Find out how some parking regulations are impacting multifamily developers and residents. 

For more than seven years, cities across the U.S. have been reevaluating parkingminimums, shifting away from rigid off-street parking regulations to foster housing availability and affordability, enhance transit options and promote walkability. This change seeks to address long-standing issues related to land use, sprawl and the significant financial impact on multifamily residents and developers. As this trend continues, operators may face increasing parking challenges. 

The move toward eliminating minimums has sparked a broader discussion on parking reform, centering on its implications for housing costs, parking ratios and urban planning. Regulations for parking minimums had no consistency; the same style of building in two different cities near each other could have vastly different requirements. This system only gave rise to more serious problems regarding housing, and many began realizing the need to prioritize people over parking and taking action. 

Buffalo, N.Y., made the pioneering steps toward abolishing parking minimums in 2017 and was followed a few years later by Minneapolis and San Jose, Calif. The momentum of this trend never stopped, and more than 200 cities, including Austin, Texas, New York, Milwaukee and Dallas have eliminated parking minimums or are actively exploring or implementing parking reform, according to the Parking Reform Network. California stands out as the first state to eliminate minimums near public transit routes in 2023, setting a precedent for statewide policy changes. It’s likely that more states will follow its lead. 

The Impact on Development 

The cost to build parking can run anywhere from $650 to $3,200 per parking space just for materials, depending on factors such as asphalt/concrete and flat surface/parking structure, according to MD Paving Pros. The overall development costs when factoring in labor costs range from $2,000 to $20,000 per parking space. 

The benefit of eliminating minimums is that developers can choose to build more profitable units in that space. Parking is not very profitable, if at all, when taking into consideration the building and ongoing maintenance costs of parking areas. Costs are further reduced by fewer regulatory barriers, which have long been an issue in development delays. This is of course offset by the fact that without sufficient parking, the living experience at a community erodes and ultimately makes that community unattractive.

In theory, residents ultimately benefit from the elimination of parking minimums because they help chip away at the lack of supply and steady housing prices. However, they will run into parking problems as this solves one problem at the expense of increasing another where we are already struggling. Parking management platforms are being tapped in to implement automated parking management to reduce the frustration for teams and residents alike. 

The Benefits to Community and Environment 

Eliminating minimums gives developers the liberty to optimize land use based on actual demand rather than rigid mandates. It also encourages the creation of more housing spaces, contributes to increased walkability and creates more vibrant urban areas. This flexibility allows for the repurposing of space for additional residential units, community facilities or green spaces, enhancing the project’s value and appeal. Unfortunately, some who focus on these benefits may not be those that have to “live with the problem” of an under-parked community.   

Parking reform is closely tied to efforts to reduce car dependency, lower housing costs and promote multimodal transportation options. By decreasing the emphasis on parking, cities can foster more sustainable living environments while simultaneously addressing affordability issues. There are numerous cities and states that still insist on exploring rent control legislation or regulations, an approach that can have the opposite intended effect, actually harming development and exacerbating the problem. When local governments eliminate costly and restrictive mandates for multifamily companies, they encourage development. 

The trend of eliminating parking minimums is a significant shift in how cities approach land use, mobility and housing affordability. By prioritizing people over cars, these changes hold the promise of creating more inclusive, livable and environmentally friendly urban spaces. It encourages alternative transportation methods, contributing to reduced emissions and healthier, more active communities. Where this fails is when a neighborhood does not have ample transportation options. What works in Manhattan simply won’t work in most cities across the country. 

Addressing Concerns and Challenges 

Addressing concerns and challenges surrounding the elimination of parking minimums requires a nuanced approach, recognizing the diversity of urban environments and their unique needs. This is where flexibility for developers comes into play because they may be able to address some housing and services issues within a single building. 

There also needs to be an understanding that the nation simply cannot reduce parking without trading one issue for another. Many residents remain car-dependent and making life more difficult for them has the potential for cities to reverse course on minimums if finding parking becomes a bigger issue. 

 For multifamily, the answer lies in space utilization, which is especially important since people will park their vehicles at their residences more than any other place. Great operators will find solutions to let their residents prioritize this issue and self-concierge to their satisfaction. Multifamily communities need to factor in multiple residents and vehicles in each unit. 

Effective management and utilization of available parking spaces, which frequently change, can be a monumental task for owners, operators and onsite teams. Implementing a third-party vendor that helps set up all the logistics and manages parking in the background will take significant stress off teams and residents. 

Eliminating parking minimums presents a transformative opportunity for cities and multifamily developers, significantly impacting the way residential projects are conceptualized, designed and constructed. It is also changing the way multifamily manages parking. However, with all entities working together, this transformation can help with problems and make life better and easier for everyone. 

 

Kevin Juhasz is a content manager for LinnellTaylor Marketing.