One of the biggest expenses in a development is the big dig for the parking garage. Not only the initial capital outlay is large but the ongoing condo fee paid by residents is a drain on their cash flow. Resale values of condos is affected by the size of the condo fee, therefore condo boards like to try and keep the fee low which means that can might corners on maintenance. This leads to the big lump sum demanded of condo owners 15 – 20 years down the road when the garage needs fixing.
Some developers are recognizing that there is a large enough market for condos with no parking garage. The benefit is a less expensive construction leading to a lower purchase price (same margin for developer though) and a lower ongoing condo fee for the owners.
City research shows that in the area of the old city of toronto, 34% of households do not own a car. (page 6) That’s a big number. Further support shows that Millennials are less likely to get driver’s licences than other demographics and make more trips via transit, walking or biking.
The point is we have to consider that some developments are better off without a parking garage at all. Not everybody drives, if you don’t have a licence the likelihood of buying a car is zero. There is a market for condos without garages in the right places where transit, cycling and walking are well supported.
Click here to see the walkability, bike-ability and transit scores for 838 Broadview.