Bundled Parking and Travel Behavior

Abstract

Driving has a host of known negative consequences, including traffic congestion and pollution, that planners and policymakers often aim to mitigate by encouraging people to use alternative modes of transportation or through disincentives such as gas taxes and tolls. The housing practice of “bundled parking” does the opposite, actively encouraging driving by including the cost of a parking space in the rent or sales price of a unit and presenting it as “free.” Bundled parking obscures the true cost of vehicle ownership and use and makes driving much easier by reducing the time and energy associated with finding a place to park. This study finds that bundled parking is associated with a 27-percent increase in vehicle miles traveled. Households with bundled parking drive approximately 3,800 more miles per year. Additionally, households with unbundled parking are significantly more likely to be frequent transit users.

About the Project

California has dual policy goals to reduce vehicle dependency and make housing more affordable. Parking requirements can hide the cost of storing a vehicle in housing costs, making driving seem to be a more attractive option for vehicle owners than using alternative modes of transportation.While researchers have already identified the link between driving behavior and bundled parking, no study has studied this link using a national-level data set that includes detailed data on a household’s travel behavior and whether that household’s housing cost includes parking. In this study I will use data from the 2013 American Housing Survey to determine whether the presence of bundled parking influences a household’s transportation mode choice. I hypothesize that the presence of bundled parking will reduce vehicle use. This provides further evidence for the already strong case against parking requirements.