ABSTRACT
In this chapter, the author describes the case that parking is a critical component of automobile-enabling infrastructure. She explains, in terms of basic microeconomics, why more parking would lead to more driving. The author presents empirical evidence of this relationship from a study conducted in New York City. In spite of opposing evidence, many cities cling tenaciously to the belief that they can reduce congestion by building new municipal lots and garages in their commercial districts and by requiring developers to include off-street parking in new developments. Compared with a market where parking is unbundled from housing, the bundle decreases home-ownership and increases car ownership. Requiring parking with housing increases the price of housing by adding construction costs, thereby shifting part of the cost of car ownership onto the house. While the effects of required parking on higher housing costs are well documented, much less considered is how bundling parking reduces the marginal cost of car ownership.
