Building a single parking spot can easily cost more than many Americans’ life savings. In the latest issue of Access Magazine, retired UCLA economist Donald Shoup brings this point home to illustrate the huge financial burden imposed by minimum parking requirements, especially for poor households.
The average construction cost of structured parking, across 12 American cities, is $24,000 for an above-ground space and $34,000 for an underground space. (Surface parking spaces are cheaper, but keep in mind those prices don’t include the cost of purchasing land.) Those costs get bundled into the price of everything, driving up the cost of living even for people who don’t own cars.
The burden of parking requirements, which mandate the construction of parking spaces that otherwise wouldn’t be built, is most acute for people of color.
In 2011, the average net worth of Hispanic households was $7,700 and of black households was $6,300, Shoup notes. Thanks to parking requirements, households without much savings — many of whom have more debt than assets — must contend not only with the cost of parking construction, but the cost of car ownership as well, writes Shoup: