Skip to Content
Streetsblog Los Angeles home
Streetsblog Los Angeles home
Log In
Streetsblog USA

Streetcars and Development: It’s Complicated

Photo: Seattle Streetcar

Critics of modern streetcars say they are more a development tool than a practical mobility service. But are streetcars even good at spurring residential construction? Not so much.

A new study [PDF] of the Portland and Seattle streetcar systems — which are among the nation's oldest of the current crop of light rail networks — found that the development impacts were ultimately were mixed as a development booster.

The first phase of the Portland streetcar — a 3.9-mile line which was completed in 2001 — increased residential and commercial building permits 45 percent compared to similar areas of the city, the study found. But the second phase — which extended the system to seven miles in 2012 — had no significant effect on development, authors Jeffrey Brown and Joel Mendez wrote in the San Jose State University and Mineta Transportation Institute study.

In Seattle, the effects were also uneven. The authors found that in the areas surrounding Seattle's two separate, disconnected streetcar lines, commercial building permits increased 50 percent. Residential building permits, however, were 59 percent lower than the rest of the city.

The lesson for cities is that there are better incentives to spur development than simply using the "If we build a streetcar, they will come" approach, said Brown and Mendez.

Above all, the success of the streetcar as a form of transportation will affect development outcomes. They note, for example, that Portland's 7.2-mile system is well integrated into the larger transit network and has strong ridership. By contrast, Seattle's system — like many of the new generation streetcar systems — has had trouble attracting riders. Short modern systems — often operating without their own rights of ways —may not offer any obvious benefit over the bus, and indeed might be worse because of their limited reach.

"The lesson from Portland’s experience seems to be that the more effective a streetcar is as a transportation service, and the more it is used by patrons, the more likely it is to have development effects," Brown and Mendez wrote. "Simultaneously, a streetcar alone is not a guarantee of positive outcomes, as other factors such as a healthy real estate market, land availability, development-supportive zoning and other policies also need to be present."

By contrast, Seattle's "two disconnected lines" "do not seem to be attracting very many regular users because of their inherent limitations with respect to speed, reliability, and geographic reach," they wrote.

Seattle is poised to begin a new phase of streetcar construction that will connect the two lines into a much more functional system. Authors say that bodes well for development prospects around the line.

"Attracting residents to development along the streetcar is easier when the system can meet their transportation needs," they wrote.

The study comes at a time when there has been a surge in interest in building modern streetcar systems. More than a dozen — in Kansas City, Cincinnati and, most recently, St. Louis — operate today, with more on the way. Some of the systems, like Atlanta's, have been disappointing from both a ridership and development perspective, while others, like Kansas City's, seem to be performing better.

In New York City, Mayor de Blasio is keen on developing a $3-billion streetcar along the waterfront in two boroughs across the river from Manhattan. Those areas are already in the midst of intense residential and office development, so in this case, the mayor is seeking additional transportation to handle the quickly rising population in western Brooklyn and Queens.

But critics say his BQX streetcar would be no better than express buses on dedicated lanes.

Stay in touch

Sign up for our free newsletter

More from Streetsblog Los Angeles

Friday’s Headlines

ICE, WeHo K Line, HUD housing, clean-ups, bikes on stairs, BBB, Long Beach, Irvine, car-nage and more

February 13, 2026

Thursday’s Headlines

ICE, Vision Zero, Santa Monica bikeway, LADOT surveys, Mobility Plan, Westwood VA, Glendale-Hyperion Bridge, car-nage, and more

February 12, 2026

L.A. Seeks Input on Proposed Speed Camera Locations

L.A. is planning 125 speed camera systems citywide - location criteria includes histories of speeding/crashes/racing, areas with concentrated vulnerable populations, etc.

February 11, 2026

Wednesday’s Headlines

LAPD, ICE staging, L.A. Mayor's race, AI camera bus lane enforcement, L.A. is not Amsterdam, housing, car-nage, and more

February 11, 2026

Eyes on the Path: L.A. City Adding New Access Points to Chandler Path

New accessible ramp under construction at Strohm Avenue

February 10, 2026

This Week In Livable Streets

Alissa Walker, Florence bus lanes, Baldwin Park Greenway opening, ESFV rail, Santa Monica first/last mile connections, and more

February 10, 2026
See all posts