The $1 Million Parking Space Arrives

In some parts of the country, a single parking spot costs up to three times as much as the average home. Find out why.

The $1 Million Parking Space Arrives Photo (cc) by ell brown

The average sale price of a home in the United States was about $334,000 during the second quarter of this year, according to the latest data from the U.S. Census Bureau.

But in some parts of the country, a single parking spot costs up to three times as much as the average home, the Wall Street Journal reports.

The trend of parking spots being listed for more than the average home sale price is picking up in population-dense cities where parking space is becoming increasingly scarce.

For example, in San Francisco — which by some measures has surpassed New York to become the most expensive city in which to buy a home — part of the issue is a recent change in city regulations.

Alan Mark is chief executive of San Francisco-based The Mark Co., which handles sales and marketing for condominium and apartment buildings. He tells the Wall Street Journal that the maximum number of parking spaces allowed in many central locations has decreased from one per residential unit to one-half per unit.

The price for a parking space in San Francisco now ranges up to $125,000, compared with $40,000 to $70,000 several years ago, Mark says.

In Manhattan, at least two developments now have parking spaces listed for as much as $1 million apiece.

One of those developments is 15 Renwick in Manhattan’s Soho neighborhood. It has three parking spots priced at $1 million each, the Wall Street Journal reports:

Tim Crowley, director of new development at Core, which handles marketing for 15 Renwick, says parking is priced at a premium because developers hope the spots will be sold with the building’s two penthouses, priced between $7 million and $11 million.

Are you surprised that parking spaces are priced for more than the average home? Do you think developers will actually get the $1 million asking price? Let us know what you think below or on Facebook.

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