In Boston, where real estate prices have soared, a parking space can be just as expensive as a house. In the upscale neighborhood of Beacon Hill, some residents have paid upwards of $500,000 for a spot in the prestigious Brimmer Street Garage.
Real estate agent Betsy Herald has sold three parking spaces in the garage in the past year, each for around $500,000. She says that her clients, many of whom live in lavish homes with limited parking, don’t bat an eye at the cost. “If you’re purchasing a house at that level, to add in $500,000 for that parking convenience is really not that shocking,” said Herald, who works with The Charles Realty.
Parking spot sales aren’t always easy to track, as they’re often included in condo or home sales, making their value unclear. However, when the true cost is revealed, it provides a stark indication of how expensive the Boston housing market has become.
According to Herald, parking spaces are a piece of land, and the value of land in Boston is significant. “If you took that parking space and multiplied it by 20, you have a developable piece of land in Boston, which is worth a significant amount of money.”
The Brimmer Street Garage, which was once used to house horses and carriages, now offers round-the-clock valet service, detailing, cleaning, and gas fill-ups for its residents. It’s a level of convenience that many residents are willing to pay for.
The high cost of parking spots is not just limited to Beacon Hill. In the Back Bay, a couple received a $750,000 offer for a parking space in 2022. And Beth Dickerson, a realtor for Gibson Sotheby’s International Realty, is currently selling an outdoor, parallel parking space on Beacon Street for $350,000.
The high cost of parking spots is a reflection of the competitive Boston real estate market. For high-end property owners, buying a parking spot could be a good investment, as property values have appreciated, so have the cost of parking spots.
Roshan Fernandez, a reporter for The Boston Globe, says that the high cost of parking spots is a sign of Boston’s white-hot real estate market. “Some Boston realtors say these parking spots are indicative of the city’s white-hot real estate market, which can stun outsiders.”
When Herald was getting started as a realtor in Boston more than two decades ago, there was a parking space behind her Newbury Street office up for sale for about $15,000. “I thought ‘That’s insane,’” she said. “I don’t have that kind of money.”
She’s rented it ever since for about $500 a month. It’s now worth about $400,000, she estimates. “I would have easily paid it back and had increased equity,” she said with a laugh. “So it would have been one of the best financial decisions in my life.”
Fernandez concludes that the high cost of parking spots is a glimpse into the extreme costs associated with urban living in Boston.
