Cape Town parking rules blamed for driving up city centre housing costs

A growing urban planning debate suggests that parking requirements, not just land shortages or bureaucracy, may be quietly worsening Cape Town’s housing affordability crisis.

Urbanists argue that mandatory parking bays in residential developments are pushing up construction costs, reducing density and limiting how many homes can be built in the inner city.

The issue was highlighted in a recent opinion piece by Young Urbanist Group member Marko Kiessling, sparking discussion about whether cities are prioritising vehicles over residents.

Mandatory parking adds hundreds of thousands to housing costs

Young Urbanists managing director Roland Postma said minimum parking rules embedded in municipal planning systems can significantly inflate the cost of new apartments.

He explained that parking space requirements can add up to roughly R150,000 in construction costs per unit, alongside substantial land costs.

Postma said this can dramatically change the economics of development.

“If you take a small apartment without parking, it may cost just under R500,000 to build. Add parking, and that figure can climb close to R1 million,” he said.

He argued that across large developments, these requirements can reduce the number of units built and push purchase prices higher, particularly in areas where housing demand is strongest.

Large portions of new buildings are used for parking

Urban planners say the design of many new CBD buildings reflects this imbalance.

In some developments, up to a third of total floor space is allocated to parking instead of housing or commercial activity.

Postma said this represents a major opportunity cost for cities trying to expand housing supply.

“There’s a huge amount of space that could be used for homes, businesses or creative industries instead of storing cars,” he said.

Calls to rethink city transport priorities

Postma said addressing housing shortages will require South Africans to reconsider the amount of space devoted to cars.

He pointed to existing public transport improvements, including MyCiTi services and ongoing rail recovery efforts, as reasons cities could reduce parking dependence.

He added that reducing on-street parking and charging more for it could also help shift commuters toward public transport while freeing space for other uses.

Shift already starting, but not consistent

While some newer developments in Cape Town are being approved with limited or no parking, Postma said the approach is not yet widespread.

He believes municipalities should move faster, both by tightening requirements for new buildings and incentivising the conversion of underused parking structures into other uses.

“There’s a lot of unused parking space in the CBD,” he said. “We need policies that help repurpose that space and encourage developments that focus on people rather than vehicles.”

The debate comes as Cape Town and other major metros continue searching for solutions to rising housing demand and urban densification pressures.

For more detailed information, listen to Postma using the audio player below: