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The topography of regulatory costs: The shadow cost-gradient of parking standards

Author

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  • Cutter, W. Bowman
  • Franco, Sofia F.
  • Lewis, W. Skyler

Abstract

This paper examines the shadow cost of minimum parking requirements (MPRs) for commercial real estate in Los Angeles County. This cost is defined as the difference between a parking space's market value and its combined construction and land costs. To estimate this shadow cost on a property-by-property basis, we use Mixed Geographically Weighted hedonic estimates to determine the value of on-site parking and location-specific parking cost estimates. Our methodology could also be applied to analyze the cost gradients of other zoning regulations, such as height limits and inclusionary housing.

Suggested Citation

  • Cutter, W. Bowman & Franco, Sofia F. & Lewis, W. Skyler, 2026. "The topography of regulatory costs: The shadow cost-gradient of parking standards," Journal of Urban Economics, Elsevier, vol. 152(C).
    • Handle: RePEc:eee:juecon:v:152:y:2026:i:c:s009411902600001x
    DOI: 10.1016/j.jue.2026.103830
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    JEL classification:

    • R38 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Government Policy
    • R48 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Government Pricing and Policy
    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations

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