Multifamily Investors Are Leaving Revenue on the Table: New Report from Neighbor Reveals Large Parking Mispricings

LEHI, Utah, Dec. 12, 2024 /PRNewswire/ -- Multifamily property owners and operators are missing out on billions in untapped revenue by failing to optimize parking prices, according to the Multifamily Parking Intelligence Report. This report contains the largest dataset of multifamily parking prices ever compiled.

The report, leveraging Neighbor's proprietary marketplace data and a survey of hundreds of multifamily properties across 10 major U.S. markets, reveals that parking spaces are systematically underpriced in 8 of 10 markets. This mispricing represents a critical opportunity to boost Net Operating Income (NOI) without increasing resident rents.

"The multifamily sector is under immense pressure," said Joseph Woodbury, CEO of Neighbor. "In a world where record new construction threatens to drive down rents and high interest rates depress yields, operators must rethink their strategies. Ancillary income, like optimized parking revenue, is no longer optional—it's essential. Beyond addressing mispricing, renting parking spaces to non-residents offers a massive untapped revenue opportunity. These strategies can boost NOI without raising rents or risking tenant satisfaction."

Key Findings:

• Missed revenue opportunities: Across surveyed properties, underpricing parking spaces has resulted in an average of $100,000 in missed NOI annually.
• Inconsistent pricing strategies: Across the properties surveyed, parking rates varied by as much as 300% within the same neighborhood, highlighting a lack of pricing strategy.
• Untapped non-resident demand: Renting vacant parking spaces to non-residents is a growing source of revenue, and a strategy for driving free apartment leads.

The Multifamily Parking Intelligence Report highlights the need for property-specific, data-driven strategies.

"Parking optimization isn't just about raising rates—it's about setting the right rates," added Woodbury. "By using hyperlocal data and focusing on resident satisfaction, property owners can balance profitability with tenant retention."

About the Report

The Multifamily Parking Intelligence Report was prepared by Neighbor's research team with insights from industry experts, including Ralph Johnson (National Parking Association's "40 Under 40"), Joseph Woodbury (Founder & CEO, Neighbor), and Fifth Wall (the nation's leading real estate technology investor). The report provides multifamily property owners with actionable data to optimize parking revenue and improve asset performance in 2025.

About Neighbor

Neighbor is the nation's leading peer-to-peer marketplace for monthly parking and self-storage. Since its inception in 2017, Neighbor.com has secured over $75M in funding from top investors, including Andreessen Horowitz, Fifth Wall, and the CEOs of Uber, StockX, and DoorDash.

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SOURCE Neighbor.com