Does a home need a car space? These Sydney suburbs are about to find out

The decades-old assumption that every new home must come with a car space is being challenged as a growing number of Sydney councils slash parking requirements in new developments in a bid to cut construction costs, ease traffic congestion, and force a shift toward public transport.

Developers building projects across large parts of the Inner West will be permitted to provide significantly fewer parking spaces, with some apartments allowed to have no parking at all, after Inner West Council voted to overhaul planning rules that have long treated car ownership as a necessity.

The move follows similar reforms by Woollahra, North Sydney, and the City of Sydney councils, which earlier cut parking rates for new apartments to as few as 0.1 spaces in some areas. The NSW government’s low- and mid-rise housing reforms have also introduced lower parking requirements, with some developments requiring as little as half a parking space per apartment.

A report by Inner West Council argued the changes were needed to address worsening traffic congestion, encourage greater use of public transport and improve housing affordability.

“Parking is expensive to build, and these costs are usually passed on to residents through higher rents or purchase prices,” the report stated.

The new rules divide the Inner West into three parking zones, with the most significant reductions applying around transport hubs including Ashfield, Marrickville and Dulwich Hill. In those areas, studio and one-bedroom apartments will be permitted to have no parking spaces, while two-bedroom apartments will be capped at 0.4 spaces.

A second zone covering Leichhardt, Rozelle, Petersham and Lewisham will allow a maximum of 0.3 spaces for one-bedroom apartments and 0.7 spaces for two-bedroom apartments. In parts of Annandale and Birchgrove, the maximum rises to 0.5 spaces for one-bedroom dwellings.

The changes replace planning controls that in some parts of the local government area required up to one parking space per apartment.

As part of the rules, residents of newly built apartment developments will also be barred from applying for parking permits, a measure designed to prevent parking demand spilling onto surrounding streets.

The reforms come as governments search for ways to lower housing construction costs. Modelling prepared for NSW Treasury found an underground car space in Sydney can add between $75,000 and $93,000 to the cost of building an apartment.

Community consultation showed the Inner West Council policy was supported by 45 per cent of residents and opposed by 41 per cent, exposing a divide between those embracing a car-free future and those who argue cars remain essential.

Margo Cashman, from Dulwich Hill resident group Save Dully, said the strategy overlooked the realities of daily life for many families and workers.

“If you’re a tradie that needs a car for work or a family that has more than one child, it’s not feasible to get around simply by bike or public transport,” she said.

Save Marrickville member Kelsie Dadd said the policy risked increasing competition for untimed street parking while ignoring Sydney’s geographic spread.

“Sydney has a huge urban sprawl and not everywhere has the same level of public transport connectivity and that means you still need to have a car to get around most parts of the city,” she said.

Urban Taskforce chief executive Tom Forrest argued the approach could also make new developments less attractive to families and workers who require cars and therefore be “forced to live further afield”.

Petersham resident and graduate engineer Ben Curtis, 23, said living without a car was both achievable and practical in the Inner West.

“I couldn’t possibly justify the cost of a car, and frankly, when I’ve had to drive around this part of the city, it’s a miserable experience,” he said.

The council vote comes after research by the Grattan Institute found more than 40 per cent of parking spaces in Sydney apartment buildings sit empty overnight. The think tank recommended “unbundling” parking from apartments.

Justin Simon, chair of Sydney YIMBY, said the Inner West was uniquely positioned to support lower car ownership due to major public transport investments, including the Sydney Metro and the GreenWay cycling corridor.

“No one’s saying you can’t have parking – some people will still want parking spots and they can still find plenty of apartments with parking and pay the extra $100,000 for the luxury,” he said.

UNSW Future Cities professor Chris Pettit said: “Sydney is becoming denser and more people are living around transport hubs. Part of that transition will mean fewer cars, but the important thing is that it’s supported by public transport infrastructure.”

The changes come despite census data showing car ownership remains widespread in the Inner West. While 14 per cent of households do not own a car, 45 per cent own one vehicle and 37 per cent own two or more.

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