Economic Benefits of the Los Angeles Transit System

This paper describes how the Los Angeles, California area has a transit system that continues to expand as the demand grows due to its congested freeways and streets. This paper focuses on examples where the transit system and the concept of transit-oriented development are evolving as part of the backbone of this region’s transit expansion. Where possible, the paper will identify how the impacts of transit-oriented development have changed over time as the transit system has evolved. In addition, this paper will also focus on what incremental value, if any, is created by transit-oriented development. The work effort will distinguish between transit-oriented and transit adjacent development, and will attempt to measure the benefits associated with transit-oriented development. Benefits will include the differential effect of transit-orientation on site-specific measures such as land prices, rental rates, and other financial measures associated with the development. Benefits beyond the immediate site might include accelerated development for surrounding properties, short-term and long-term job creation, fiscal impacts, and increases in transit ridership. The paper concludes with an overview of a new study initiated by the Foothill Extension Construction Authority on the Gold Line light rail transit 24-mile extension to determine potential joint development opportunities adjacent to and around the extension’s twelve stations.