Lower Parking Requirements Will Make Housing More Affordable

In most parts of the world, parking is either free or highly subsidised. Actually, the cost of parking is high, greater than all other costs associated with automobile ownership put together. In fact, in the long run, the cost of parking is greater than the cost of the car, of fuel and maintenance, put together.  Still, we do not see parking as a major cost. This is because even though the cost of parking is huge, the price of parking is not. Parking is virtually free. The annual price of parking in Connaught Place or Khan Market is negligible when compared to the price you may have to pay to rent 23 to 28 sq m space.

In Nagpur, the urban development department has decided to reduce parking requirements. According to the 2001 Development Control Rules, in Nagpur, a flat over 80 sq m should have parking space for one car, two two-wheelers and two bicycles. Nagpur Municipal Corporation proposed that a flat over 150 sq m should have a parking space for three cars, two two-wheelers and two bicycles. The urban development department recently lowered this to two cars for a flat of over 150 sq m, and one car for a flat between 100 and 150 sq m.

Some claim that this is because developers have lobbied with the Maharashtra government to cut down parking spaces. But forcing developers to build more parking spaces will increase the cost of housing, even for people who do not own automobiles. Many developers claim that real estate development has virtually come to a halt in the past two years because of unreasonable parking requirements. So, this will make housing beyond the reach of people who cannot afford parking spaces. Free parking will also encourage more people who otherwise would not be willing to pay for parking to drive to work, consuming expensive real estate at the expense of everybody else. A restaurant that is expected to build parking spaces will be compelled to charge a lot more for food, for example. Similarly, when parking space requirements are large for office buildings, this reflects in lower salaries and cramped workstations.

Many residents of Nagpur claim that if developers do not build parking spaces, people will park in public places. They say that families that have more than one car, park them on the roadside, leading to traffic congestion. This is, of course, problematic. But this will not be a problem if people are not allowed to park in public spaces.

If parking is seen as a service which people should pay for, as they pay for office space or residential real estate, the absence of free parking will not be a problem. This will also lower crowding in central areas of cities because people will cut down unnecessary trips if they are expected to pay for parking. This will also prevent people for cruising for free parking, leading to longer commute times and road congestion. Private providers of parking will emerge, and private provision of parking will turn out to be as profitable a business as any other.