NAA: Parking Demand Declining
ARLINGTON, VA – The National Apartment Association (NAA) is pleased to announce the release of “The Transformation of Parking,” an original report examining demand, cost and rent premiums and how these factors are changing the way the rental housing industry views parking.
“Urban revival is leading to a reduction in the need for parking, with electric vehicles, autonomous cars and the rise of the sharing economy—rides, bikes, scooters—affecting demand,” NAA President & CEO Robert Pinnegar, CAE, said. “However, parking is not going away overnight. It is important for community developers, owners and operators to be flexible and help their residents navigate all forms of transportation while addressing it in their business plans. They otherwise might find themselves missing operational efficiencies and opportunities to maximize revenue sources.”
The ratio of parking spots per unit has been declining for about a decade, with Miami witnessing the largest decline because of the elimination of minimum parking requirements, although a handful of markets, led by Nashville, saw a slight increase.
The types of structure have also changed, with multi-level parking structures rising due to lack of available land, and many of those new structures also include charging stations for electric vehicles. Parking structure costs also drive up the price of construction, with a hefty price tag that ranges from $30,000 to $75,000 per space, which negatively affects housing affordability.
Changes in parking can also affect what residents pay. Indianapolis residents pay the highest premiums for parking while San Franciscans pay the lowest due to public transportation and rates of car ownership. Other cities paying a higher premium for parking include Houston, Orlando, Philadelphia and Chicago.
As the demand for parking changes, some people are looking toward the future and designing parking that can easily be converted to other uses, while others are putting more emphasis on managing demand rather than managing supply. Some communities are even putting real-time arrival and departure boards for subways, buses and commuter trains in their lobbies while also offering discounted public transit passes.
The National Apartment Association (NAA) serves as the leading voice and preeminent resource through advocacy, educationand collaboration on behalf of the rental housing industry. As a federation of nearly 160 affiliates, NAA encompasses over 78,000 members representing more than 9.3 million apartment homes globally. NAA believes that rental housing is a valuable partner in every community that emphasizes integrity, accountability, collaboration, community responsibility, inclusivity and innovation. NAA thanks its strategic partners the Lowe’s Companies, Valet Living and Yardi. To learn more, visit www.naahq.org.