New Zealand's government is considering reinstating mandatory minimum car parking requirements for new developments, reversing recent reforms aimed at increasing housing density and reducing car dependency.
The policy shift, reported by The Post, would require developers to include a set number of parking spaces per dwelling—a requirement that many councils removed in 2020 to encourage compact, transit-oriented housing.
Urban planners have warned the move would increase housing costs, reduce density, and undermine climate goals—all while New Zealand faces a severe housing crisis with median prices still near record highs.
Parking mandates typically require one to two spaces per apartment, adding $50,000 to $100,000 to construction costs in major cities where underground parking is necessary. That cost gets passed directly to buyers or renters, making housing less affordable precisely when Auckland and Wellington need more supply.
The requirements also reduce the number of homes that can fit on a given piece of land, since parking takes up space that could otherwise be used for additional units. In dense urban areas, parking can consume more square meterage than the apartments themselves.
Mate, we've got a housing crisis and a climate crisis, and the government's solution is to mandate more concrete for cars. Brilliant.
The government argues that removing parking minimums has led to congestion and parking shortages in some neighborhoods, with residents unable to find street parking near new developments. Transport Minister Simeon Brown has suggested that "market-led development" needs guardrails to protect existing residents.
But urban planning experts note that Auckland and Wellington removed parking minimums specifically to encourage development near public transit, where residents are less likely to own cars. Data from Auckland Council shows that apartments near train stations have car ownership rates 40% lower than suburban homes.
Environmental groups have condemned the proposal as inconsistent with New Zealand's climate commitments. The country aims to reduce transport emissions—currently 47% of total emissions—but mandatory parking actively encourages car ownership and use.
The policy also puts New Zealand out of step with international trends. Cities from Paris to Tokyo to Minneapolis have abolished parking minimums, finding that developers build parking when there's genuine demand without needing government mandates.
Community reactions on social media have been mixed, with suburban residents generally supportive and urban residents skeptical. One Wellington commenter noted: "I live in a new building with optional parking. Half the units didn't buy a space. Turns out people who choose to live near the train station don't all want to pay $80k for parking."
The government is expected to release detailed proposals in the coming months, potentially allowing councils to opt in to reinstating parking minimums rather than making them nationally mandatory.
