Reduced parking requirements for qualifying developments

Most cities, towns, and counties establish in their zoning code a minimum number of off-street parking spaces that must be created for each unit in a new residential development, such as 0.5 parking spaces per bedroom. The purpose of parking requirements is to ensure that new residents have a dedicated place for their vehicles, and to avoid negative spillover effects on public parking in the surrounding area.

However, there are many circumstances where a one-size-fits-all parking requirement may result in an excess supply of parking spaces, including for residents of affordable housing, who tend to have fewer vehicles per household, and in higher-density neighborhoods where many transportation needs can be met by public transit. Parking requirements can make housing more expensive to produce, as fulfilling this requirement can be costly, particularly when land prices are very high or where expensive underground parking or parking structures are needed to accommodate the required number of spaces. By reducing parking requirements for qualifying affordable developments, cities, towns, and counties can help to ensure the amount of parking provided aligns with actual needs, freeing up resources that can be used to lower home prices and rents and space for additional units and/or amenities.

Cities, towns, and counties considering reductions in parking requirements for qualifying affordable developments should structure their zoning codes in response to local conditions and community goals. In this section we review a number of the factors that should be addressed in developing and implementing reduced parking requirements for qualifying developments.

Approach

There are a variety of ways to reduce parking requirements for developments that meet affordability requirements. Local jurisdictions can reduce the number of spaces required per unit, bedroom, or square foot; fully eliminate parking requirements for qualifying developments; or allow developers to demonstrate appropriate parking supply through a transportation management plan, parking study, or case-by-case administrative review.

See the related discussion on reducing parking requirements for all new residential development to learn more about specific approaches.

When making revisions to parking requirements, cities, towns, and counties should consider seeking feedback early in the process from a broad range of stakeholders, including transportation planners and engineers, representatives of the local transit authority, and for-profit and non-profit housing developers and managers. Additional analysis to determine actual vehicle ownership rates by income level, age of household head, and household size, as well as proximity to and availability of public transit and actual parking utilization rates may help to inform policy development and ensure requirements reflect local circumstances.

Eligibility

Cities, towns, and counties will need to establish clear criteria regarding eligibility for reduced parking requirements. The zoning code should specify the share of units in the development that must be affordable, and to what income levels, to qualify for the reduction. It should also specify whether there are any requirements for how long the units must remain affordable.

In some cases, linkages between reduced parking requirements and other affordable housing programs will determine the answers to these questions. For example, some cities, towns, and counties waive parking requirements completely for federally funded public housing. Access to reduced parking requirements may also be offered as a cost offset for a local inclusionary zoning program. The requirements for these programs can then be used to determine income levels and other eligibility factors.

When a reduction in parking requirements is offered as a standalone benefit, however, cities, towns and counties will need to determine the affordability thresholds that are most likely to achieve community goals and satisfy local concerns.

Provisions may vary for housing serving different types of populations. Seniors and people with disabilities, for example, often have lower vehicle-ownership rates than other household types. Parking requirements for affordable developments serving these populations could potentially be set at a lower level than requirements for affordable developments serving families with children.

Cities, towns, and counties will also need to specify whether eligibility for reduced parking is available in all geographic areas within the jurisdiction or only in specified zones. Some jurisdictions may wish to limit eligibility to mixed-use neighborhoods where amenities are easily accessible without a car and areas that have good access to public transit, defined by proximity to train stations or bus stops, frequency of service at those stations and stops, and other factors determined in consultation with the local or regional department of transportation. Localities may also wish to consider the availability of alternative modes of transportation, such as bike- or car-sharing stations or shuttle or paratransit service for senior residents and people with disabilities.

Other considerations

State-level policies

Some states have passed legislation that reduces parking requirements for qualifying affordable developments. (California, for example, passed legislation to ease parking requirements for affordable housing for seniors, people with special needs, and low-income and very low-income people.) Local jurisdictions should be familiar with state-level policies before adopting their own reductions in parking requirements.

Examples

California is a leader in state-level policies reducing parking requirements. AB 2097, enacted in 2022, generally prohibits local governments from imposing minimum automobile parking requirements on many development projects within one-half mile of a major transit stop, with certain exceptions. Learn more about California’s state-level policies.

Colorado has also recently enacted reductions in parking requirements for qualifying developments. HB24-1304, enacted in 2024 and effective in 2025, prevents local governments from enforcing minimum parking requirements for residential developments near frequent transit spots in Colorado’s urban areas. Local governments may impose a minimum only in limited circumstances. Learn more about Colorado’s parking reform.

Chattanooga, TN’s Voluntary Incentives Program waives certain zoning requirements for multi-unit developments that include rental housing attainable to low- and moderate-income households. Among these incentives are reduced parking minimums, which, when paired with density and height bonuses, provide strong incentives for projects to include the required 10% of affordable units.

Boise, ID’s zoning code outlines parking reduction incentives for new construction near transit, for Accessory Dwelling Units, and for adaptive reuse projects. The code also includes a parking reduction incentive for projects that preserve healthy trees on site in an effort to preserve and grow the city’s tree canopy.

Related resources

• Parking Policy is Housing Policy, Regional Plan Association (2022) – Explains how parking mandates affect housing production and affordability.

Policy design and implementation

• Right Size Parking Model Code, King County Metro Transit (2013) – Presents a model parking code that includes adjustments for resident characteristics related to income level

Parking requirements and housing affordability

• Parking Requirement Impacts on Housing Affordability, Victoria Transport Policy Institute (2016) – Analysis of actual vehicle ownership rates and how current residential parking requirements impact housing affordability and lower-income households. Includes alternatives to current parking requirement models.
• Parking the Minimum Parking Requirement: Evidence from Nine U.S. Cities, Journal of Planning Education and Research (2025) – Examines how parking supply changed in nine U.S. cities after minimum parking requirements were removed in different contexts. Study gives useful evidence for jurisdictions deciding whether and how to reduce or eliminate parking mandates.
• Searching for the Right Spot: Minimum Parking Requirements and Housing Affordability in New York City, NYU Furman Center (2012) – Examines how parking regulations affect developers’ decisions about what to build, explores the effect that the parking requirements may have on housing affordability, and highlights some options for reform.

General resources

• Shifting Gears: Why Communities Are Eliminating Off-Street Parking Requirements, Lincoln Institute of Land Policy (2022) – Expansive study on why communities are reforming parking mandates. Describes some of the problems that parking requirements can cause, including inflated housing costs, administrative burdens, and growing sprawl.
• Parking Reform Map, Parking Reform Network – This interactive map tracks jurisdictions that have adopted parking reforms, including policies that reduce or eliminate minimum parking requirements, apply parking maximums, or target reforms to specific areas, land uses, and transit rich locations.

See the related discussion to learn more about specific approaches.

Cities, towns, and counties can also reduce parking requirements for ALL housing units, helping to lower development costs and to increase the overall supply of units in the market. Access a description of this broader policy option: Zoning changes to facilitate the use of lower-cost housing types.