In contrast to the literature on induced traffic, the literature on induced development has not been reviewed comprehensively. This review finds that in the post-Interstate era, major highway investments have small net effects on economic growth and development within metropolitan areas, instead mostly moving development around the region to take advantage of improved accessibility. Induced development is very 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, impacts within the corridor will be moderated.
Abstract