The Value of NJ TRANSIT

In short, NJ TRANSIT more than pays for itself. For every dollar spent on operations, the system returns four to five times that value in economic, environmental, and social benefits, and serves as essential infrastructure for New Jersey’s mobility, affordability, and resilience.

NJ TRANSIT operates one of the largest public transportation systems in the country. On an average weekday, it moves more than 720,000 people across the state, connecting them to jobs, schools, healthcare, and daily life. Each year, that adds up to nearly 139 million bus trips and over 60 million rail trips, covering more than 2.6 billion passenger miles.

Its scale is hard to overstate: 2,800 buses running on 263 routes, and over 1,100 railcars serving 12 lines. The average bus trip is about 7 miles; rail trips are longer, averaging 26 miles. Transit serves riders across the income spectrum, from under $22,000 in annual earnings for the lowest-income bus commuters to over $185,000 for the highest-income rail riders. Altogether, NJ TRANSIT riders earn over $37 billion in wages and salaries annually.

Even if you don’t use NJ TRANSIT, your friends, neighbors, or co-workers do. And whether or not you realize it, transit plays a vital role in your community and your quality of life. Nearly 9% of commuter trips in New Jersey are by bus or train, and that doesn’t include the many other trips people take to visit loved ones, access essential services, or simply move through their day. Transit is a critical part of how New Jersey moves, and how its economy functions.

To understand just how much it matters, we imagined a future without it; a scenario where NJ TRANSIT is no longer a contributor to New Jersey’s mobility constellation or its economy. We analyzed five representative communities to measure what would be lost in terms of mobility, economic activity, and quality of life. Then we extrapolated those impacts statewide.

The results are stark: without NJ TRANSIT, the state’s road network would need to absorb over 2.5 billion additional vehicle miles each year. Without NJ TRANSIT, there would be gridlock on major corridors, more crashes, increased air and noise pollution, and higher public costs across the board. The loss of mobility could hamstring the state.

How this Report is Structured

This report opens with a statewide snapshot of how people commute, looking at where they live, where they work, and the role that transit plays in connecting the two. We identify the communities and job centers most reliant on public transportation.

Then, we take a closer look at five representative communities, selected not just for their high rates of transit use, but because they reflect different types of places across New Jersey. These cases quantify the value created by transit in each municipality, demonstrating the system’s economic value to the vibrancy of our communities. We then step back out to consider what these local stories tell us about the statewide value of transit.

According to the United States Census, 9% of New Jersey commuters get to work by bus or rail. The maps below show where they live, where they work, and how the system collects, concentrates, and distributes them between those locations. While the commute to work comprises only a small proportion of trips–about 20% on average–it is the work commute trip for which we have the most consistent data.

Rail riders, though heavily concentrated in the northeastern part of the state, hail from across New Jersey with significant concentrations distributed throughout. Many are heading to New York City, but a large number also travel to jobs in Essex and Hudson counties.

Bus commuters are similarly concentrated in the northeast, though to a lesser extent than rail riders. There are also significant pockets of bus ridership around Camden and Atlantic City. Given the much greater geographic coverage of the bus system, it is no surprise that there are nearly three times more bus than rail trips.

Regardless of personal resources or use, every resident of and visitor to NJ benefits from the system; each trip taken on NJ TRANSIT represents an important contribution to the economies of the state, its municipalities, and its local communities.

Value of NJ TRANSIT

In this report we look at five representative communities: Atlantic City, Bloomfield, Hackensack, Newark and Union City.

We selected these municipalities because they have higher-than-average transit ridership and represent a range of community types within the state. While there are similarities, each of these communities relies on transit in different ways, and would each experience different harm from the loss of NJ TRANSIT.

We worked with the urban economics consulting firm, Econsult Solutions, Inc. (ESI), to study the social and economic benefits and disbenefits of hypothetical service disruptions. The analysis shows economic gain or loss in each of these communities due to changes in safety conditions, economic competitiveness, environmental conditions, quality of life, and systems operation and maintenance.

Categorizing Benefits

Most of the benefits we see accrue to the greater community and some more directly to individuals. In general, community benefits or disbenefits are driven by the amount of vehicle miles traveled (VMT) in different contexts. Benefits/disbenefits come in the form of:

• Road Maintenance: when fewer trips are taken in private vehicles there is less wear on road infrastructure. With fewer vehicle miles travelled, municipalities pay less each year on maintenance and repairs, and residents pay less through taxes.

• Traffic Congestion: when trips are taken on transit instead of private vehicles congestion is reduced. Across the state 2.6 billion miles are traveled on NJ TRANSIT.

• Air & Noise Pollution: our analysis also considers CO2 emissions, EPA criteria air pollutants, and noise pollution. Reduced VMT corresponds to reduced emissions.

• Agglomeration Benefits: arise from more compact land use patterns. Compact land use is necessary for shorter trips, more pedestrian and cycling activity, and reduced need for car ownership. These facets have implications to business attraction and productivity, and thus the competitiveness of municipalities, the state and the region.

• Crashes: also associated with more or less VMT, measure fatalities and injuries to automobile users, fatalities and injuries to pedestrians and cyclists, and property damage. As VMT goes down with more transit travel, so do injuries, fatalities, and property damage.

• Alternative to Car Ownership: residents avoid the cost of owning and operating a vehicle, including the purchase, maintenance, insurance, and gas, which have all risen substantially over the past ten years.

• Travel Time: may increase or decrease with mode shifts from transit. Generally speaking, a local trip by car will be faster than the same trip by bus while a long distance rail trip will be slower by car. Hence trips once made by bus that are now made by car may be faster for the traveler, even while all the other trips are slowed due to the congestion impacts. Conversely, a rail rider now driving the same trip may face a slower trip altogether, especially during peak travel times.

Public Transportation in Atlantic City

Atlantic City is served by one rail line, the Atlantic City Line, which runs from the eponymous city to Philadelphia. There are 13 bus lines that serve Atlantic City including one express bus to the Port Authority Bus Terminal in Manhattan and one route to Philadelphia. The AC Jitney provides free shuttle transportation between the rail station and the casinos.

Commuters in Atlantic City

A plurality of Atlantic City commuters (45%) drive to work alone. Combined, public transportation (21%), walk (16%), and work from home (6%) make up another 43%. The rest carpool (8%), bike (1%), or report using a different mode (taxi, motorcycle, or other). The average commute time is 22.3 minutes.

Women and residents of Hispanic/Latino origin are over-represented among transit riders, meaning they would be disproportionately harmed by service reductions or the loss of transit.

Women in Atlantic City are 36% more likely to use public transportation than men. They make up 54% of transit commuters, despite representing only 48% of the labor force.

These gendered differences in mode choice are likely shaped by structural factors including caregiving responsibilities and access to safe and reliable transportation options. As a result, women may not have the same ability to use another mode when transit is unavailable. Any loss of transit service would therefore have a disproportionate impact on women in Atlantic City.

Hispanic or Latino workers living in Atlantic City depend on public transportation to travel to work nearly as much as driving, with 30% using public transportation compared to 35% driving alone. The Hispanic or Latino workers in Atlantic City represent nearly half (48%) of the municipality’s transit commuters, a factor of almost 2 ½ times their share of the labor force (20%). Hispanic and Latino workers in Atlantic City were more than twice (219%) as likely to use public transportation over other means of transportation compared to non-Hispanic or Latino workers.

Value of Transit in Atlantic City

Public transportation contributes $122.7 million in economic value to Atlantic City and the broader New Jersey economy every year. Bus service accounts for the bulk of that impact, generating $83.9 million annually. After subtracting operating costs of $32.7 million, the net annual benefit totals $89.6 million, meaning that every dollar invested in transit gets a return of $3.75.

And that’s just the part we can quantify. Beyond the economic impact, the loss of transit would likely result in even greater, harder-to-measure consequences that would negatively impact residents’ quality of life. Thousands of riders could lose access to jobs, education, healthcare, and community support systems, compounding existing inequities and straining public resources in other areas.

As shown in the table below, the benefits from reduced air and noise pollution and avoided crashes exceed the cost of providing the service. The other benefits, including reduced road maintenance costs, less congestion, lower emissions, and economic gains from greater agglomeration along with major cost savings for individual riders is all ​“bonus” value on top of the initial return.

Altogether, losing transit would amount to an economic loss of $5,430 per household each year equivalent to a 42% increase in rent (median rent is $1,084) and a 26% increase in median ownership costs with a mortgage ($1,768).

Public Transportation in Bloomfield

Bloomfield is served by two stations on the Montclair Boonton line. There are 12 bus lines including one express bus, the 102, that runs during the peak period to the Port Authority Bus Terminal.

Commuters in Bloomfield

Although the majority of commuters drive alone to work (almost 56%), workers in Bloomfield still have a relatively high dependency on public transportation. 13.3% of residents used public transportation to commute to work as opposed to 9% for the state. The rest carpool (8.6%), walk (3.2%), and just 1% take a different mode. At 18.1% of employees, Bloomfield’s residents work from home at a rate double the state’s average. The average time it takes to get to work is 33.6 minutes.

Though Hispanic and Latino workers make up 13% of the labor force in Bloomfield, they make up 27% of transit commuters, a share twice (201%) as large. They are 31% more likely to use transit than Non-Hispanic and Latino workers. Similarly, though Asian workers make up 5% of the labor force, they make up 11% of transit commuters. They are 15% more likely to use transit than non-Asian workers.

Value of Transit in Bloomfield

Public transportation contributes $129.2 million to Bloomfield and the NJ economy every year.

That’s the part we can quantify. As with Atlantic City, losing transit could easily cost more and adversely impact thousands of riders in potentially intangible ways.

The net annual economic benefit of the NJ TRANSIT service in Bloomfield is $97.3 million dollars. The total benefit of $129.2 million is offset by an estimated operating cost of $31.4 million suggesting a $4.10 return on every dollar spent to provide the service.

As with the Atlantic City case, the collective advantage of transit, i.e. the benefit of reduced road maintenance, reduced traffic congestion, and reduced air and noise pollution plus the agglomeration benefits, exceeds the operating costs. The substantial individual benefits in reduced cost of crashes, car ownership cost savings, and travel time benefits, totaling $91 million, are all upside.

Rail contributes to the majority of the value from carbon emission reduction. For all transit services within Bloomfield, carbon reduction benefits represent 4.47% of the value. However, for rail services in Bloomfield, carbon reduction represents 15.72% of the total value generated. Rail accounts for 88.7% of the value of CO₂ emission reductions in Bloomfield.

The annual loss of economic value per household would be $4,720 in Bloomfield, equivalent to a 22% increase in rent (median rent is $1,084) and a 16% increase in median ownership costs with a mortgage ($3,060).

Public Transportation in Hackensack

Hackensack is served by one rail station on the Bergen line. There are 18 bus lines including 6 that serve Manhattan.

Commuters in Hackensack

In Hackensack, the majority of commuters (61%) drive alone; 13% take public transit, 11% work from home, 7% carpool, 5% walk and fewer than 1% bike, and 3% take some other mode (taxi, motorcycle, etc.). On average, it takes commuters living in Hackensack 27.5 minutes to get to work.

Though the 2,282 workers identifying as Asian represent only 8% of Hackensack’s workforce, they represent 17% of its transit commuters. That’s more than twice their representation in the labor force, making them the most overrepresented transit commuters. Asian workers in Hackensack are 38% more likely to use public transportation over other means of transportation compared to non-Asian workers.

Value of Transit in Hackensack

Public transportation contributes $165.1 million to Hackensack and the New Jersey economy every year. As with the other cases, losing transit could easily cost more and adversely impact thousands of riders in potentially intangible ways.

The net annual economic benefit of the NJ TRANSIT service in Hackensack is $131.8 million dollars.

The total benefit of $165.1 million is offset by an estimated operating cost of $32.7 million, suggesting a $5.04 return on investment for every dollar spent to provide the service. Bus operations provide the lion’s share of benefit at 96% of net benefits.

In Hackensack, the benefits of avoided crashes and reduced congestion alone exceed the operating costs. The substantial, remaining collective and individual benefits totaling $100 million, are all upside.

Like larger cities we studied, agglomeration benefits from transit are also important to Hackensack. Agglomeration benefits make up more than 16% share of the total benefits in Hackensack.

The annual loss of economic value per household in Hackensack would be $8,130, which is equivalent to a 38% increase in rent (median rent is $1,794) and a 23% increase in median ownership costs with a mortgage ($2.879).

Public Transportation in Newark

Newark has a robust commuter rail system supported by NJ TRANSIT and serves as a critical hub for the system. The City is directly served by 6 of the agency’s 10 commuter rail lines. Newark Penn Station connects to the North Jersey Coast Line, Northeast Corridor, and the Raritan Valley Line. Newark Broad Street Station serves the Gladstone Branch, Morristown Line, and the Montclair-Boonton Line.

In addition to its commuter rail, Newark is a key hub of the PATH system , which provides frequent service through Jersey City and Manhattan, ending at the World Trade Center, as well as connections to Hoboken Train Terminal. Within the city, Newark’s light rail system operates along two service routes within a single network. One connects the city’s two major train stations and the Performing Arts Center, while the other stops at key destinations including NJIT and Branch Brook Park before terminating in Bloomfield. There are dozens of intrastate bus lines that serve the City of Newark as well as three routes that serve the Port Authority Bus Terminal.

With two major rail stations, a light rail line, PATH access, and an extensive local bus network, Newark is a critical hub in the daily operations of NJ TRANSIT, acting as both a major destination and as a central transfer point for tens of thousands of riders each day.

Commuters in Newark

The most frequently used mode to work for Newark commuters is drive alone comprising a plurality of 50%. The other half take public transportation (19%), carpool (11%), walk (5%), use other modes (9%), or work from home (6%). Newark has the longest average commute time among the study municipalities at 31.2 minutes.

Black or African American workers are overrepresented on transit by over double (210%) of their share of the labor force. While they comprise 27% of the labor force, they account for 56% of transit riders. Black workers in Newark were 87% more likely to use public transportation than non-Black workers.

Value of Transit in Newark

Public transportation contributes $1.72 billion to Newark and the New Jersey economy every year.

As with the other cases, losing transit could easily cost more and adversely impact thousands of riders in potentially intangible ways.

The net annual economic benefit of the NJ TRANSIT service in Newark is $1.4 billion dollars. The total benefit of $1.72 billion is offset by an estimated operating cost of $326.2 million, suggesting a $5.27 return on investment for every dollar spent to provide the service. Bus operations provide the lion’s share of benefit at 97% of net benefits.

In Newark, the benefits of reduced air and noise pollution, congestion and road maintenance exceed the operating costs by over $50 million. The substantial, remaining benefits totaling more than $1B, are all upside.

Among the municipalities we studied, Newark experiences the best return on operating costs for NJ TRANSIT. The ratio of benefits to costs is 5.12 in Newark, compared to 4.83 for all five municipalities.

The annual loss of economic value per household in Newark would be equivalent to $15,120, which is equivalent to nearly doubling (+95%) the median rent ($1,330) paid over a year ($15,960) or adding another half (+49%) of the median ownership costs with a mortgage ($2,553) paid over a year ($30,636).

Public Transportation in Union City

Union City is not served by NJ TRANSIT Rail. There are 32 bus lines including 23 that serve the Port Authority Bus Terminal.

Commuters in Union City

Private automobiles are the most common travel mode for the Union City labor force: 42% commute by car, 32% drive alone. Rare among US cities, more people in Union City take public transportation to work (35%), than drive alone. Just over 11% of the City’s employees walk to work; 10% carpool, 3% take other means such as taxi or scooter, 7% work from home. Union City commuters have the second highest average work commute time of the five study communities, clocking in at 30.5 minutes.

Hispanic or Latino workers, who make up nearly three-quarters (73%) of public transportation commuters, comprise only 42% of the labor force making them 3 ¾ more likely to be on transit than their non-Hispanic/Latino counterparts.

Like Atlantic City, Union City has a clear gender gap in commuting choices. Of transit commuters, 55% are women. Of the labor force, only 47% are women. The share of transit commuters who are women is thus 116% their share of the labor force, with further disparity on the Hudson-Bergen rail (129%). Women are 83% less likely to bike and 26% less likely to walk. By contrast, men are 54% more likely to drive.

Value of Transit in Union City

Public transportation contributes $393.6 million to Union City and the New Jersey economy every year.

As with the other cases, losing transit could easily cost more and adversely impact thousands of riders in potentially intangible ways.

The net annual economic benefit of the NJ TRANSIT service in Union City is $291.5 million. The total benefit of $393.6 is offset by an estimated operating cost of $101.2 million suggesting a $3.89 return on investment for every dollar spent to provide the service. Bus operations provide the lion’s share of benefit at 97% of net benefits.

In Union City, the benefits of reduced air and noise pollution, plus agglomeration benefits exceed the operating costs. The substantial, remaining benefits totaling more than $180 million are all upside.

The $394 million in economic benefits from NJ TRANSIT, if divided across Union City’s households, would be $15,138 per household per year.

The loss of this value would be equivalent to an 18% rent increase from the median ($1,489) and 9% increase to median ownership costs with a mortgage ($3,055). The $3,923 benefit per household from the reduced travel time alone in Union City is extraordinarily over 148% of the benefit per household among all five municipalities ($2,654.89).

The $32 million disbenefit from carbon emissions would cost Union City’s 25,782 households $1,255 each year, equivalent to a 7% rent increase from the median ($1,489) or 3.42% increase from median ownership costs with a mortgage ($3,055).

These benefits are not limited solely to riders. A loss of transit would certainly mean that riders would lose access to their jobs and other activities; employers would also lose access to a larger labor pool, and streets would become more congested as transit trips shift to private vehicles. Many of those trips would occur on roads already operating at or near capacity, compounding existing delays and increasing traffic-related costs. The rise in car travel would lead to increased air pollution and greenhouse gas emissions, with disproportionate impacts in densely populated areas.

To estimate the range of value NJ TRANSIT contributes to the state, we applied the average benefit cost ratio to the 2024 annual operating budget. This provides the upper bound of the estimate. The lower bound is created by weighting the benefit cost ratio by the population of transit commuters.