The effect of minimum parking requirements on the housing stock

Publisher's full text
Matts Andersson
Svante Mandell
Helena Braun Thörn
Ylva Gomér

The cost of parking is in many cities subsidized and instead channelled through higher housing prices, wages, taxes, etc. The effects on other markets are principally well known, but the work on the area is limited. In this paper, we study how parking norms affect the size of the housing stock. Our analysis is based on a model of the rental, asset- and construction markets, the results are quality-assured by interviews with market actors. Prices and profits are affected when constructors are forced, through parking norms, to build more parking spaces than the customers demand. Parking norms reduce the housing stock by 1.2% and increase rents by 2.4% (SEK 300) in our example suburb.



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