Measuring the effects of Austin’s Transit-Oriented Development zoning districts through multi-family property analysis

Transit Oriented Development (TOD) has become a popular technique for cities that are seeking to supplement public transportation investments with dense developments that serve to improve tax assessment values and increase ridership. The literature on TOD provides considerable insights on TOD implementation and value capture techniques, as well as numerous case studies that show the effects of TOD projects in other major cities. The literature also reveals problems with TOD implementation and the tendency of planners to overestimate the ability of TOD zoning to spur dense development and increase property values. Based upon a review of the successes and limitations of TOD strategies, this report assesses multi-family apartment communities near each of the three TOD station area regulating plans for the Red Line Commuter Rail in Austin, Texas. Evaluation of the data on multi-family rental housing indicates that there is not a significant rent or occupancy premium associated with newer properties near Red Line stations. In one of the three cases studied, older properties did benefit from the accessibility and infrastructure improvements associated with transit and TOD infrastructure improvements based on rent and rent per square foot premiums, although more research will be needed to determine whether this observation is coincidence or a trend. As transit infrastructure in Austin is improved, this study will provide a baseline for measuring the success of properties near stations. It is possible that transit infrastructure improvements will result in rent and occupancy premiums for station area properties in the future.Community and Regional Plannin