Could Getting Rid of Parking Spots Solve Denver's Housing Shortage?

It’s a question cities across the country are asking: how do we build more homes? In Denver, a new study suggests one surprising answer might be to get rid of mandatory parking spots.

A recent simulation-based study found that eliminating minimum parking requirements could boost housing construction in the city by 12.5%. That's not just a number; it translates to roughly 460 new homes every year.

This information comes from a report by Homes.com, which covered the study from the University of Denver.

A Data-Driven Decision

The study, co-authored by Stefan Chavez-Norgaard, came at the perfect time. The Denver City Council was in the middle of debating this very issue. As Chavez-Norgaard noted, the study helped make it a "data-driven conversation" about the real-world impact on new housing.

In August, the city officially made the change. Denver no longer requires new or expanded developments to provide a minimum number of off-street parking spaces.

According to city officials, the development community has responded well. They now have the flexibility to decide how much parking a new project actually needs, rather than following a one-size-fits-all mandate.

How the Study Worked

So, how did they get that 12.5% number?

The team at the University of Denver, in partnership with Terner Labs from UC Berkeley, used a sophisticated data simulator. They fed it all kinds of local data: land values, building costs, interest rates, and Denver's specific zoning rules.

Then, they ran simulations to see how changing one variable (parking minimums) would affect the construction of multifamily housing like apartments, condos, and townhouses.

Susan Daggett, another co-author, explained the goal was simple: "It's really about whether or not a particular policy change is likely to affect the production of housing."

The Real-World Impact

The study shows that when developers aren't forced to build parking, they won't build it in excess. "If excess parking is not built," Daggett said, "then it frees up land and it frees up capital to build more units."

This is a huge win for smarter urban planning. Instead of wasting space and money on asphalt lots that sit empty, developers can use that land for things people actually want, like more housing, small parks, or trees.

This change is especially good for historic neighborhoods and older downtown buildings. In the past, redeveloping these properties was often impossible because there was no way to add the required parking. Now, these buildings have a new shot at life.

While some residents worry about where everyone will park, city officials noted that many developers were already building more parking than the minimum required. The change just gives them the freedom to build based on demand, not on an outdated rule.

This blog post is based on findings reported by Elisabeth Slay for Homes.com.