Streetcars Seeding Economic Development Across U.S.

While some decry streetcars as expensive and inefficient, evidence is building in cities across the U.S. that the systems can serve as powerful boons to economic development.

2 minute read

June 22, 2007, 6:00 AM PDT

By Nate Berg


"Since the project opened in 2002, its financial losses have exceeded expectations. Last year ridership declined 10% to its lowest level yet. And the vintage system spans only 2.4 miles between the edge of downtown and a historic district called Ybor City."

"'It goes from no place to nowhere,' says Hillsborough County Commissioner Brian Blair, an opponent of the project."

"Like stadiums, convention centers and aquariums, streetcars have emerged as a popular tool in the effort to revitalize downtowns in the U.S. About a dozen cities, from Madison, Wis., to Miami, are planning lines. But while research shows that big-ticket projects such as ballparks largely fail to spawn economic development, evidence is mounting that streetcars are indeed a magnet."

"And in Portland, Ore., the poster child for such development, officials say the streetcar system has helped bring $2.7 billion in investment within two blocks of its 3.6 mile line, much of it in the 24-hour hub known as the Pearl District."

"Still, streetcars face considerable odds because they vie for the same money as transportation projects designed to serve the suburbs. This has been particularly true at the federal level, where funding has long depended on how quickly projects can move people from one point to another. Streetcars, which average under ten miles per hour, are at a distinct disadvantage. By contrast, light rail moves at 20 to 60 miles per hour."

Wednesday, June 20, 2007 in The Wall Street Journal

View form second story inside Southdale Mall in Edina, Minnesota with escalators and model cars parked on downstairs floor.

The Mall Is Dead — Long Live the Mall

The American shopping mall may be closer to its original vision than ever.

March 21, 2024 - Governing

View of Austin, Texas skyline with river in foreground during morning golden hour.

The Paradox of American Housing

How the tension between housing as an asset and as an essential good keeps the supply inadequate and costs high.

March 26, 2024 - The Atlantic

Houston, Texas skyline.

Report: Las Vegas, Houston Top List of Least Affordable Cities

The report assesses the availability of affordable rental units for low-income households.

March 22, 2024 - Urban Edge

Aerial view of Anchorage, Alaska downtown with mountains in background at golden hour.

Anchorage Leaders Debate Zoning Reform Plan

Last year, the city produced the fewest new housing units in a decade.

March 28 - Anchorage Daily News

Young man in wheelchair crossing zebra crosswalk.

How to Protect Pedestrians With Disabilities

Public agencies don’t track traffic deaths and injuries involving disabled people, leaving a gap in data to guide safety interventions.

March 28 - Governing

Aerial view of mountain town of Steamboat Springs, Colorado in the winter with snow at dusk.

Colorado Town Fills Workforce Housing Need With ‘Dorm-Style’ Housing

Median rent in Steamboat Springs is $4,000 per month.

March 28 - CBS News

News from HUD User

HUD's Office of Policy Development and Research

Call for Speakers

Mpact Transit + Community

New Updates on PD&R Edge

HUD's Office of Policy Development and Research

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.