jonathan vottsel "transport infrastructure planning"
TRANSCRIPT
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McKinsey & Company | 1
What is transit oriented development (TOD)?
▪ The objective of transit oriented development (TOD) is to create highly livable communities around transit stations that will maximize value for the residents, employees, city government, and organizations involved in the development
▪ Transit oriented development has several notable characteristics:
– Located within ~800m (~10 min walk) from the mass transit station
– Moderate to high density development
– Mix of residential, office, retail and public development
– Designed primarily for pedestrians without excluding the automobile
Successful TOD defined Mixed-use development in TOD areas
High density of TOD areas
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McKinsey & Company | 2
Transit oriented development has significant impact on the city’s livability and increases real estate prices in the area…
▪ Shorter commuting time and better access to transit
▪ Lower car usage and increased transit ridership
▪ Higher real estate prices ▪ Improved business
attractiveness of the area ▪ Higher property taxes
▪ Lower crime and accident rates ▪ More livable and inclusive
community
▪ Reduced CO2 emissions ▪ Reduced noise levels ▪ Reduced fuel consumption ▪ Higher energy and materials
usage efficiency
Positive effects
TOD has positive effect on all key aspects of community life
Real estate price growth is typical after ToD is implemented Typical real estate price premiums
Economy and transport
Society
Environ-ment
30-60%
Price/sqm without access to transit1
150-200%
15-30% Premium for livability, safety, etc.
100%
Price/sqm in TOD areas
Premium for transit access and higher density
Examples of specific price premiums: ▪ Residential housing typically increases in price
by ~2,5% per floor as you move up ▪ Typical premium for close proximity to a well-
maintained park or green zone is 10-15% ▪ Pedestrian-friendly design premiums were found
to be in a range of 4-15% 1 Transit access is defined as 10 min walking proximity (~800m) to a transit station
Detailed further
| McKinsey & Company
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Modal split by level of transit access and type of land use (example of Portland, Oregon)
… reducing car usage and transportation costs
30% 13%
3 25% 16%
2 19% 16%
1 17% 15%
5 32% 12%
4
Housing Cost Transportation Cost
Low walkability
High walkability
Rest of region 90%
8%
Good transit & mixed land use 60% 25% 5% 10%
5% 2%
3%
Rest of county 85% 10% 2%
3%
Good transit only 75% 15% 2%
Auto Walk Bike Transit
Share of household income spent on housing and transportation by walkability level
Conclusions: ▪ Residents of transit-oriented development areas (with transit access, mixed land use, and walkable
environment) drive less and rely more on alternative modes of transport ▪ Although they have lower transportation costs, the transportation and housing costs combined are
higher for TOD areas, which reflects an overall higher quality of life enjoyed by the residents
| McKinsey & Company
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There are 8 core principles supported by quantitative metrics that differentiate TOD-projects from traditional development
▪ High-quality transit is accessible by foot
▪ The development is in an existing urban area ▪ Short distances make travelling through the city
convenient
▪ Residential and job densities support high-quality transit and local services
▪ The area of land occupied by motor vehicles is minimized
▪ Trip lengths are reduced by providing diverse and complementary uses
▪ Short commutes for lower-income groups
▪ The cycling network is safe and complete ▪ Cycle parking and storage is ample and secure
▪ The pedestrian network is safe and complete ▪ The pedestrian realm is active and vibrant ▪ The pedestrian realm is temperate and comfortable
▪ Walking and cycling routes are short, direct, and varied ▪ Walking and cycling routes are shorter than motor vehicle
routes
Principles of TOD Performance objectives
Best practice level, e.g., ▪ Hammarby Sjöstad in Stockholm, Sweden ▪ Västra Hamnen in Malmö, Sweden ▪ Vauban in Freiburg im Brisgau, Germany
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McKinsey & Company | 5
Based on these metrics transit stations areas around the globe could be easily compared and improvement levers identified
Best score in Moscow : 37 (Lubyanka station area) World best practice – ~100 (Hammarby Sjöstad in Stockholm)
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McKinsey & Company | 6
TOD metrics could be linked to core output KPIs like property value, vehicles kilometers travelled, CO2 emissions and transit ridership
30
30
40
100
370
410
620
170
Connect: Prioritized Connectivity (Higher Share of pedestrian/cycle inersections)
Mix: Access to shopping mall
Mix: Accessibility to Food
Transit: Access to metro
Densify: Higher Residential density
Shift: Lower share of On-street Parking and Traffic Area
Compact: Shorter commute
Walk: Higher share of Walkways
5
40
530
Increase in size of property (for flats larger than120 m2)
Presence of Balcony
Building material
Impact of building/flat related criteria
Impact of TOD/area-related criteria (selected criteria)
240Average price per square meter in Moscow
Th. RUR per m2
Indicator Value/Impact Comment Price based on ~40,000 property offers available for Moscow
Change from “Basic” to “Premium”
Change from “No” to “Yes”
Increase of property size by 10%
Reduction of commuting time to city center by 10%
Reduction of parameter by 10%
Reduction of parameter by 10%
Reduction of parameter by 10%
Reduction of parameter by 10%
Change from “No” to “Yes”
Change from “No” to “Yes”
Change from “No” to “Yes”
PROPERTY VALUE EXAMPLE