Transit-Oriented Development Projects Continue to Reshape Cities

One federal funding program continues to support transit-oriented development (TOD) as a strategy to support encourage more ridership, expand housing options and create more connected communities while generating economic vitality for cities. TODs focus on building compact, walkable districts centered around public transit hubs such as rail stations, bus rapid transit corridors and multimodal transit centers. These initiatives are frequently supported by federal, state and local funding programs that prioritize improved mobility, sustainable infrastructure and equitable access to transportation.

When planned effectively, TODs bring together housing, retail, office space and community amenities within walking distance of reliable public transportation. Numerous projects currently underway highlight how this approach is shaping a new generation of infrastructure and real estate development.

Connecticut 

Approximately $22.7 million has been allocated for a Freight Street corridor redevelopment project in Waterbury, Connecticut. The project will upgrade a major downtown area for future mixed-use development. The work will include transforming an older, underutilized industrial corridor located near Waterbury’s train station.

The project will include demolition work, environmental remediation and infrastructure development. The objective is to deliver a development-ready parcel of land that can support commercial, residential and community-serving uses near the public transit station. When completed, the effort will provide walkable access, housing, areas for community gatherings and retail space. The redevelopment effort will take place on a site where several old buildings have already been removed to make room for the upcoming mixed-use development. Once remediation and site preparation activities are completed, the corridor will be ready for residential housing, retail storefronts, office space and other amenities. The project will also improve connectivity between downtown Waterbury and the adjacent Metro-North rail line. While design and redevelopment planning activities are expected to continue through the remainder of 2026, procurement solicitations are anticipated in 2027.

Washington

Officials in Washington, D.C., have announced a plan to transform underutilized Washington Metropolitan Area Transit Authority property surrounding the Takoma Metro station into a mixed-use, transit-oriented community. The multimillion redevelopment effort will include the addition of housing, retail and neighborhood amenities while strengthening connectivity between the transit station and the surrounding commercial district.

The project will deliver between 430 and 440 multifamily housing units, with at least 15 % of the units designated as affordable housing. The redevelopment will also introduce approximately 15,000 to 18,000 square feet of ground-floor retail and service space designed to connect with the existing Takoma retail corridor. Additionally, the project will create about 1.8 acres of publicly accessible open space, including a retail plaza adjacent to the station entrance and a shared-use path for pedestrians and cyclists. The project is currently in the design phase, with construction expected to begin in 2027.

North Carolina

Officials with the North Carolina Department of Transportation are nearing the final design phase of an estimated $388 million project intended to connect Raleigh and Cary while accommodating increasing travel demand. The initiative is also expected to maximize transit ridership and support development opportunities that include housing, retail and community amenities.

Raleigh officials are simultaneously planning mixed-use development initiatives that will benefit from the expanded transit network. These plans envision walkable districts that incorporate residential and commercial buildings located within convenient access of transit stations. The corridor will ultimately connect to emerging mixed-use developments in Cary.

The bus rapid transit project includes approximately 12 miles between downtown Raleigh and downtown Cary. The scope outlines bidirectional service operating from up to 19 weather-protected transit stations. The project may also include approximately 5 miles of roadway improvements designed to support dedicated bus lanes, as well as bicycle and pedestrian facilities. In addition, 10 compressed natural gas buses will be purchased to connect riders to major employment centers, activity hubs and transit-oriented development areas. Construction is scheduled for 2028.

Maryland

State officials in Maryland are preparing to launch a  redevelopment project for the State Center site in Baltimore. The property will be redeveloped as a transit-oriented mixed-use district. The site is located near several transit services, including the State Center Metro Subway station and the Cultural Center light rail station. It is also within walking distance of Baltimore’s Penn Station, making it one of the most transit-accessible development sites in the city.

Current planning envisions a walkable district that incorporates a mix of housing, retail space, public gathering areas and green space organized around the existing transit infrastructure. A formal solicitation process is planned for 2027 to select a development partner. Detailed building programs, construction phases and final redevelopment costs will be determined following market engagement and the partner selection process.

Arkansas

Officials with Rock Region METRO in Little Rock, Arkansas, are overseeing a $20 million project to create a redevelopment area centered on the region’s primary downtown transit hub. The project is designed to transform the existing River Cities Travel Center site into a mixed-use development integrated with transit services.

The effort will modernize the existing transit center and add development around it that supports both transit riders and surrounding neighborhoods. Proposed project components include multifamily housing, retail and commercial space, community meeting areas, health and wellness facilities, and administrative offices for Rock Region METRO. The redevelopment will be designed to create a walkable mixed-use district. Additional project elements include improved pedestrian connections and upgraded transit infrastructure intended to encourage additional economic development around the transit hub. The project is currently in the planning and feasibility phase, and a construction timeline will be announced at a later date.

Hawaii

A transit-oriented initiative has also been announced for the area near Honolulu’s Kūwili Station. The $135 million project is part of a larger redevelopment effort designed to reshape the Iwilei–Kapālama corridor in Hawaii. The initiative will be led by the city and county of Honolulu in coordination with state partners.

State involvement is connected to a broader planning effort that covers approximately 555 acres and outlines roughly $1.6 billion in infrastructure improvements intended to support large-scale redevelopment across the corridor. Planning documents describe a walkable mixed-use neighborhood that could include more than 1,000 affordable housing units supported by retail space, community facilities and new public amenities. Plans also call for new streets that will connect the district to the waterfront and downtown Honolulu, as well as multiuse paths, bicycle facilities and new sidewalks designed to strengthen the pedestrian network. Following completion of design activities, solicitations will be released.

Projects like these illustrate a trend that is expected to grow in the next several years. For companies involved in planning, engineering and construction, these initiatives represent significant upcoming opportunities. As more regions pursue these projects, transit-oriented development will continue to be a powerful catalyst for community revitalization and long-term economic development.