What it means, and why it's a good thing:
In its simplest form, transit-oriented development means that if you want to build up neighborhoods and businesses, you have to recognize transit as a key element. Rising gas prices, a growing concern for the environment and a renewed interest in urban living has moved transit from a government priority to a priority for savvy developers.
Transit-oriented development - or TOD as it's called in planning and design circles - creates mixed-use and high-density developments that rely less on automobiles for transportation, and features pedestrian-friendly design.
Placing residential developments near transit hubs not only reduces traffic congestion and pollution but also makes neighborhoods safer, more livable and more sustainable.