The always insightful Transport Politic has an excellent article on the current state and future outlook of streetcars in America.  This article further demonstrates the ever-increasing interest in streetcars as a means of economic development by cities across the nation, suggesting the 2010s could be the decade of streetcars in America.  Read more here.

UPDATE 2/8/2011: For an excellent, detailed analysis of the specific economic benefits derived from a streetcar, see the Los Angeles Streetcar's economic impact study.

With dozens of cities as diverse as Los Angeles, Washington D.C., Dallas, Atlanta, and Cincinnati pursuing streetcars as engines of economic revitalization and smart growth, the 2010s could (once again) be the decade of streetcars in America.  The impetus for America’s renewed interest in streetcars lies in the overwhelming success of the Portland and Seattle Streetcars in serving as development-oriented transit.  This short essay will synthesize the quantitative results of the streetcars in stimulating new development, generating new jobs, and creating new retail destinations.

Streetcars serve as a powerful marketing tool for stimulating development and revitalizing previously economically-depressed neighborhoods.  Unlike buses, streetcars have had a measurable impact on property values due to their permanence, connectivity, and marketability.  In Portland, property values have increased ten-fold in many previously depressed areas along the line as properties along the streetcar become more desirable to build upon.[i]  Because of this significant financial return, property owners in Portland paid 25% of the costs of constructing the Portland Streetcar, while property owners in Seattle paid 50% of total capital costs.[ii],[iii]