A Grattan Institute report says mandatory parking in new apartment blocks adds tens of thousands of dollars to each home, while many spaces sit empty overnight.
A new Grattan Institute report has called on governments across Australia to scrap parking minimums, the planning rules that require developers to build a set number of car spaces with new apartments.
According to the report, as covered by ABC News, up to 40 per cent of car spaces in capital city apartment buildings are empty each night, and Sydney and Melbourne apartments already contain more car spaces than cars. The think tank estimates that building parking adds about $70,000 to the cost of a two-bedroom apartment in Sydney, $62,000 in Melbourne, $95,000 in Adelaide, $113,000 in Brisbane and $137,000 in Perth.
The report found 19 per cent of two-bedroom households in the capitals do not own a car, rising to 40 per cent for one-bedroom and studio households. It estimates that more than $1 billion a year goes on off-street parking that is never used.
Among its recommendations are abolishing minimums, relying on residential permit schemes, and "unbundling" car spaces so they can be bought or rented separately from the apartment. Grattan estimates the changes could mean 86,000 fewer spaces built over five years, saving $5.2 billion.
If unbundling takes hold, more apartment car spaces could be bought, sold and leased on their own, giving residents without a car a way to earn from an idle bay and giving drivers more options to rent one nearby.
Photo: Miles Millhouse / Wikimedia Commons, Public domain. Boom gate at the entrance to an underground car park.