Highway-Induced Development

Abstract

In contrast to the literature on highway-induced traffic, the literature on highway-induced development has not been reviewed comprehensively. This review finds that in the post-Interstate era, major highway investments have small net effects on the growth and development of metropolitan areas, instead mostly moving development around the region to take advantage of improved accessibility. Highway-induced development is close to a zero-sum game. Highway investment patterns tend to favor suburbs over central cities and thereby contribute to decentralization and low-density development. Corridors receiving major highway investments experience land appreciation and therefore are likely to be developed at higher densities than developable lands outside the corridor. Highways may be necessary, but they are not sufficient, to induce development. To the extent that current planning and zoning caps hold, the impacts within the corridor will be moderated.