Is the parking spot dead in Toronto?

Buildings in Toronto are including fewer and fewer parking spaces, with some not featuring any spots for residents — a trend experts expect to continue.

Richard Lyall, president of the Residential Construction Council of Ontario (RESCON), told Real Estate Magazine it can cost a developer up to $120,000 to build a single parking space, a cost often passed on to consumers and one that affects affordability.

Lyall believes the amount of parking included in new developments should be left to the market rather than enforced through city bylaws. Toronto removed zoning rules requiring parking minimums in 2022 and is now considering doing the same for visitor parking. Lyall said developers will pay the price if they choose not to include parking in areas where it is in demand and then struggle to sell units.

Letting the market decide

Lyall argues parking is less necessary in transit-rich areas. In neighbourhoods where cars are needed, he said above-ground parking is a better option because it costs less to build. It also leaves open the possibility of converting parking areas to other uses later, such as retail or residential space.

“If someone wants parking, they can find a building that offers it and potentially pay more for their unit,” he said.

Real estate platform Wahi found in May that a parking space can add up to $200,000 to the price of a one-bedroom condo.

“These parking spots are really expensive, and you don’t need them all,” Lyall said. “Leave it to the market.”

Rising costs below ground

Jennifer Keesmaat, president and CEO of development company Collecdev Markee, told REM the rising cost of parking is largely due to a city policy introduced in 2022.

That year, Toronto required new developments not to discharge foundation drainage and groundwater into the city’s sewer system to avoid overwhelming it. Often, the only way to comply is by “bathtubbing” below-grade parking — sealing lower levels so water cannot enter.

Keesmaat said the policy is aggressive and significantly increases construction costs.

“It overbuilds infrastructure because if you don’t need it — if it’s a bone-dry site — you don’t need to be pouring that much concrete,” she said. “It adds enormous costs.”

Density without cars

Keesmaat said Toronto has reached a point where there is little room for more cars. While the city does not explicitly discourage parking, she said projects with fewer spaces often have a better chance of approval.

Removing parking minimums has effectively left the decision to the market, she said, and many developers are opting to include less parking because of the cost.

Her projects include buildings with and without parking. She said it is unrealistic to exclude parking entirely in areas not well served by transit, such as parts of North York.

“There, a developer would be committing suicide,” she said. “The units just wouldn’t sell.”

Keesmaat said parking affects the real estate market when projects stall because parking costs are too high. She added that buildings without parking can make higher density more acceptable to nearby residents because it does not mean more cars on the road.

“Most people who oppose density, they actually don’t want more cars in their neighbourhood,” she said. “It’s not that they don’t want more people.”

Concerns about visitor parking

As the city reviews whether to remove visitor parking minimums, Toronto Councillor. Lily Cheng is speaking out against the trend toward fewer parking spaces.

Cheng says she is concerned many buildings now include too few visitor parking spaces — something buyers may overlook when purchasing a unit. She said the lack of visitor parking can have negative mental health effects on residents.

Many proposals in the development pipeline still include little or no visitor parking, Cheng said, and because they have not yet been built, the long-term impacts remain unclear.

Cheng plans to launch a survey to gather more data, but noted the province has designated Major Transit Station Areas in Toronto, limiting the city’s ability to require visitor parking minimums near transit hubs. As a result, the city’s review of its visitor parking bylaw is on hold until next year.

“You can choose as a resident whether you’re going to drive or not, but you might not be able to choose whether your mom can take transit to visit you,” Cheng said. “If there’s no visitor parking, it will present a significant challenge for people.”