life, public transportation systems will remain crucial in piloting the collective journey toward a thriving and inclusive future.

Undoubtedly, public transportation is one of America's still existing destiny-shaping pioneers.