North Carolina Eliminates Most Parking Minimums for Development

North Carolina enacted sweeping parking reform, eliminating most statewide off-street parking requirements for new residential and commercial developments. Governor Josh Stein signed the Parking Lot Reform and Modernization Act into law on Monday, with the changes taking effect January 1. This legislation bars local governments from mandating a minimum number of parking spaces for commercial or residential projects, a move intended to make new housing more affordable.

The bill passed with significant bipartisan support, backed by a coalition including environmental groups like the Sierra Club and conservative organizations such as Americans for Prosperity. This broad backing is seen by some as a model for future coalition building on policy issues. The reform builds upon similar measures already adopted by several North Carolina cities. Coastal counties are exempt from the new rules, a provision added to address concerns regarding parking for vacation rentals.

State Representative Donnie Loftis, a key sponsor of the bill, stated during a floor speech on June 30 that the reform is a significant economic driver and will reduce the cost of parking spaces. He estimated that surface parking spaces average between $5,000 and $10,000, while parking deck spaces can range from $25,000 to $65,000. The law also allows local governments to offer incentives, such as tax breaks, to developers who incorporate stormwater control measures.

This parking reform was part of a larger legislative effort, with House Bill 162 evolving from a previous version, House Bill 369, which passed the House unanimously in June 2025 but stalled in the Senate. The inclusion of the coastal exemption was crucial for securing wider support in the Senate. The passage of this bill occurred alongside the state legislature approving a full budget for the first time in over 1,000 days.