UCLA Analysis Highlights Soaring Costs of Parking Mandates in US Cities

A recent analysis by Ellen Schwartz of the UCLA Center for Parking Policy reveals that parking mandates significantly inflate construction costs across 17 U.S. cities, based on 2025 data. The study, "No Such Thing as Free Parking," indicates that underground parking now averages $73,000 per space, while aboveground parking costs $52,000, representing a roughly 50 percent increase since 2012 after adjusting for inflation. This surge is attributed to rising labor and material costs, alongside new regulatory requirements like seismic standards and EV charging mandates.

The findings highlight that residential parking mandates disproportionately impact smaller homes, increasing studio and one-bedroom apartment construction costs by over 30 percent. For instance, Los Angeles's 1.5 parking space minimum for one-bedrooms adds approximately $97,000 to an apartment when built underground, a 31 percent increase to the unit's construction cost. This dynamic discourages the development of smaller, more affordable housing units.

For commercial properties, parking minimums can raise office building construction costs by an average of 68 percent for underground facilities and 47 percent aboveground. Miami is cited as an extreme example where high parking minimums can more than double total office construction costs. The analysis suggests that repealing or reducing off-street parking minimums and reforming per-unit residential ratios are crucial steps for cities to foster more affordable housing and viable commercial centers.