The Numbers Don’t Lie: New Study Proves That Tactical Urbanism Can Boost Local Economy
Midosuji Avenue in Osaka, Japan.
Cities are rethinking development through tactical urbanism—using rapid, low-budget projects as a way to prototype ideas before investing in permanent solutions.
In Jersey City, New Jersey, tactical urbanism is now a formal part of transportation planning, where quick-build bike lanes and pedestrian plazas help guide long-term investment. Across Utah, cities are experimenting with pop-up bike lanes and temporary street closures to reimagine how people move and connect. Even rural towns in Appalachia are turning to these strategies to revitalize their main streets and attract visitors.
As more communities embrace this approach, researchers are beginning to measure what many advocates have long observed: that tactical urbanism can generate meaningful economic and social benefits.
This is nothing new, but so far the evidence—especially as it pertains to retail performance—has been largely anecdotal. To move beyond speculation, a team of researchers from Japan and the United States set out to determine whether a causal relationship could be definitively established between a tactical intervention and measurable economic growth.
Their study set out to answer two critical questions:
Whether the short-term pedestrianization of a street can increase retailers' sales volume,
And whether an intervention on a specific street has a spatial spillover effect on neighboring streets, resulting in increased sales volumes, and consequently, a sales increase for the entire district.
By employing large-scale transaction datasets and mobile device tracking, this study is one of the first to quantitatively measure the economic impact of a pedestrianization experiment.
Key Takeaways
The study used two key datasets to evaluate the economic impact of pedestrianization on Osaka, Japan’s Midosuji Avenue: retail transaction and mobile device tracking. Spanning from 2018 to 2023, the study tracked retail performance before, during, and after the intervention to provide a comprehensive view of the changes.
A screenshot of the study.
Retail Transaction Data: This dataset, provided by JCB credit card holders, tracked 739,282 transactions across 1,827 stores. These stores were grouped into categories like restaurants, bars, and small retail outlets, each contributing varying amounts to the overall sales volumes. By comparing sales volumes on Midosuji Avenue (Street 2) against other streets (Streets 1, 3–8), the study evaluated how pedestrianization affected retailer performance.
Mobile Device Tracking: Data from mobile devices allowed the study to track visitor density and mobility patterns. By comparing movement during the pedestrianization experiment to regular days in 2021 and 2022, the study gained unique insights into how people interacted with the space.
One of the study's most important contributions lies in its identification of how pedestrianization can transform streets into trip destinations, rather than just points of transit. Previous studies have shown that street experiments lead to positive impacts on health and mobility, but few have formally explored how such interventions can drive economic growth. The results from Midosuji Avenue suggest that when streets become destinations, they encourage exploration, increase visitor engagement, and directly boost local business revenues.
Photos of Midosuji Avenue provided in the study, courtesy of Osaka City Government, Planning Department, Planning Division Public Works Bureau.
Another takeaway is that pedestrianization doesn’t just benefit the street itself—it enhances the surrounding areas, too. Retailers in surrounding streets, including Streets 3, 4, and 5, also saw an uptick in sales volumes. More people visiting the district meant more opportunities for purchases, benefiting retailers throughout the area.
For policymakers and urban planners, this study offers a clear argument for embracing short-term placemaking. In a time when many cities are constrained by tight budgets and political uncertainty, these flexible, reversible interventions offer a way to test ideas in real-world conditions before committing to costly permanent changes. Tactical urbanism isn’t just faster and cheaper—it’s a practical feedback tool for making more informed, more effective public investments. And now, we’ve got the data to prove it.
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Asia (pronounced “ah-sha”) Mieleszko serves as a Staff Writer for Strong Towns. A dilettante urbanist since adolescence, she's excited to convert a lifetime of ad-hoc volunteerism into a career. Her unconventional background includes directing a Ukrainian folk choir, pioneering synaesthetic performances, photographing festivals, designing websites, teaching, and ghostwriting. She can be found wherever Wi-Fi is reliable, typically along Amtrak's Northeast Corridor.