Unbundled parking is parking that is leased or sold separately from a housing unit or commercial lease, so occupants who do not need a space do not pay for one in their rent.
The opposite is bundled parking, where a space comes with the unit whether or not the tenant wants it. Unbundling is sometimes confused with parking cash-out, which applies to employers: workers offered free parking can take its cash value instead.
How it works
- The apartment and the parking space carry separate prices. A household with no car pays only for the apartment; a household with two cars rents two spaces.
- Spaces residents do not take can be leased to other users, which lets an owner build fewer stalls and keep them full.
- Unbundling makes the cost of parking visible, which tends to lower the number of spaces a building needs.
In California
- AB 1317 (2023) requires buildings of 16 or more rental units, certified for occupancy since January 2025 in ten counties including Los Angeles, to lease parking separately from rent. Tenants get first refusal, and unused spaces may be leased month to month to other residential users. Fully affordable and tax-credit projects are exempt.
The Parkonomics view
Unbundling turns parking from a hidden cost into a price, and prices change behavior. Owners who unbundle learn how many stalls residents will actually pay for, which is the best evidence there is for how many to build next time.
Related terms: Parking Minimums, Shared Parking, Monthly parking, Parking Ratios., Parking Cash-Out
Further reading: The Zoning Arrives Before the Train, Santa Monica’s Height Fight Is a Parking Fight, The Multifamily Gap