
Transportation improvements have always guided economic development. Cities across the country are finding that streetcar routes are an effective way to spur development in their urban cores. Portland, Oregon is about to celebrate the 10th anniversary of its streetcar, the first modern streetcar system in the United States. A 2008 study found that Portland's streetcar system had generated $3.5 billion in investments and prompted construction of 10,212 housing units within two blocks of the line. That's why dozens of cities, including Los Angeles, St. Louis, Tucson, and Charlotte, are investing in modern streetcar systems.
Because the streetcar route is fixed, businesses along the route can count on consistent foot traffic. Developers can make long term investments on the streetcar route that they won't make along a bus route, which can be easily changed.