The Economic Benefits of Public Transit:
Essential Support for a Strong Economy
Essential Support for a Strong Economy
Data from the American Public Transit Association, Summarized by Transportation Riders United
The evidence is clear: to develop a sound and vibrant state economy and to enhance Michiganders' quality of life, Michigan must increase its investment in public transportation.
Through increased jobs, income, profit and tax revenue, dollars invested in public transit provide an economic stimulus far exceeding the original investment. Studies estimate every dollar invested in public transit returns between four and nine dollars in economic benefit.
Public transit creates jobs.
Every $100 million invested in public transit creates and supports roughly 4,000 jobs.
- According to US DOT director Norman Mineta, every $1 billion invested in the nations’ transportation infrastructure supports approximately 47,500 jobs.
- Transit capital investment is a significant source of job creation. In the year following the investment 314 jobs are created for each $10 million invested in transit capital funding.
- Transit operations spending provides a direct infusion to the local economy. Over 570 jobs are created for each $10 million invested in the short run.
- Tri-Rail of South Florida expects its five-year public transportation development plan to spawn 6,300 ongoing system-related jobs.
- New York’s East Side Access project is expected to generate 375,000 jobs and $26 billion in wages.
Public transit stimulates development and redevelopment.
Many new public transit lines stimulate over $1 billion in new development within a few years.
- In 2000, the average downtown vacancy rate for cities without rail was 12.8%, but 8% for all cities with rail transit.
- There has been over $3.3 billion in new property development and redevelopment completed, underway or planned near Dallas Area Rapid Transit light rail stations since 1999.
- St. Louis has seen substantial transit-oriented development, redevelopment and real estate investments near its Metro Link light rail system opened, generating over $1 billion to Metro’s service area.
- Within five years after the construction of Portland’s light rail line, over 7 million square feet of new development valued at over $900 million occurred adjacent to light rail.
Public transit boosts business revenues and profits.
Businesses often realize a gain in sales three times the public sector investment in transit capital; a $10 million investment results in a $30 million gain in sales.
- In St. Louis, the public transit system modernization and expansion is expected to bring in $2.3 billion in business sales.
- Businesses located near the Dallas Area Rapid Transit light rail starter line have experienced a nearly 33% jump in retail sales in one year, compared to just 3% elsewhere in the city.
Public transit increases value and income for property owners.
Across American, properties that are within a short walk to a train stop are selling for 20-25% more than comparable properties further away.
- In Dallas, residential properties near light rail stations on average increased in value 39% and office buildings by 53%, compared to similar properties not near rail. The increase in taxable value of properties located near Dallas’ DART light rail stations was 25% higher than elsewhere in the metro area.
- In Chicago, properties adjacent to transit stations had a 20% higher increase in value compared to those located a half-mile away.
Public transit benefits local and state tax revenues.
- A typical state or local government could realize a 4 to 16 percent gain in revenues due to the increases in income and employment generated by investments in transit.
- The Washington Metrorail system is expected to generate $2.1 billion in tax revenues for Virginia over 30 years.
- Mixed-use development surrounding the Southwest Station in Eden Prairie, MN, will annually return over $400,000 in residential property taxes and nearly $300,000 in retail property taxes.
Public transit enhances productivity and reduces costs.
- Americans living in public transportation-intensive metro areas save $22 billion annually in transportation costs.
- The Altamont Commuter Express from Sacramento to San Francisco can cut annual commuting costs in half, from $5,300 to $2,700 annually.
- For every $10 million invested in public transit, over $15 million is saved in transportation costs to both highway and transit users, including operating costs, fuel costs, and congestion costs.
In addition, efficient public transportation enhances access to opportunity, increases productivity, saves money, limits air pollution, decreases traffic congestion and protects personal freedom, choice and mobility.
In short, public transportation is an investment in economic development and job creation that Michigan can’t afford to pass up.
American Public Transportation Association
The leading national transit organization has many useful reports, especially their series on the benefits of transit. A few top reports:
· The Benefits of Public Transportation - Essential Support for a Strong Economy
· The Benefits of Public Transportation - Building Investment Value in Our Economy and Marketplace
· The Economic Importance of Public Transit (Presented by The National Business Coalition for Rapid Transit)
· Public Transportation and the Nation's Economy (A Quantitative Analysis of Public Transportation's Economic Impact)
Dallas Area Rapid Transit
Strong quantitative data on the economic impact of Dallas’ DART lines.
Many examples of new development around DART stations.
http://www.unt.edu/cedr/reports.htm
Studies by Center for Economic Development at the University of North Texas
http://www.unt.edu/cedr/reports.htm
Studies by Center for Economic Development at the University of North Texas
Victoria Transport Policy Institute
VTPI covers a great deal of transportation and land-use topics, with good in-depth research.
The Brookings Institute
Useful reports by their Economic Studies Programs about trends for downtowns, their Metropolitan Studies about trends in development and demographics, and their Cities and Suburbs about real estate development trends.
Texas Transportation Institute of Texas A&M University System
Check out their reports and information about different types of transit. If you need some economic benefits numbers for TOD check here.
CEO’s for Cities
Check out their reports and publications for some good statistics on demographic and development trends in cities. Great place to find the latest on what other cities are doing to attract and retain the best and the brightest.
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