The Hidden Cost of Bundled Parking
DOI link for The Hidden Cost of Bundled Parking
The Hidden Cost of Bundled Parking book
This chapter describes what are the effects of parking provision on residential rents in America's cities? It finds that the cost of bundled garage parking for renters is approximately $1,700 per year, and the bundling of a garage space adds about 17 percent to a unit's rent. There are about 708,000 households without a car who have a garage parking space. The chapter argues that these households' payments for parking represent a direct deadweight loss to society of approximately $440 million per year. It also argues that this figure represents just the tip of the iceberg when considering the indirect cost of minimum parking requirements. The chapter concludes with suggesting two types of local land-use regulatory changes to reduce the high cost burden of parking: cities should reduce or eliminate minimum parking requirements, and cities should allow or encourage developers and landlords to offer unbundled parking options.