3. NPH Analysis of Bay Area
Development Costs
a. Overview
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Introduction |
As part of this research initiative, NPH analyzed development conditions in
the region to better assess the impact of parking requirements on housing
development costs. While all development scenarios have unique
circumstances, it is useful to explore how different development conditions
interact with parking and development costs. The whole analysis is
available in an Excel Workbook - Development Cost
Estimations, however, the assumptions and results are summarized below |
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Purpose of this Section |
To communicate how parking impacts development costs and
density |
| To provide an analytical tool to see how development
conditions and parking requirements interact to impact costs and density |
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Conclusions |
Parking requirements impact development costs most
significantly in higher density and higher land cost areas. |
| As parking increases, development is less expensive in
lower cost, lower density areas. Lower parking requirements in dense
settings can make infill development more feasible. |
| In medium to high cost areas, an increase of one parking
space per unit can reduce density between 15 and 25% |
b. Assumptions for Development
Analysis:
Urban
- High Land Costs and Density
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Urban
- Medium Land Costs and Density
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| Zoning |
Zoning |
Height in Stories
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8
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Height in Stories
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4 |
| Percent Lot Coverage |
80%
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Percent Lot Coverage |
70% |
| Land Cost (per sq. ft) |
$95.00 |
Land Cost (per sq. ft) |
$60.00 |
| Construction Cost (per sq. ft) |
$125.00 |
Construction Cost (per sq. ft) |
$110.00 |
| Parking Method |
Parking Method |
| Percent in Structure |
100% |
Percent in Structure |
100% |
| Percent in Surface Lot |
0% |
Percent in Surface Lot |
0% |
| Parking Space Construction Costs |
Parking Space Construction Costs |
| Structure |
$22,500 |
Structure |
$15,000 |
| Surface |
$5,000 |
Surface |
$5,000 |
| Average Unit Size (sq. ft.) |
800 sq. ft. |
Average Unit Size (sq. ft.) |
900 sq ft. |
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Suburban
- Medium Land Costs and Density
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Suburban
- Low Land Costs and Density
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| Zoning |
Zoning |
Height in Stories
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3 |
Height in Stories
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2 |
| Percent Lot Coverage |
40% |
Percent Lot Coverage |
30% |
| Land Cost (per sq. ft) |
$30.00 |
Land Cost (per sq. ft) |
$15.00 |
| Construction Cost (per sq. ft) |
$90.00 |
Construction Cost (per sq. ft) |
$90.00 |
| Parking Method |
Parking Method |
| Percent in Structure |
50% |
Percent in Structure |
100% |
| Percent in Surface Lot |
50% |
Percent in Surface Lot |
0% |
| Parking Space Construction Costs |
Parking Space Construction Costs |
| Structure |
$15,000 |
Structure |
$15,000 |
| Surface |
$5,000 |
Surface |
$5,000 |
| Average Unit Size (sq. ft.) |
1,000 sq ft. |
Average Unit Size (sq. ft.) |
900 sq ft. |
c. Results of Development
Analysis
 
To see more results and change the development conditions assumptions,
download the Excel
spreadsheet here.
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