The Impact of Parking Policy on House Prices

Paid parking is the recommended policy tool to deal with cruising for street parking. In the Netherlands, residents receive parking permits when paid parking is introduced, to increase their political support. We estimate the effect of this policy on residents by examining the effect of the introduction of paid parking on house prices for Amsterdam and Utrecht during a period of 30 years. We find no effect of this policy on house prices. This finding is consistent with the idea that residents only vote in favour of a local policy when it has no negative impact on their house prices.