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Do Parking Requirements Significantly Increase The Area Dedicated To Parking? A Test Of The Effect Of Parking Requirements Values In Los Angeles County

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Author Info

  • Franco, Sofia
  • Cutter, Bowman
  • DeWoody, Autumn

Abstract

Minimum parking requirements are the norm for urban and suburban development in the United States (Davidson and Dolnick (2002)). The justification for parking space requirements is that overflow parking will occupy nearby street or off-street parking. Shoup (1999) and Willson (1995) provides cases where there is reason to believe that parking space requirements have forced parcel developers to place more parking than they would in the absence of parking requirements. If the effect of parking minimums is to significantly increase the land area devoted to parking, then the increase in impervious surfaces would likely cause water quality degradation, increased flooding, and decreased groundwater recharge. However, to our knowledge the existing literature does not test the effect of parking minimums on the amount of lot space devoted to parking beyond a few case studies. This paper tests the hypothesis that parking space requirements cause an oversupply of parking by examining the implicit marginal value of land allocated to parking spaces. This is an indirect test of the effects of parking requirements that is similar to Glaeser and Gyourko (2003). A simple theoretical model shows that the marginal value of additional parking to the sale price should be equal to the cost of land plus the cost of parking construction. We estimate the marginal values of parking and lot area with spatial methods using a large data set from the Los Angeles area non-residential property sales and find that for most of the property types the marginal value of parking is significantly below that of the parcel area. This evidence supports the contention that minimum parking requirements significantly increase the amount of parcel area devoted to parking.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 20403.

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Date of creation: 25 Jan 2010
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Handle: RePEc:pra:mprapa:20403

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Keywords: Minimum Parking Requirements; Land Use; Externalities;

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Cited by:
  1. Clifford Winston, 2013. "On the Performance of the U.S. Transportation System: Caution Ahead," Journal of Economic Literature, American Economic Association, vol. 51(3), pages 773-824, September.
  2. Richard J. Arnott & Eren Inci & John Rowse, 2013. "Downtown Curbside Parking Capacity," CESifo Working Paper Series 4085, CESifo Group Munich.
  3. Jos van Ommeren & Jesper de Groote & Giuliano Mingardo, 2013. "Residential Parking Permits and Parking Supply," Tinbergen Institute Discussion Papers 13-059/VIII, Tinbergen Institute.

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