First of many "TOD"'s collapses
(TOD = "transit-oriented development", which some people think can provide additional passengers for our commuter rail line).
Update: The author of the ABJ piece assures me in comments that this wasn't "the" TOD project (not within the city limits) and claims that it had more to do with the housing market in general. This will teach me to link to articles for which I can't read the full text. However, commenters and other media have indicated that this was being characterized as "a TOD" (I actually finally posted this after receiving 3 different tips from readers), and my language, while imprecise, was referring to "the first failure among the group of self-proclaimed TODs", not "the first project declared to be a TOD has now failed". Keep this one as a "maybe". Certainly many people defending the commuter rail line have promised that it will provide stimulus for denser mixed-use development in that part of town - so the "weakening housing market" is in and of itself no defense here.
Original post follows:
Repeating the experience in South Florida with another stupid commuter rail line that requires shuttle-bus transfers, the first proposed TOD (really, not, just a slightly more dense suburban tract housing project) has collapsed in Leander. Expect more of these, although I expect Crestview Station and the Chestnut project will go ahead, since sufficient demand with or without rail already exists in those areas to fill the units allowed by the slight loosening of the way-too-strict zoning there. As Christof said, the most attractive place to add more density is where density already exists - don't forget, too, that true TOD requires high-quality transit, not just anything slapped on a rail that runs to a station out in the middle of nowhere.
Does TOD ever work in cities without Manhattan-like density? YES!. It works great on light rail lines which have demonstrated good ridership among choice commuters. That requires rail lines which deliver most people directly to their destination (within a moderate walking distance). Like what Dallas did; what Portland did; what Minneapolis, Salt Lake, Denver, and even Houston did. Like what we almost did in 2000; and could have fought for in 2004 instead of rolling over for Mike Krusee. But it's never, ever, happened on a commuter rail line with performance as poor as ours. Not even once.