The Modern Streetcar 'Hoax'?

Plans for modern streetcars are becoming more popular across the U.S. as one component of a revitalization plan. Randal O'Toole argues that the connection between streetcars and economic development is a hoax.

1 minute read

December 18, 2006, 1:00 PM PST

By Chris Steins @planetizen


"The clear lesson is that spending huge amounts of money for what amounts to a Disneyland ride ends up hurting average transit riders. And not just transit riders: Portland schools, fire, police, public health, and other essential services have all seen budget squeezes even as the city continues to give huge subsidies to developers along the streetcar line.

...In short, the streetcar had nothing to do with the new construction. Without the subsidies but with the streetcar, virtually no new construction would have taken place. With the subsidies but no streetcar, virtually all of the new developments would have been built anyway."

Tuesday, December 12, 2006 in The Thoreau Institute

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 14, 2026 - Zachary Whalen

Cars driving under automatic congestion pricing toll machines on Broadway next to the Trump International Hotel in Manhattan, New York City.

Data reveals that NYC’s bet on congestion pricing has paid off

After almost two years of the program, reports show positive impacts on traffic and air quality and no disruptions to parking.

October 13, 2026 - Marcelo Remond

A crane lifts a manufactured house, with is rectangular and does not yet have a roof.

HUD modernizes 50-year-old manufactured housing framework

The Next Generation Manufactured Housing Action Plan establishes new energy-efficiency standards for manufactured homes, and new guidelines for anchoring them.

October 8, 2026 - Boston Real Estate Times

An aerial view of Dayton with a river and many trees visible

This Ohio town is using AI to speed up transit analysis

The Greater Dayton Regional Transit Authority’s new AI tool correctly determined riders’ preferred ways to reach key commuter routes.

45 minutes ago - Cities Today

Tourists admiring the Seattle skyline.

Yet again, Seattle’s density zoning update is hit with delays

The city must now examine the ‘maximum possible development’ under a future zoning scenario, rather than the ‘maximum likely development.’

1 hour ago - The Urbanist

a construction site. Cranes are seen building apartments.

In the heart of suburbia, a Utah developer is building a high-density downtown from scratch

The project faces criticism from some city council members, who say the private developer is using taxpayer dollars to turn a profit.

2 hours ago - The Salt Lake Tribune