Hidden Costs and Deadweight Losses: Bundled Parking and Residential Rents in the Metropolitan United States

Hidden Costs and Deadweight Losses: Bundled Parking and Residential Rents in the Metropolitan United States

This article questions the effects of parking minimums and policies on residential renters in the U.S. by analyzing a sample of rental housing units from the 2011 American Housing Survey.

Key findings

“The lack of rental housing without bundled parking imposes a steep cost on carless renters— commonly the lowest income households—who may be paying for parking that they do not need or want.”

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“The cost of garage parking to renter households is approximately $1,700 per year, or an additional 17% of a housing unit’s rent.”

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“There are about 708,000 households without a car who have a garage parking space. Much of this excess parking supply is due to municipal regulations, not consumer demand, and represents a direct deadweight oss to society estimated to be approximately $440 million per year.”

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