North Carolina Ends Mandatory Parking Minimums for New Developments 

North Carolina faces a shortage of housing in many parts of the state, but new legislation enacted this summer will help address that challenge. On July 7^th, Governor Josh Stein signed HB 162 into law, which would ban local governments from instituting mandatory minimum parking space requirements for new housing developments. North Carolina joins six other states in passing this kind of comprehensive reform to minimum parking lot regulations. 

This law made it through with bipartisan support. In a press release, Governor Stein stated that HB 162 would give “…North Carolina another tool in the toolbox to build more homes and make housing more affordable.” Republican State Senator Donnie Loftis, the primary sponsor of the bill, echoed how these parking lot minimums make development more unaffordable in the state, saying “A surface parking spot can cost you five to 10 thousand dollars per spot, well the developer is not going to eat that, they are gonna pass that along to the cost of the house.” It is good to see members of both parties recognize bad policy when they see it, and do something about it.  

This example of YIMBYism (Yes in My Backyard) is legislation that will only encourage the development of new housing in the state, making North Carolina a more affordable state.  

Parking minimums drive up the cost of housing. Building out parking lots can cost anywhere from $5,000 to $10,000. This cost skyrockets when it comes to apartments because they have more units and thus need more parking, likely a parking garage, which costs anywhere between $25,000 to $50,000 per space. These costs add up and are eventually passed on to the consumer. According to the University of California, Los Angeles’s Center for Parking Policy, minimum parking requirements increased rents by $200 to $300 per month and condominium prices by $60,000 to $100,000.  

The parking minimums soon add up and eat into possible land use. For example, 31% of Greensboro, North Carolina consists of off-street parking. This phenomenon is present across North Carolina, with 28% of Raleigh and 26% of Charlotte consisting of off-street parking.  Since this land must be used for parking to meet the mandate, less land is available to build dense housing. This further drives up housing costs, putting it out of reach.  

Since more land must be used to meet this mandate, consumers and businesses incur high indirect costs. For example, these parking requirements push housing farther out, effectively having builders subsidize suburban sprawl and low-density housing. This pushes municipalities to be more car-centric, leading to longer roads, extended utility lines, and more dispersed services, thereby creating new expenses for households and businesses. Furthermore, because the asphalt used for these parking minimums is low-porous, it increases the risk of flooding and urban heat island effects, leading to weather patterns that drive up the damages residents and businesses face.  

Ending some of these outdated parking mandates has already proven effective at the local level. For example, in 2022, Raleigh ended parking minimums in the city. The impact has been a rise in the creation of more housing, particularly a proliferation of duplexes, townhomes, and accessory dwelling units. Having these smaller homes built more easily has increased supply, making Raleigh one of the most affordable metros in the United States and the number one destination for new college graduates. Similar curtailing of parking minimums has seen great success in Charlotte, North Carolina, in their South End neighborhood.  

By ending the parking minimums, North Carolina empowers developers and the free market. Rather than abiding by an arbitrary regulation, builders can determine which parking options they will offer. Some may opt not to include any parking, while others may be able to afford it and build out the parking. The result is a more efficient use of land, more housing, and a healthier community. There are a lot of reasons people are coming to North Carolina and affordability is one of them. By passing this legislation, North Carolina is affirming its commitment to creating an affordable state where people can thrive and grow.