IDEAS home Printed from https://ideas.repec.org/a/eee/transa/v46y2012i6p901-925.html
   My bibliography  Save this article

Do parking requirements significantly increase the area dedicated to parking? A test of the effect of parking requirements values in Los Angeles County

Author

Listed:
  • Cutter, W. Bowman
  • Franco, Sofia F.

Abstract

Minimum parking requirements (MPRs) are the norm for urban and suburban development in the United States (Davidson et al., 2002). The justification for MPRs is that overflow parking will occupy nearby street or off-street parking. Shoup (1999a) and Willson (1995) provide 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. 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 MPRs bind for most land uses using data on suburban office, commercial, industrial and retail property sales from Los Angeles County using both direct and indirect approaches. Our indirect test of the effects of parking requirements is similar to the one used by Glaeser and Gyourko (2003). A simple theoretical model shows that the marginal value of additional parking to the sale price of a building 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. In addition, we directly examine required and supplied parking and find that on average parking supplied is quite close to the required amount.

Suggested Citation

  • Cutter, W. Bowman & Franco, Sofia F., 2012. "Do parking requirements significantly increase the area dedicated to parking? A test of the effect of parking requirements values in Los Angeles County," Transportation Research Part A: Policy and Practice, Elsevier, vol. 46(6), pages 901-925.
    • Handle: RePEc:eee:transa:v:46:y:2012:i:6:p:901-925
    DOI: 10.1016/j.tra.2012.02.012
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0965856412000304
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.tra.2012.02.012?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or search for a different version of it.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Munneke, Henry J., 2005. "Dynamics of the urban zoning structure: An empirical investigation of zoning change," Journal of Urban Economics, Elsevier, vol. 58(3), pages 455-473, November.
    2. Katherine Kiel & Michael Williams, 2005. "The Impact of Superfund Sites on Local Property Values: Are All Sites the Same?," Working Papers 0505, College of the Holy Cross, Department of Economics.
    3. Bowman Cutter IV & Autumn DeWoody, 2010. "Parking Externalities in Commercial Real Estate," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 197-223, June.
    4. Anderson, Simon P. & de Palma, Andre, 2004. "The economics of pricing parking," Journal of Urban Economics, Elsevier, vol. 55(1), pages 1-20, January.
    5. Sivitanidou, Rena & Wheaton, William C., 1992. "Wage and rent capitalization in the commercial real estate market," Journal of Urban Economics, Elsevier, vol. 31(2), pages 206-229, March.
    6. Jonathan Levine & Aseem Inam, 2004. "The Market for Transportation-Land Use Integration: Do Developers Want Smarter Growth than Regulations Allow?," Transportation, Springer, vol. 31(4), pages 409-427, November.
    7. Jeffrey Fisher & Dean Gatzlaff & David Geltner & Donald Haurin, 2003. "Controlling for the Impact of Variable Liquidity in Commercial Real Estate Price Indices," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 31(2), pages 269-303, June.
    8. Shoup, Donald C., 2004. "The Ideal Source of Local Public Revenue," University of California Transportation Center, Working Papers qt3x03s541, University of California Transportation Center.
    9. Ihlanfeldt, Keith R. & Taylor, Laura O., 2004. "Externality effects of small-scale hazardous waste sites: evidence from urban commercial property markets," Journal of Environmental Economics and Management, Elsevier, vol. 47(1), pages 117-139, January.
    10. Ecker, Mark D. & Isakson, Hans R., 2005. "A unified convex-concave model of urban land values," Regional Science and Urban Economics, Elsevier, vol. 35(3), pages 265-277, May.
    11. Deily, Mary E. & Gray, Wayne B., 1991. "Enforcement of pollution regulations in a declining industry," Journal of Environmental Economics and Management, Elsevier, vol. 21(3), pages 260-274, November.
    12. Rena Sivitanidou & Petros Sivitanides, 2000. "Does the Theory of Irreversible Investments Help Explain Movements in Office-Commercial Construction?," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 28(4), pages 623-661.
    13. Peter F. Colwell & C. F. Sirmans, 1978. "Area, Time, Centrality and the Value of Urban Land," Land Economics, University of Wisconsin Press, vol. 54(4), pages 514-519.
    14. Peter F. Colwell & Henry J. Munneke & Joseph W. Trefzger, 1998. "Chicago's Office Market: Price Indices, Location and Time," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 26(1), pages 83-106, March.
    15. Shoup, Donald C., 2004. "The ideal source of local public revenue," Regional Science and Urban Economics, Elsevier, vol. 34(6), pages 753-784, November.
    16. Shoup, Donald C., 1999. "The trouble with minimum parking requirements," Transportation Research Part A: Policy and Practice, Elsevier, vol. 33(7-8), pages 549-574.
    17. Munneke, Henry J., 1996. "Redevelopment Decisions for Commercial and Industrial Properties," Journal of Urban Economics, Elsevier, vol. 39(2), pages 229-253, March.
    18. Sivitanidou Rena, 1995. "Urban Spatial Variations in Office-Commercial Rents: The Role of Spatial Amenities and Commercial Zoning," Journal of Urban Economics, Elsevier, vol. 38(1), pages 23-49, July.
    19. Jan K. Brueckner, 2000. "Urban Sprawl: Diagnosis and Remedies," International Regional Science Review, , vol. 23(2), pages 160-171, April.
    20. Small, Kenneth A., 1992. "Using the Revenues from Congestion Pricing," University of California Transportation Center, Working Papers qt32p9m3mm, University of California Transportation Center.
    21. McCluskey, Jill J. & Rausser, Gordon C., 2003. "Hazardous waste sites and housing appreciation rates," Journal of Environmental Economics and Management, Elsevier, vol. 45(2), pages 166-176, March.
    22. Bento, Antonio M. & Franco, Sofia F. & Kaffine, Daniel, 2006. "The efficiency and distributional impacts of alternative anti-sprawl policies," Journal of Urban Economics, Elsevier, vol. 59(1), pages 121-141, January.
    23. Robert A. Simons & Jesse D. Saginor, 2006. "A Meta-Analysis of the Effect of Environmental Contamination and Positive Amenities on Residential Real Estate Values," Journal of Real Estate Research, American Real Estate Society, vol. 28(1), pages 71-104.
    24. repec:ucp:bkecon:9781884829987 is not listed on IDEAS
    25. Edward Ludwig Glaeser & Joseph Gyourko, 2003. "The impact of building restrictions on housing affordability," Economic Policy Review, Federal Reserve Bank of New York, issue Jun, pages 21-39.
    26. Henry J. Munneke & Barrett A. Slade, 2001. "A Metropolitan Transaction‐Based Commercial Price Index: A Time‐Varying Parameter Approach," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 29(1), pages 55-84.
    27. Sivitanidou, Rena, 1996. "Do Office-Commercial Firms Value Access to Service Employment Centers? A Hedonic Value Analysis within Polycentric Los Angeles," Journal of Urban Economics, Elsevier, vol. 40(2), pages 125-149, September.
    28. Kathleen P. Bell & Nancy E. Bockstael, 2000. "Applying the Generalized-Moments Estimation Approach to Spatial Problems Involving Microlevel Data," The Review of Economics and Statistics, MIT Press, vol. 82(1), pages 72-82, February.
    29. Mukhija, Vinit & Shoup, Donald, 2006. "Quantity versus Quality in Off-Street Parking Requirements," University of California Transportation Center, Working Papers qt727788bk, University of California Transportation Center.
    30. Richard Arnott & Tilmann Rave & Ronnie Schöb, 2005. "Alleviating Urban Traffic Congestion," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012197, December.
    31. Douglas Hodgson & Barrett Slade & Keith Vorkink, 2006. "Constructing Commercial Indices: A Semiparametric Adaptive Estimator Approach," The Journal of Real Estate Finance and Economics, Springer, vol. 32(2), pages 151-168, March.
    32. Maddison, David, 2006. "Environmental Kuznets curves: A spatial econometric approach," Journal of Environmental Economics and Management, Elsevier, vol. 51(2), pages 218-230, March.
    33. Colwell, Peter F, 1993. "Comment: Semiparametric Estimates of the Marginal Price of Floorspace," The Journal of Real Estate Finance and Economics, Springer, vol. 7(1), pages 73-75, July.
    34. Peter Colwell & Henry Munneke, 2006. "Bargaining Strength and Property Class in Office Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 33(3), pages 197-213, November.
    35. Christopher R. Bollinger & Keith R. Ihlanfeldt & David R. Bowes, 1998. "Spatial Variation in Office Rents within the Atlanta Region," Urban Studies, Urban Studies Journal Limited, vol. 35(7), pages 1097-1118, June.
    36. Sudip Chattopadhyay & John B. Braden & Arianto Patunru, 2005. "Benefits Of Hazardous Waste Cleanup: New Evidence From Survey‐ And Market‐Based Property Value Approaches," Contemporary Economic Policy, Western Economic Association International, vol. 23(3), pages 357-375, July.
    37. Krinsky, Itzhak & Robb, A Leslie, 1986. "On Approximating the Statistical Properties of Elasticities," The Review of Economics and Statistics, MIT Press, vol. 68(4), pages 715-719, November.
    38. A. Steven Holland & Steven H. Ott & Timothy J. Riddiough, 2000. "The Role of Uncertainty in Investment: An Examination of Competing Investment Models Using Commercial Real Estate Data," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 28(1), pages 33-64.
    39. Grenadier, Steven R, 1996. "The Strategic Exercise of Options: Development Cascades and Overbuilding in Real Estate Markets," Journal of Finance, American Finance Association, vol. 51(5), pages 1653-1679, December.
    40. Kiel, Katherine A. & Williams, Michael, 2007. "The impact of Superfund sites on local property values: Are all sites the same?," Journal of Urban Economics, Elsevier, vol. 61(1), pages 170-192, January.
    41. Cunningham, Christopher R., 2006. "House price uncertainty, timing of development, and vacant land prices: Evidence for real options in Seattle," Journal of Urban Economics, Elsevier, vol. 59(1), pages 1-31, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Jos Van Ommeren & Derk Wentink, 2012. "The (Hidden) Cost Of Employer Parking Policies," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 53(3), pages 965-978, August.
    2. 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.
    3. Sofia F. Franco & W. Bowman Cutter, 2016. "The determinants of non-residential real estate values with special reference to local environmental goods," Nova SBE Working Paper Series wp603, Universidade Nova de Lisboa, Nova School of Business and Economics.
    4. Arnott, Richard & Rowse, John, 2013. "Curbside parking time limits," Transportation Research Part A: Policy and Practice, Elsevier, vol. 55(C), pages 89-110.
    5. Kevin Hasker & Eren Inci, 2014. "Free Parking For All In Shopping Malls," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 55(4), pages 1281-1304, November.
    6. Tscharaktschiew, Stefan & Reimann, Felix, 2021. "On employer-paid parking and parking (cash-out) policy: A formal synthesis of different perspectives," Transport Policy, Elsevier, vol. 110(C), pages 499-516.
    7. Pons-Rigat, Aleix & Proost, Stef & Turró, Mateu, 2020. "Workplace parking policies in an agglomeration: An illustration for Barcelona," Economics of Transportation, Elsevier, vol. 24(C).
    8. van Ommeren, Jos & de Groote, Jesper & Mingardo, Giuliano, 2014. "Residential parking permits and parking supply," Regional Science and Urban Economics, Elsevier, vol. 45(C), pages 33-44.
    9. Arnott, Richard & Inci, Eren & Rowse, John, 2015. "Downtown curbside parking capacity," Journal of Urban Economics, Elsevier, vol. 86(C), pages 83-97.
    10. Sofia F. Franco, 2015. "Downtown parking supply, work-trip mode choice and urban spatial structure," Nova SBE Working Paper Series wp598, Universidade Nova de Lisboa, Nova School of Business and Economics.
    11. Franco, Sofia F., 2017. "Downtown parking supply, work-trip mode choice and urban spatial structure," Transportation Research Part B: Methodological, Elsevier, vol. 101(C), pages 107-122.
    12. Franco, Sofia & Cutter, W. & Lewis, Skyler, 2020. "The Shadow Cost of Parking Minimums: Evidence from Los Angeles County," Economics Department, Working Paper Series 1014, Economics Department, Pomona College, revised 12 Aug 2020.
    13. Jan K. Brueckner & Sofia F. Franco, 2017. "Parking and Urban Form," Journal of Economic Geography, Oxford University Press, vol. 17(1), pages 95-127.
    14. Qian Liu & Mingjian Zhu & Zuopeng Xiao, 2019. "Workplace Parking Provision and Built Environments: Improving Context-Specific Parking Standards Towards Sustainable Transport," Sustainability, MDPI, vol. 11(4), pages 1-23, February.
    15. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. W. Bowman Cutter & Sofia F. Franco, 2012. "The uneasy case for lower Parking Standards," Nova SBE Working Paper Series wp564, Universidade Nova de Lisboa, Nova School of Business and Economics.
    2. Bowman Cutter IV & Autumn DeWoody, 2010. "Parking Externalities in Commercial Real Estate," Real Estate Economics, American Real Estate and Urban Economics Association, vol. 38(2), pages 197-223, June.
    3. John Braden & Xia Feng & DooHwan Won, 2011. "Waste Sites and Property Values: A Meta-Analysis," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 50(2), pages 175-201, October.
    4. Martijn Dröes & Philip Koppels & Boris Ziermans, 2017. "Information Asymmetry, Lease Incentives, and the Role of Advisors in the Market for Commercial Real Estate," ERES eres2017_250, European Real Estate Society (ERES).
    5. Bulan, Laarni & Mayer, Christopher & Somerville, C. Tsuriel, 2009. "Irreversible investment, real options, and competition: Evidence from real estate development," Journal of Urban Economics, Elsevier, vol. 65(3), pages 237-251, May.
    6. Kahn, Matthew E. & Walsh, Randall, 2015. "Cities and the Environment," Handbook of Regional and Urban Economics, in: Gilles Duranton & J. V. Henderson & William C. Strange (ed.), Handbook of Regional and Urban Economics, edition 1, volume 5, chapter 0, pages 405-465, Elsevier.
    7. Thumm, Alex Jürgen & Perl, Anthony, 2020. "Puzzling over parking: Assessing the transitional parking requirement in Vancouver, British Columbia," Transportation Research Part A: Policy and Practice, Elsevier, vol. 139(C), pages 85-101.
    8. Barrett A. Slade, 2000. "Office Rent Determinants during Market Decline and Recovery," Journal of Real Estate Research, American Real Estate Society, vol. 20(3), pages 357-380.
    9. Inci, Eren, 2015. "A review of the economics of parking," Economics of Transportation, Elsevier, vol. 4(1), pages 50-63.
    10. Kim, GwanSeon & Schieffer, Jack & Mark, Tyler, 2020. "Do superfund sites affect local property values? Evidence from a spatial hedonic approach," Economic Analysis and Policy, Elsevier, vol. 67(C), pages 15-28.
    11. Doron Lavee & Tomer Ash & Gilat Baniad, 2012. "Cost‐benefit analysis of soil remediation in Israeli industrial zones," Natural Resources Forum, Blackwell Publishing, vol. 36(4), pages 285-299, November.
    12. Clapp, John M. & Bardos, Katsiaryna Salavei & Wong, S.K., 2012. "Empirical estimation of the option premium for residential redevelopment," Regional Science and Urban Economics, Elsevier, vol. 42(1-2), pages 240-256.
    13. Clark, David & Pennington-Cross, Anthony, 2016. "Determinants of industrial property rents in the Chicago metropolitan area," Regional Science and Urban Economics, Elsevier, vol. 56(C), pages 34-45.
    14. Steven Ott & W. Hughen & Dustin Read, 2012. "Optimal Phasing and Inventory Decisions for Large-Scale Residential Development Projects," The Journal of Real Estate Finance and Economics, Springer, vol. 45(4), pages 888-918, November.
    15. Karen A. Sullivan, 2017. "Brownfields Remediation: Impact on Local Residential Property Tax Revenue," Journal of Environmental Assessment Policy and Management (JEAPM), World Scientific Publishing Co. Pte. Ltd., vol. 19(03), pages 1-20, September.
    16. Peter Colwell & Henry Munneke, 2006. "Bargaining Strength and Property Class in Office Markets," The Journal of Real Estate Finance and Economics, Springer, vol. 33(3), pages 197-213, November.
    17. Taisuke Sadayuki, 2020. "The externality of a mortality incident within an apartment building: cases of homicide, suicide and fire deaths," Environmental Economics and Policy Studies, Springer;Society for Environmental Economics and Policy Studies - SEEPS, vol. 22(1), pages 21-38, January.
    18. Gallo, Mariano & D'Acierno, Luca & Montella, Bruno, 2011. "A multilayer model to simulate cruising for parking in urban areas," Transport Policy, Elsevier, vol. 18(5), pages 735-744, September.
    19. Kim, GwanSeon & Schieffer, Jack & Mark, Tyler, 2016. "Do Superfund Sites Affect Local Property Values? Evidence from a Spatial Hedonic Approach," 2016 Annual Meeting, July 31-August 2, Boston, Massachusetts 235835, Agricultural and Applied Economics Association.
    20. Jesper de Groote & Jos van Ommeren & Hans R.A. Koster, 2017. "The Impact of Parking Policy on House Prices," Tinbergen Institute Discussion Papers 17-037/VIII, Tinbergen Institute.

    More about this item

    Keywords

    Parking supply; Land use; Parking standards;
    All these keywords.

    JEL classification:

    • R52 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Land Use and Other Regulations
    • H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:transa:v:46:y:2012:i:6:p:901-925. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/547/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.