Are you sure that rail "stimulates development" and that buses don't? In a major report released today, the Institution for Transportation and Development Policy (ITDP) attacks this assumption head-on.
Per dollar of transit investment, and under similar conditions, Bus Rapid Transit
leverages more transit-oriented development investment than Light Rail Transit
What really matters to transit-oriented development [TOD] outcomes? According to the report, the #1 predictor is strong government support for redevelopment, while the #2 predictor is real estate market conditions. The #3 predictor is the usefulness of the transit services — frequency, speed, and reliability as ensured by an exclusive right of way. Using rail vs bus technologies does not appear to matter much at all.
While BRT is is having overwhelming success across the developing world, ITDP's argument is aimed at North America, so it rests on North American examples. Cleveland's HealthLine, a practical urban BRT linking two of the city's strongest destinations, emerges as a great urban redevelopment success story as well as the overall highest-quality BRT service in the US. Las Vegas, Ottawa, Eugene, and Pittsburgh's eastern line all play key roles in the argument. Las Vegas, whose busway is incomplete but is in exactly the right place to serve heavy demand, is one of the most interesting stories, where BRT is playing a key role in the remarkable pedestrianization of what used to be one of the most famous car-only landscapes in the world.
There will be plenty of quarrel over the details. But this report does represent a "coming out" for the very concept of bus-based transit oriented development. For too long, the identification of "transit oriented development" (TOD) with rail has bordered on tautological: if there wasn't rail, it was less likely to be called a TOD, no matter how useful the bus service was. In fact, almost everything that's been built in every North American inner city has been TOD in the sense that bus service — usually of high quantity if not high quality — has been intrinsic to the neighborhood's appeal and functioning.
This is not to say that I agree with ITDP's anti-rail view. I support many exclusive-right-of-way light rail projects, and I am not anti-rail except to the extent that rail partisans insist on being anti-bus. In most North American cities, if you're ideologically anti-bus, then you are hostile to most of your city's transit system, and to most of what transit can practically achieve in the near future at the scale of the whole city. Great transit networks are those where all the modes work together to maximize everyone's liberty. All claims for the hegemony of one mode over another are distractions from creating the most effective transit for a city as a whole.
But technology wars meet so many human needs that they will always be with us, and so given that it's best they be as balanced as possible. Bravo to ITDP for having the courage to speak up about the redevelopment value of highly useful and liberating transit services, regardless of what's going on under the floor.