Transit agencies often justify their multi-billion rail projects by claiming that rail transit stimulates new development. This claim has, in fact, been refuted by research funded by the Federal Transit Administration and conducted by transit advocates. Despite their support for rail transit, the researchers reluctantly concluded that “Urban rail transit investments rarely ‘create’ new growth, but more typically redistribute growth that would have taken place without the investment.”
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In other words, development along the rail line is a zero-sum game: more development there meant less development somewhere else in the urban area. Total tax revenues in the urban area aren’t increased by light rail, except to the extent that taxes are raised to pay for it. Continue reading
