In Metro Vancouver, the cost of residential parking is significantly impacting housing affordability. The region's high parking requirements for new developments, which are often greater than the demand according to a recent article published by Storeys, can add between $40,000 to $50,000 to the cost of each housing unit. A study by Urban Development Institute (UDI) Pacific Region found that in some cases, the parking stalls are not being used by residents, leading to wasted resources and increased housing prices.

The UDI suggests that municipalities should adjust parking requirements to better match the actual demand, which varies depending on the location and access to transit. In areas with high transit accessibility, the demand for parking is lower, and thus the requirements should reflect that. The study also found that parking demand is overestimated in municipal policies, with actual usage being 42% lower in transit-accessible areas.

In lieu of providing the required amount of parking, many governments have policies around transportation demand management (TDM) that require developers to make transportation-related contributions in other ways, whether it be subsidizing transit passes for residents, including bicycle facilities, or providing car sharing on-site. For developers, it then becomes about finding the right balance between TDM contributions and how much parking to provide.

In June 2024, Vancouver City Council voted in favor of removing minimum parking requirements across the city, joining the growing list of North American cities that are changing their beliefs and mandates around parking which often result in developers having to construct large underground or above-ground parkades, adding to the cost of projects and potentially making them less viable, all while the need for parking continues to reduce as a result of improving public transportation and rising popularity of multimodal transportation alternatives like bicycling, ride-sharing, and walking.

The UDI's report recommends that municipalities adopt more flexible parking policies, such as shared parking strategies and unbundling parking from housing units, allowing residents to choose whether to pay for parking. Additionally, the report suggests that parking requirements should be based on data-driven analysis to ensure they meet the actual needs of residents.

The cost of constructing parking can also be reduced by using more efficient designs, such as mechanized parking systems, which can save space and money. However, these systems are not always feasible due to their high upfront costs and maintenance requirements.

The UDI's findings indicate that reevaluating parking requirements could lead to more affordable housing in Metro Vancouver. By aligning parking policies with actual demand and exploring innovative parking solutions, municipalities can help reduce the financial burden on residents and contribute to the development of more sustainable and affordable communities.

Minimum parking requirements are increasingly being reconsidered across North America.

Related Content:

Vancouver Eliminates Minimum Parking Requirements for All Land Uses City-Wide, Joining the growing list of North American cities that are changing their beliefs and mandates around parking – Storeys, June 2024

How Minimum Parking Requirements Affect Industrial Development, Minimum parking requirements are usually discussed as they relate to residential development, but industrial developers think it's an issue as well – Storeys, November 2023

Toronto Removes Parking Minimums for New Residential Developments, Sending a message that cars are taking a backseat in Toronto planning – Storeys, December 2021