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parking-minimums(16)
November 9, 2021

Toronto to eliminate parking minimums

https://twitter.com/donnelly_b/status/1457700400417619975?s=20

For the last year or so the City of Toronto has been doing a review of parking requirements for new developments. This would include things like how much car and bike parking needs to be provided for each residential unit in a new building. More information on this work can be found here.

City staff are now preparing to release their initial findings and, as I understand it, it is going to include the removal of most minimum parking standards across the city and the introduction of some maximum parking standards. What this should mean is that in most cases you can build as little parking as you want, but in some cases you'll be stopped from building too much of it.

There are lots of examples of other cities doing this. Buffalo is one example and I recently wrote (over here) about what happened to new developments once its minimums were eliminated. Among other things, it revealed where the previous parking requirements were overshooting what the market was actually demanding.

Urban parking is heavily dilutive to new developments. It drives up the cost of new housing. It is also hypocritical to claim that we want to encourage alternative forms of mobility while at the same time mandating that we build a certain amount of car parking. Do we want people to drive or do we want people to do other things? Which is it?

Some will bemoan this inevitable loss of parking (though it was already happening). But I think this is a great thing. It is Toronto growing up and continuing to realize that it's pretty damn hard to build a big and well-functioning global city if everyone is driving around everywhere. Maybe one day we'll even allow e-scooters.

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August 14, 2021

What happens when you eliminate parking minimums? Lessons from Buffalo.

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Back in 2017, the City of Buffalo introduced something known as the "Green Code." It was the first overhaul of its zoning code in over 60 years. I wrote about it here. One of most notable changes as part of the Green Code was the complete elimination of parking minimums. Which is another topic that has gotten a lot of air time on this blog.

Now that it has been a few years, Buffalo provides an interesting case study: What do developers do once you eliminate parking minimums in a mid-sized city? I mention mid-sized because I think the size of the city is relevant here. There is a common argument that you can't eliminate parking minimums unless you're in a big and transit-rich city. "This isn't [insert big city]. People drive here." I am sure that many of you have heard this before.

But is that really the case? Here is what Daniel Baldwin Hess & Jeffrey Rehler found when they studied the development response to removing parking minimums in Buffalo:

  • The study looked at 36 major developments in the first two years after parking minimums were eliminated

  • In aggregate, the 36 developments built 21% less parking spaces than what was previously mandated, likely demonstrating that the old zoning code was resulting in an excess supply of new parking

  • Mixed-used developments (of which there were 14, generally consisting of residential + retail) built 53% less parking than what was previously required

  • One exception to this trend is that single-use projects (both residential and commercial) built either the same or more parking (most of these projects were in the suburbs outside of the downtown core)

What this suggests to me is that the previous zoning code was maybe appropriate for what the market was demanding (for parking) in suburban locations. Maybe. But it was certainly overshooting what the market was and is willing to accept in more urban locations in Buffalo. Mixed-used (i.e. being able to support retail at grade) is likely a good measure of the project's urbanity.

Perhaps more importantly, I think this study shows that developers are incentivized to build what the market wants -- no more and no less. Building parking that nobody wants is bad business. As is building too little parking such that you can't rent or sell your space(s). A Goldilocks parking ratio is what you're after, but it is constantly changing and finding it can be a bit of an art. Eliminating parking minimums is a good way to let the market try and figure it out.

Photo by Seth Yeanoplos on Unsplash

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August 11, 2019

Thoughts on driving and parking

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Adrian Cook's recent blog post about parking got me thinking about a few driving-related issues. Adrian points out that most condo buildings only allow owners to rent out their parking spots to people who already live in the building. But oftentimes, that's not the customer. The people in the market for a downtown spot are the ones who commute into the city. And so what we are seeing in many downtowns is an oversupply of parking. Municipalities need to adjust their requirements.

What I have found is that most, but not all, cities are now fairly flexible when it comes to urban parking requirements. They recognize the hypocrisy in trying to encourage alternative forms of mobility while at the same time mandating a certain number of parking spots. And so the driver is more typically the market. Empty nesters and families who buy larger suites -- at least here in Toronto -- still almost always want parking. And it's a deal breaker for them. Sometimes they want 2 spots.

Of course, there are also many instances where the location and unit mix of a project can support building absolutely no parking. There are lots of examples of the market excepting this, and so my view on parking is that there needs to be flexibility. Parking is typically a loss leader. The incentives are in place to build a hell of a lot less of it. But developers build it because they have to.

Lastly, I find that discussions around car dependency tend to ignore that we have designed vast swaths of our cities to be positively inhospitable to people who aren't driving. Adrian is right in that if you look at the modal splits for people who live in downtown Vancouver and downtown Toronto, you will find a lot less drivers. And that's because the environment is much better suited to other forms of mobility. The solution starts with urban form.

Photo by Claudio Schwarz | @purzlbaum on Unsplash

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Brandon Donnelly

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Brandon Donnelly

Daily insights for city builders. Published since 2013 by Toronto-based real estate developer Brandon Donnelly.

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