Do Number of Garage Spots VS Parking Spots Affect Home Buyers?
Do Number of Garage Spots VS Parking Spots Affect Home Buyers?
UPDATE 9/4/2024: I have re-analyzed 2024 data and written an updated version of this article here.
I’ve been working with an above-average number of home builders and flippers in Austin lately and many of them have asked me the same question, “Do the number of garage spaces or parking spaces affect a home buyer’s decision to purchase a property?” Ironically, my husband and I have also been trying to decide if it’s worth the (obnoxiously high price of concrete right now) to add another parking spot to our own home in Crestview. Finding myself in a pickle personally and professionally with this question I – naturally – decided to look at the data!
The Data Set
I downloaded sold data for single family homes in North Central Austin in neighborhoods where it’s particularly hard to find even a one car garage or carport (see screenshot of map below). The data spans the last 2 years (730 days back from today, Sept 6, 2018) and for homes sold over $400,000 (to rule out the flips and teardown properties). All together, the data includes just over 1,000 properties.
Please keep in mind, my data is only as good as the realtors who have provided the data. In some instances I had to take liberties to fill in data where it was obviously incorrect. For example, if the realtor put “0” parking spots but “2” garage spots, then there are obviously at least 2 parking spots at this property. Thus, the data for this property was changed to reflect “2” parking spots and “2” garage spots.
Here’s what I’ve found:
Sadly (for the part of me that really wants a second parking spot at my house! haha!), nothing conclusive. Although there is a weak argument to be made that at least one garage or parking spot could help sell a property, I believe there is statistically no number of parking nor garage spots that help a property sell faster or for more money in North Central Austin neighborhoods.
Garage Spots
Let’s look at Garage Spots first since this is likely the most accurate data. Contrary to what most people may believe (and feedback frequently received from homes without a garage), the average days on market (ADOM) actually increased the more garage spaces there were at each property. Additionally, the final sales price compared to the percent change between list and sold price is also inconclusive. There is a small argument to be made that you will sell closer to your original list price with at least one garage space, but not a very strong one. You can see that the number of entries diminishes significantly after 2 garage spaces, and is likely not very reliable if you’re considering a 3+ car garage.
Parking Spots
Next we’ll look at Parking Spots. This includes garage spots, car ports, or a drive way (paved or unpaved). This should not include street parking spots in front of a home. Again, next to no conclusive results! Bummer! There is a small dip in average days on market (ADOM) and percent change in list VS sold price for properties with 1 parking spot. This finding does align with our previous finding that a one car garage could help sellers sell closest to original list price. Although there is also a small dip in ADOM for 5 parking spaces, with only 6 entires it’s not a very accurate conclusion.
Neighborhood Map
Sorry Pemberton Heights… your fancy properties and 2+ car garage averages didn’t make it into the pile.