Ottawa Rapid Transit Network developments

[MalcolmTucker]

^ Rail bias, and the subsequent development effect have been described in many academic papers. I think Portland's Streetcar line is the en vogue example to use these days, since before it was put it there was a bus that provided the exact same service, at the same intervals, same fare.

After the rail line went in if my memory is correct around $3 billion dollars worth of development in the vicinity that academics have attributed to the streetcar.

Of course rail doesn't create development from a vacuum, it just changes where it is, and what build form it takes. However, since the build form ends up generating positive externalities while reducing negative ones this change is viewed as a positive.

This can be observed in downtown Toronto when you compared the development radiating out on streetcar streets vs non streetcar streets.

In the end it is either a cultural or instinctual bias that effects our choices. Either you can fight the choices and try to implement the optimal solution, or embrace it and choose the one that will result in the best outcome for society (the most surplus generated). There is a reason the market created streetcar suburbs and not motorbus suburbs back when the free market dictated much more of our mass transportation choices.

As for property values, improvements in one area do not reduce values in others. That would be true in a closed system with a fixed money supply, but our system is open with an ever expanding money supply. Plus adding rail is a real improvement, which creates real value. It is like saying a computer chip is not worth more than its elemental components, and that if it was worth more, then the rest of sand and metals is worth even less. We know this isn't true since you can create value by transforming things with labour. Plus, if your consuming a good and the supply is fixed the price should go up. If the rail system gets intensive enough I am sure there will be extra value for being far away from any rail for the small subset that doesn't enjoy superior transportation choices.