San Jose is largest U.S. city to abolish minimum parking for new housing

San Jose, Calif., recently became the largest U.S. city to strike down minimum parking requirements for new housing development.

The city reversed zoning devised in the 1950s that reputedly gave it the worst sprawl of parking space in northern California. The council abolished standards that required new single-family homes to have two covered parking spots. The old standard also mandated restaurants provide one spot for every 40 sf or 2.5 dining room seats, whichever were greater.

In its first significant shift in parking rules since 1965, the council also aims to promote other modes of transportation with new bicycle parking mandates, including requiring one bike for every two lanes at bowling alleys and at least one bicycle spot for every 800 sf at restaurants.

The new rules do not prevent developers from building parking lots in the city, but allows them to “rightsize” parking for new developments as they deem appropriate. The action does not remove any current parking.

Across the country, multifamily rents have skyrocketed. Year-over-year rents are up by double digits in nine of the top 30 markets, while national YoY rent growth is up 6.3%. Emerging from the pandemic, a perfect storm of migration, enhanced government stimulus and a hot housing market, among other factors, has enabled this extremely strong growth.