Rethinking Parking Requirements: A Path to Lower Housing Costs

A proposal under consideration in North Carolina, the Parking Lot Reform and Modernization Act (HB 369), would eliminate minimum parking requirements for new developments statewide.

At its core, the issue is simple: parking is not free, and current policies often require more of it than the market would otherwise provide.

Today, local regulations frequently require developers to build a set number of parking spaces for residential and commercial projects. However, each space carries a real cost:

• Surface parking can cost thousands of dollars per space
• Structured parking can exceed $20,000–$30,000 or more per space

These costs are built directly into the overall development budget, and ultimately passed on through rents and housing prices.

Allowing flexibility in parking requirements can:

• Reduce upfront development costs
• Free up land for additional housing units
• Improve the feasibility of workforce and middle-income housing

Importantly, eliminating minimums does not eliminate parking, it allows developers and the market to determine how much is appropriate based on location and demand.

Why this matters for the Charlotte region:

As housing demand continues to grow, reducing unnecessary development costs can help support additional housing supply and improve affordability outcomes.

Policy takeaway for elected officials:

Modernizing parking policies can be a practical tool to reduce housing costs and support new development, particularly in areas near jobs, services, and transit.