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There may have been a time when on-site parking added value to a property, but it’s no longer as important as it used to be. As a matter of fact, a wave of parking-free housing developments has taken over the country’s major cities.
- Lower costs
Cities typically require developers to build one to two parking slots per unit. Each slot in a city garage can cost thousands of dollars to build, and hundreds to maintain every year. This drives up the cost of construction, forcing real estate developers and investors to raise housing unit prices.
Doing away with on-site parking can lower construction costs by as much as 20 to 30 percent. And since parking-free developments aren’t constrained by the financial burdens of parking requirements, developers can offer units at more affordable prices. They can also invest in other features like shared amenities.
- Relaxed parking requirements
A few major cities have relaxed their parking requirements to address the excess supply of parking spaces, minimize congestion, and control urban sprawl. Some cities also intend to convert existing parking to alternative use.
There are designated areas or “urban villages” with special zoning rules that allow developers to construct only a small number of parking slots or forego on-site parking altogether.
- Other land use
There are major cities that intend to convert existing car parks into alternative land use. Parking spaces and structures hold a lot of potential for large-scale redevelopment projects that the public can benefit from.
This trend is part of the reason parking-free projects have gotten so much attention. They maximize land use. Developers are able to construct more living spaces and amenities because they don’t have to sacrifice housing units for car slots.
- Demand
Cities have also had to reconsider their parking requirements because of the growing demand for parking-free apartment buildings. And it’s not just home buyers and renters who want affordable housing – these developments are also attracting buyers from the luxury market, and waiting lists are fairly common. The demand exists even in auto-centric cities like L.A. and Miami.
- Public transportation
Parking-free housing is more cost-efficient in areas where there’s reliable public transportation, as well as neighborhoods that enjoy close proximity to rail stations. Buyers and renters who don’t own cars and prefer to commute have no problem living in apartment buildings without on-site parking.
- Walkability
Neighborhoods that boast safe environments, wide and clean sidewalks, and excellent overall planning tend to have high walk scores. Living in these pedestrian-friendly areas gives residents little incentive to own cars, thus eliminating the need for on-site parking.
- Alternatives
Curbside parking is one alternative to on-site parking. Car owners who wish to rent or purchase units in parking-free developments can park at curb spaces within six blocks of their apartment buildings. Nearby garages may also be rented overnight, on a monthly basis, and sublet to tenants.
Some developers have also constructed on-site bicycle parking and bikeshare stations instead of car slots so that tenants have the option to cycle to work
Here’s why:
If you’re looking for apartments with or without on-site parking, feel free to search Lambert Investments Inc.’s listings.
