Do Parking Maximums Deter Housing Development?

Abstract

Local governments often see parking as an essential amenity to maintain competitiveness. Restrictive parking policy, therefore, could potentially deter investment and local development. This study examines the effect of residential parking restraints on multifamily housing supply in London, United Kingdom. We find that the effect varies with car ownership and usage levels. Restrictive parking maximums are associated with fewer multifamily housing developments in outer London but more developments in inner London, most of the latter being car-free developments. These results suggest that parking maximums may help restore the attractiveness of inner cities and promote smart growth.