That’s the conclusion of a new report from the Center for Clean Air Policy, titled “Growing Wealthier: Smart Growth, Climate Change and Prosperity.” The findings, released this morning, point to communities that have already improved quality of life and economic growth through increased transportation options and more efficient land use strategies.

The driving force is the pent-up demand for walkable communities better served by public transportation. For decades, the bulk of new housing has sprung up in suburban and exurban cul-de-sacs, accessible only by auto and often requiring long commutes to work and daily activities. Existing zoning, tax incentives and subsidies have heavily favored status-quo development, leaving more sustainable approaches at an unfair advantage.

Building farther and farther out — with the idea of giving more Americans access to a single-family lifestyle — was supposed to make our lives richer, literally and figuratively. But CCAP’s findings indicate otherwise. In fact, the communities that have created opportunities for people to live closer to where they work and utilize new travel options have seen remarkable progress. (This amplifies the Wall Street Journal story from last week about how Generation Y is less and less concerned with big yards and cul-de-sacs far from town than their parents. Could that be driving some of this change? Read that story here.)

In Dallas, Texas, for instance, downtown retail sales rose 33 percent the year after the new light rail system began operation. Portland, Oregon attracted $3.5 billion in private investment after just $100 million in streetcar funding. In Sarasota, Florida, downtown development costs clocked in at just half the cost of new development in the suburbs and generated four times the revenue in tax receipts.

Denver, Colorado perhaps best exemplifies the market for new approaches to growth and transit. Home values for Denver residents within a half-mile radius of the Southeast light rail line increased by 18 percent just as home values in the remainder of Denver declined by 18 percent, between 2006 and 2008. Nationwide, one study found that every one-point increase in a home’s “walk score” — a measure of how accessible the area is by foot — corresponded with a $700 to $3,000 increase in property value. As the report puts it:

The preponderance of the evidence leads us to conclude that smart-growth strategies can help communities, businesses and individuals make money, save money and enhance quality of life.

The TIGER grants program, which awards transportation projects that integrate environmental and economic innovation, is cited by CCAP as a starting point for federal reform. Expanding on the popularity of this important program is a good start toward a more merit-based and comprehensive approach to spending in the next surface transportation bill.

The report was authored by CCAP Transportation Analyst Chuck Kooshian and CCAP Director of Transportation Programs Steve Winkelman.

Transportation for America co-chair and former Meridian, Mississippi Mayor John Robert Smith shared his perspective as chief executive of a mid-sized city in a rural area. During his tenure, Smith initiated a renovation of Meridian’s historic train station, sparking growth and economic vitality in the downtown corridor that is now the “life of Meridian.” The improvements that he championed resulted in $135 million in capital investments around the station, and property values quadrupled in an area previously devoid of residents. More importantly, a vital aspect of mobility was restored for all residents of the area. Knowing firsthand how vital Amtrak service was to Mississippians, especially many traveling on fixed budgets, he helped lead the fight to restore the train route between Atlanta and New Orleans, and has continued his advocacy for passenger rail travel ever since.

Rural and small-town residents throughout the country are seeking more transportation options and want to ensure that they’re not left behind. Briefing panelists emphasized that transportation reform, far from leaving the heartland in the dust, can actually encourage growth and improve quality of life.

For one thing, improving rural transportation helps seniors. In 2000, 23 percent of older adults in America lived in rural areas, and as they age, they risk being isolated in their homes in the absence of adequate transportation infrastructure. Broader accessibility is a challenge as well due to long distances some rural Americans must travel to reach employment, groceries and health services. And, intercity mobility remains limited in many parts of the country, cutting people off from friends, family and economic opportunity. During the briefing, Mayor Smith spoke not only about the economic benefits of revitalizing the area around the train station, but also about the transit service that connected low-income residents in Meridian’s HOPE VI housing development, ensuring their access to essential destinations.

Enhancing transportation safety, relieving highway congestion by shifting goods movement to freight rail, investing in public buses and paratransit services and increasing intercity and multi-modal connectivity are some potential solutions for small cities and rural regions. T4 America staff have partnered with National Association of Counties and the National Association of Development Organizations, both of which were represented at the briefing, to help promote these solutions as vital parts of the upcoming transportation bill.

Far from leaving rural America out, a much-needed overhaul to our nation’s transportation policy can in fact provide a needed lifeline and help rural areas and smaller towns succeed as vital, livable places for all.

Rochelle Carpenter of Transportation for America contributed to this report.