In California law, there has long been a statute that mandates a certain number of parking spaces per housing unit. While these spaces were clearly useful for residents, it also made development, and therefore rents, way more expensive. In the midst of an affordable housing crisis, the Golden State is now trying something new. Governor Newsom signed a law that will abolish parking minimums near transit stops.

California lawmakers led by Glendale Asm. Laura Friedman first proposed the law last year. The new legislation repeals the parking mandate for any new development within half a mile of a public transit stop. This includes any bus stop in the state, meaning that most major cities will have ample space to build these developments without parking. Officials hope this new law will discourage driving and encourage transit use, as well as create more affordable housing.

Parking Minimums Drive Up the Price of Housing

The estimates on how much parking spaces cost to build vary, but there’s one major constant: they are expensive. One study found that a parking space can add $1,700 to a person’s annual rent. This happens because developers need to build the parking in the first place, which can cost tens of thousands per space or more. Those costs get passed on to renters in the form of higher rent.

It’s no secret that California is in an affordable housing crisis. The cost of housing all across the state has soared in recent years, with rents in many California cities soaring to unforeseeable highs. Groups like California YIMBY (short for “Yes in my backyard”) have long been pushing the state to address the crisis. This law is a big step towards bringing more housing to the Golden State.

The law should also have major benefits for climate change purposes. Parking minimums tend to encourage driving in places where people could use transit instead. This new law will make driving less convenient for people, thereby giving them an incentive to take the bus or train.

Of course, some places will still need parking spaces. Shopping centers, airports, offices, and other places where many people congregate will still need significant parking. Cars aren’t going anywhere, but they might get a bit less dominant in California’s culture.