unless everyone is generally wealthy enough to afford one stored-electric vehicle / (biofuel assist maybe) for daily local use and another longer range one (perhaps shared or rented) for occasional out of town trips.
The density required depends on the amount of public money voters are willing to spend on transit, but the generally feeling that somewhere north of 9 housing units per acre is required. If the need for wide streets and two car garages is removed from the equasion, this could mean single family houses spaced fairly closely (36' wide houses 20' apart, lots are 90'+ deep), similar to 'old' suburbs. However this would require fairly generous local funding.
It's been observed that installation of fixed local transit assets, such as subway stations, significantly increase local land values. If zoning is permissive, high land values, and especially, high property taxes, tend to cause more intensive local development. (Firefighting Jargon, and I don't know if it's anywhere else, refers to a building with apartments/condos over street-level retail as a 'taxpayer'). The effect is compounded if taxes are relieved on the actual building - such that owners aren't penalized for providing more building on less space, encouraging efficient use of scarce land near transit stops.
In addition to density, a certain level of use mixing is required, namely the services, such as grocery retail, that a neighborhood uses, should be located within the neighborhood, such that walking / biking becomes a more attractive option.
There is a network utility achieved with larger transit systems: a transit stop on a 2 stop line isn't nearly as useful as a stop on a 30 stop network.
Ideally, local funding for regular local service mass transit (trams, bus-trams, metro) should be funded entirely out of local land value taxes, much like use of elevators in a buiding are funded by tenant leases. Eliminating fare collection speeds up boarding and makes transit more attractive. The marginal cost of adding a passenger to a tram that is already running is negligable. The benefit to transit-stop local properties is provided by increased foot traffic and/or increased network utility.
In less dense areas, or as an augmentation to a fixed stop-at-every stop fare-free tram or metro, I am hopeful that
Personal Rapid Transit will prove viable. This would allow, for a fare, direct private routing from PRT station to PRT station, with little or no waiting for an available car. PRT takes the idea of smaller, more frequent trains to it's logical extreme, and couples it with off-the-main-line stations, allowing cars to remain at speed when bypassing non-terminal stations. The small car size also minimizes guideway costs, and allows the cars to be mounted on lighweight overhead rails. Such grade separation allows the cars to be operatorless and controlled from a network of scheduling computers. In short, PRT gives car-like convenience, uses wired electric power, at a reduced physical footprint cost: no parking, no garages, no 3 lane roads, no service stations, etc.