Scrapping 86,000 new car parking spaces could save $5.2bn and drive down rents, Grattan report finds
Summary
A report from the Grattan Institute finds that Australia is set to build 86,000 extra car parking spaces in the next five years that many people do not need. These parking requirements add significant costs to new apartments and raise rents, so the report suggests removing rules that force developers to include a minimum number of parking spaces.Key Facts
- Building 86,000 new car parking spaces could cost Australia $5.2 billion over the next five years.
- Many parking spaces in apartments remain unused, with about 40% empty at night.
- Current rules mandate a minimum number of parking spaces per bedroom, e.g., 0.6 spaces per one-bedroom apartment in Sydney.
- Parking requirements add tens of thousands of dollars to the cost of building new apartments (e.g., $70,000 in Sydney).
- Higher building costs limit new housing supply and increase rents, especially hurting low-income renters.
- Some local councils have reduced parking minimums near good public transport, but the report recommends removing these rules nationwide.
- The report advises governments to manage street parking with permits, time limits, and fees to avoid over-parking.
- It also suggests that state governments take control away from local councils to stop them enforcing parking minimums, like New Zealand did in 2020.
Read the Full Article
This is a fact-based summary from The Actual News. Click below to read the complete story directly from the original source.