By Colorado state law, Denver had to remove parking requirements for specific residential developments.

The city council this past week decided to up the ante and remove parking minimums altogether throughout the city.

While the decision affects all types of new development, the quest to make housing easier and more affordable to build became a galvanizing factor in support of the change.

We have a housing crisis, not a parking crisis,” Council Member Chris Hinds, who was among the ordinance sponsors, said during the meeting.   

The decision, effective August 11, marks Denver's move to lock arms with other major American cities and states whose legislators have reformed parking requirements, with the hope of lowering development costs for new housing. In June, for example, Chicago eliminated parking mandates for new developments along transit corridors.

As the new policy takes effect in Denver, the city joins neighboring Boulder and Longmont in parking reform. Boulder took the step in July, after Longmont became the first city to abolish parking minimums entirely in May.

Addressing a Shortage

Although Denver’s housing construction has been booming, the Common Sense Institute estimates that the metropolitan area faces a deficit of 64,000 to more than 135,000, with new home permits lagging behind the pace needed to eliminate the shortfall by 2028.

Denver city officials and advocates say the reform will reduce construction costs, cut regulatory red tape, and spur new housing development, including more affordable options.

The city’s planning staff estimates that cutting these requirements may shave hundreds of hours off project review processes annually, speeding up new construction. Time is money.

Before approving the reform, Hinds echoed public comments that mandated parking has long inflated housing costs and stymied projects.

Current mandates outlawed essentially the traditional central street neighborhoods where homes, shops, and parks coexist within an easy walking distance," Hinds said.

Over the past several months, proponents cited studies showing that removing parking minimums could yield hundreds of additional homes each year. A University of Denver analysis, for example, put the number at about 450 homes in favorable economic conditions.

Under the previous rules, most new residential and commercial developments in Denver were required to include a set number of parking spaces per unit or per square foot—a system housing advocates, planners, and nonprofit developers criticized as outdated.

Critics of the old rules cited data showing that up to 50% of mandated parking spots at affordable housing near transit go unused, while structured parking spaces can add as much as $50,000 to the cost of a new unit.

While the changes mean developers are no longer obliged to provide a minimum number of parking spaces, city planners expect that many will still include parking according to market demand. Evidence from projects exempt from previous mandates—such as office buildings and downtown apartment developments—shows that parking often exceeds what zoning laws once required.

Reform proponents say removing the mandates gives developers flexibility without contributing to empty pavement and will enable denser, more walkable neighborhoods.

The change was partly prompted by a 2024 state law that bans minimum parking requirements for new multifamily housing near transit routes and adaptive reuse when 50% or more of the building is residential. It went into effect on June 30.

Not everyone is Convinced

Critics during the meeting, which included some business groups and neighborhood residents, worry that the transition could worsen parking shortages— particularly for those who rely on cars for work. They also argue that Denver’s transit infrastructure may not yet be ready to absorb the shift from car-centric development.

Their comments reflected familiar concerns in other large cities pursuing similar reforms.

Denver’s move follows trends seen in other cities such as Austin, Minneapolis, and San Francisco, where removal of parking minimums has been credited with fostering housing growth and increased walkability.

Whether Denver's reform will deliver on its pledges—more homes, lower costs, and a more livable city— remains to be seen as developers and residents adjust to a landscape less governed by parking mandates.