Why more big cities should give value capture a chance

To help pay for big transit expansions, many cities around the world turn to an innovative financing approach called value capture. The name sounds wonky, but the idea is simple. As commute times and job access improve with a new transit station, the value of nearby real estate rises. A value capture program aims to capture that future windfall to fund construction today.
The idea of public investment benefiting private real estate raises concerns, particularly amid an urban affordability crisis. That may be one reason why value capture hasn’t caught on in the U.S. But if designed well (more on that later), value capture can ensure that private development supports public objectives — creating a vast source of funding for transit expansions that wouldn’t otherwise exist, and that benefit the broader city.