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That being said, it can be expensive to demolish a lot of stuff, especially if the land price is very high.
So it comes down to player judgement. If you are playing on for-profit playthrough, and money is a huge issue, then it would be probably be better to build the station in the suburb, and let the city grow towards the station. You can certainly rebuild everything when you have more money.
If cash is not an issue - as in a No Costs playthrough - then usually it would be better to place it right at the city center, at or around where the city name hovers in the map. Everything will just be rebuilt after anyway.
The impact from emissions is usually overweighted by the improved desirability from a station right next door, plus, the intracity bus and tram traffic required to service a station in the suburbs also generate emissions of their own.
https://steamcommunity.com/sharedfiles/filedetails/?id=2172554325
Buses can be profitable, even within a town area:
https://steamcommunity.com/sharedfiles/filedetails/?id=2277694098
To make all this work, I create my own "Railroad Avenue" city street that is on the diagonal parallel to my station, which is something that happens in real cities all the time, too. In the real world, the train tracks follow topography more than the street grid does, so you often end up with tracks at an angle to the primary urban grid.
Don't demolish all of one building type ie commercial though.
Really it doesn't make a lot of difference. The cost to set up outside of town can be more (or less) depending on how much real estate you're demolishing to build in town and how many connections you need to ferry cargo/people into the centre. Eventually the emissions will likely be the same anyway as well since even a central station will need some feeder lines from the suburbs and could overlap more.
End of the day towns grow, and you'll need to asses if it's a terminus or through station as this will affect placement as well. You may want just a basic setup early on, then late game try sinking the station down so bridging roads over it is easier. Or the opposite.
I did not however think about placing passenger rail in the center of town to alleviate the need for some bud stops.
Do most people let the cities build themselves or do they turn that function off and build roads where they want the cities to go?
https://www.youtube.com/watch?v=5xZUW4qYumo
Ah, good shout, thanks