Policy Minute: Eliminating Minimum Parking Requirements
New York City zoning laws require minimum off-street parking in many areas, which often results in an oversupply of parking spaces where market demand for off-street parking is relatively low. These mandates increase development costs, reducing the feasibility of new housing projects and ultimately limiting the supply of housing.
The New York City Council is currently considering the Department of City Planning’s City of Yes for Housing Opportunity (COYHO) zoning reform proposal, and is set to vote on the proposed changes by the end of the year. COYHO is aimed at easing New York City's housing shortage by updating zoning regulations to encourage more housing development across the city. These provisions include implementing the Universal Affordability Preference (UAP), making office to residential conversions more feasible, allowing accessory dwelling units, and encouraging transit-oriented development.
One proposed provision of COYHO that has been a source of controversy is eliminating minimum parking requirements in residential developments. While proponents of the measure argue that it will encourage housing supply and contribute to the city’s climate goals, opponents worry that it will lead to a dearth of parking in neighborhoods with poor access to transit.
From an economic perspective, this type of regulation distorts market outcomes and risks misallocating resources by prioritizing parking over housing. Eliminating these mandates allows developers to respond to actual demand, thereby lowering development costs along with the opportunity cost of the space provided. As shown in the map below, many community districts have low rates of car ownership, and eliminating parking minimums would put the onus on developers to calibrate parking amenities to local demand. Conversely, in neighborhoods with higher rates of car ownership, developers, in order to be competitive, would likely meet demand by offering parking as an amenity. By allowing developers to provide parking according to local demand, the elimination of parking minimums would encourage greater housing production, helping to address the city's housing shortage.