The Commuter Premium: Transit Oriented Development (TOD) in NJ
In New Jersey real estate, distance to the train station is the single biggest driver of rent per square foot. "Transit Oriented Development" (TOD) is more than a buzzword; it's the dominant development pattern in the state.
The Transit Village Initiative
The NJDOT and NJ Transit designate certain municipalities as "Transit Villages." This designation comes with priority funding and technical assistance.
Benefits for Developers
- Zoning: Transit Villages must have zoning that supports high-density, mixed-use development near the station.
- Parking Reductions: Proximity to transit justifies lower parking ratios (often 1.0 or less per unit), reducing construction costs.
- Market Demand: Renters pay a premium for the ability to walk to the train and commute to NYC or Philadelphia.
The "Last Mile" Problem
Not every site is right next to the station. Successful TODs are now expanding the definition of "walkable" by integrating:
- Shuttles: Private jitneys to the station.
- Bike Storage: Secure, indoor bike rooms.
- Rideshare: Designated Uber/Lyft drop-off zones.
Emerging TOD Markets
While Hoboken and Jersey City are saturated, the next wave of TOD is happening further down the line. Towns like Bound Brook, Somerville, Netherwood (Plainfield), and Hackensack are seeing massive investment as renters seek affordability without sacrificing the commute.
Find the Next Hot Market
I track zoning changes and transit ridership data to identify the next emerging TOD markets in New Jersey.
About the Author
Ryan Goldfarb is a real estate development advisor. He specializes in TOD and mixed-use development strategies.