Parking Reform Can Boost Homebuilding 40 to 70 Percent

More evidence that parking flexibility is key to housing abundance.

1 minute read

December 13, 2024, 8:00 AM PST

By Todd Litman


Bird's eye view of empty asphalt parking lot with one blue car.

vladim_ka / Adobe Stock

Making parking fully flexible could unlock more new homes than other land use reforms combined, according to new research out of Colorado that modeled how multiple policies would impact economic feasibility for new housing projects. 

The findings add to a growing body of evidence that making off-street parking optional is a small policy change that can lead to an abundance of new homes. Even though all the buildings modeled in the analysis voluntarily included parking, allowing homebuilders to create less parking made the biggest difference. In fact, building at lower home-to-parking-space ratios than what Colorado cities currently require could result in 40 to 70 percent more homes than are feasible to build today, the study found. 

Parking flexibility yields 71% more homes (https://www.sightline.org/2024/12/10/parking-reform-alone-can-boost-homebuilding-by-40-to-70-percent)
When given the option to maximize projects for housing instead of parking, builders ultimately produce more homes and development becomes more financially feasible. 

“Requiring more parking than the market demands leads to inefficient outcomes,” researcher Ian Carlton explained. “Excess parking takes up space in buildings that could otherwise be housing, adds costs that are seldom offset by revenues, and can determine whether certain types of housing projects fit on sites of various sizes. [Real estate modeling group] MapCraft’s pro forma evaluations capture all three of these factors.” 

Compared to other zoning reforms such as legalizing ADUs or increasing building heights near transit, parking reform proved to be two to three times more effective at boosting housing supply. 

Tuesday, December 10, 2024 in Sightline

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Get top-rated, practical training

Close-up of "Apartment for rent" sign in red text on black background in front of blurred building

Trump Administration Could Effectively End Housing Voucher Program

Federal officials are eyeing major cuts to the Section 8 program that helps millions of low-income households pay rent.

April 21, 2025 - Housing Wire

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

April 23, 2025 - Diana Ionescu

Ken Jennings stands in front of Snohomish County Community Transit bus.

Ken Jennings Launches Transit Web Series

The Jeopardy champ wants you to ride public transit.

April 20, 2025 - Streetsblog USA

Yellow electric school bus with preteen students exiting.

California Invests Additional $5M in Electric School Buses

The state wants to electrify all of its school bus fleets by 2035.

April 25 - Associated Press

City Hall building in Austin, Texas.

Austin Launches $2M Homelessness Prevention Fund

A new grant program from the city’s Homeless Strategy Office will fund rental assistance and supportive services.

April 25 - Spectrum Local News

Brick school building with mid-sized tree on front lawn.

Alabama School Forestry Initiative Brings Trees to Schoolyards

Trees can improve physical and mental health for students and commnity members.

April 25 - Governing