Why Transit Hubs Are Becoming Housing Hotspots
Homes near transit are gaining popularity as buyers look for walkable neighborhoods and lower transportation costs. Developers are responding with new projects.
NEW YORK – Transit-oriented development (TOD), once a niche urban planning concept, continues to gain traction as housing demand rises and communities look to make better use of existing infrastructure.
These higher-density residential projects built near transit hubs are helping address housing shortages, reduce reliance on cars, and support walkable neighborhoods. Research from nonprofit Reconnecting America found that by 2030, demand could generate more than 860,000 additional homes near major U.S. transit stations.
Additionally, TOD covers less than 1% of city land but can generate more than one in five new regional jobs, demonstrating that access to high-frequency transit can lead to stronger neighborhood housing demand, according to a 2025 Regional Plan Association report.
Households in these communities report annual transportation savings ranging from $429 to $1,232 compared with non-transit-oriented areas.
Proximity near reliable transit is a key selling point amid evolving work patterns, leading developers to build townhome communities and high-rise rental towers in suburban and urban markets. Analysts suggest densifying around existing transit infrastructure may play a growing role in meeting housing needs while limiting sprawl.
“Of course, TODs are proving increasingly popular nationally, from Seattle to Tampa and countless stops in between, and not just in market-rate development opportunities,” real estate reporter Jeff Steele said in Forbes. “As someone once said, “The way to fight traffic isn’t to keep widening highways and building exurban sprawl. It’s densification around existing transit stops, so driving is no longer a necessity.”
Source: Forbes (02/23/26) Steele, Jeffrey
© Copyright 2026 Smithbucklin