Study Highlights Economic Impact of Transit-Oriented Developments
In Dallas, these projects have generated spending and created jobs.
Transit-oriented developments in the Dallas area are generating significant economic benefits, including bringing in nearly $1 billion in direct spending and creating thousands of new jobs.
This is according to a study conducted by the University of North Texas Economic Research Group that examined the impact of real estate development projects near Dallas Area Rapid Transit (DART) light rail stations. The findings support the view among economists and real estate developers that transit-oriented developments could be a boon to economic vitality in communities where they are built.
The Federal Transit Administration has endorsed transit-oriented development, saying “dense, walkable, mixed-use development near transit attracts people and adds to vibrant, connected communities.” The agency has made grants available to spur transit-oriented development.
The ERG study focused on 31 real estate development projects built near DART stations between 2019 and 2021, encompassing a mix of commercial, residential and public developments. Direct spending related to the transit-oriented projects reached $980 million while the cumulative economic impact within the 700-mile DAR service area reached $17.1 billion, which the report characterized as a significant boost to the Dallas-Fort Worth region’s economy.
The development created 10,747 jobs in the area and contributed $144.7 million in federal tax revenue and $49.6 million in state and local tax revenue.
Report author Michael Carroll said the trend of developing properties near light rail stations is not unique to Dallas. Similar patterns are observed nationwide, Carroll said.
He highlighted the growing importance of connectivity and multi-modal access in Texas’ rapidly urbanizing landscape, particularly in the DFW area.
“The results of this study also demonstrate that transit-oriented development is not a single purpose strategy,” said Carroll. “Over the decades, the development near DART light rail stations, including various types of residential communities and significant commercial, office and retail establishments, have not only provided transit accessibility but also simultaneously boosted the economic wellbeing of the DFW region.”