Job creation is accelerated near transit

Transit-accessible locations outperform on job growth

From 2005 to 2015, the Chicago metropolitan region added about 334,000 jobs, a growth rate of nearly 9 percent. About half of those new jobs are located within a half-mile of a CTA or Metra station, and 60 percent of them are in areas with high-quality transit service.[1] Table 1 shows that areas close to stations grew jobs at a much faster rate than the regional average. Areas within a quarter-mile—a five-minute walk—of a CTA ‘L’ or Metra station, grew by 20 percent, more than twice the regional rate. Conversely, areas further than a half-mile from rail grew two percent slower than the regional average.

Table 1: Job growth is higher near transit

Commercial development is accelerating in transit-oriented areas

Commercial construction is another indicator that the region’s economy is growing near transit. While construction rates are closely tied to broader economic conditions, the past 10 years show a clear trend that has been rapidly strengthening since 2014. Increasingly, commercial construction is happening within a half-mile or less of a CTA ‘L’ or Metra station. In 2017, 85 percent of all commercial construction happened in this relatively miniscule area as shown in figure 1. While there are many factors motivating a developer’s decision to build, the market has a clear preference for locations near transit.

Figure 1: Commercial reconstruction ramps up near transit

This transit-friendly trend also goes beyond commercial construction. Figure 2 shows all permits issued in the City of Chicago for new construction or renovation valued at $100,000 or more. Areas closest to rail transit have consistently attracted more investment. The same is also true if bus service is included.

Figure 2: Chicago reconstruction near transit is most attractive