The Opportunity Cost of Surface Parking in Downtown Winnipeg

Abstract

The provision of parking is a necessary land use in any city. However, there can be a point at which there is too much parking. Such may be the case in Downtown Winnipeg. The excessive amount of parking in the downtown may represent a high opportunity cost in the form of lost tax revenue. Measurement of lot usage indicated that contrary to popular belief, there is parking available in Downtown Winnipeg, even during peak parking periods. The revenue generated by these lots is sufficient to cover costs, event turn a profit, but the value of the land would be significantly higher if it were occupied by buildings. In this case study, I predicted that property values for the sites with the parking would be higher than for those without. This ultimately proved not to be the case, with no significant difference between the two. The implications of these findings are discussed, followed by suggestions for meeting the need for parking in Downtown Winnipeg.