People often get excited when it’s announced that light rail is coming to their neighborhood. There is an assumption, mostly supported by the research depending on how far from the rail the research explores, that it can attract more businesses and encourage developments of more housing units, while at the same time increasing property values.

Overall, a strong and connected public transportation encourages cities to build inward instead of outward by increasing the ability for nearby residents to carry out activities.

 For example, the City of El Paso is designating some areas as Transit-Oriented Development (TOD) zones in anticipation of their Streetcar Project. This move provides incentives for businesses to come and make neighborhoods near transit a vibrant one, where people are able to go to important places like jobs, grocery stores, schools, parks and other public amenities within close distance to each other.