The average monthly price for parking at a multifamily property varies widely from the market rate for commercial parking in many major U.S. markets, and is often significantly lower, according to a report by storage and parking marketplace Neighbor.
Out of a representative sample of properties that charge for parking, only one metro — Washington, D.C. — has a higher average monthly cost for multifamily parking than commercial parking for both covered and uncovered lots, 5% and 3% higher respectively.
Denver, Los Angeles and Miami have the largest discrepancies between the multifamily and market rate at uncovered lots, up to a 753% difference in Miami — $20 monthly for multifamily parking compared to $170.67 monthly for commercial parking. For covered parking, Phoenix has the widest gulf between multifamily and commercial rates at 435%, followed by Miami at 312%.
Average monthly parking costs in 10 major markets
| Market | Multifamily parking cost (uncovered) | Commercial parking cost (uncovered) | % Change | Multifamily parking cost (covered) | Commercial parking cost (covered) | % Change |
|---|---|---|---|---|---|---|
| Denver | $56.00 | $111.44 | 99% | $59.72 | $226.24 | 279% |
| Los Angeles | $61.33 | $169.56 | 176% | $77.59 | $229.66 | 196% |
| Miami | $20.00 | $170.67 | 753% | $53.13 | $218.86 | 312% |
| New York City | $305.22 | $245.06 | -20% | $268.30 | $397.95 | 48% |
| Phoenix | $32.50 | $86.93 | 33% | $30.93 | $165.39 | 435% |
| Salt Lake City | $39.00 | $62.26 | 60% | $41.35 | $133.62 | 223% |
| San Diego | $160.00 | $169.64 | 6% | $71.13 | $229.84 | 223% |
| San Francisco | $362.50 | $176.15 | -51% | $153.61 | $333.81 | 117% |
| Seattle | $103.50 | $164.69 | 59% | $138.94 | $239.96 | 73% |
| Washington, D.C. | $140.00 | $132.45 | -5% | $220.52 | $213.85 | -3% |
SOURCE: Neighbor
Based on this data, Neighbor estimates that a property in Los Angeles that raises parking pricing to 50% to 70% of the market rate could increase its annual net operating income by up to $63,000.
“With market data and clear frameworks for optimizing parking at the property level, operators can maximize NOI, enhance property value and maintain resident satisfaction,” the report reads.
The average price data set excludes properties that do not charge for parking. Thirty-four percent of the surveyed properties offered some form of free parking, and approximately 15% did not charge residents for their first parking space.
Forty-two percent of the properties in the sample set reported offering electric vehicle charging for their residents, while 30% did not and 28% did not provide any data. Out of the properties with EV charging, only 38% said they charge a monthly fee for it. Thirteen percent said this charging was completely free to residents, while 36% only required residents to pay third-party fees.
While the data does not show any correlation between parking prices and property vacancy rates, the report cautions against raising parking prices without regard for competitive dynamics, tenant purchasing power at a given property, the ratio of parking cost to rent or other amenities available at the property, including EV charging.
“If resident turnover is a concern or local regulations prohibit rent changes mid-lease, a multifamily owner could … only increase parking prices for new residents and keep existing residents locked into the previous rates,” the report says.
