In the case of an office or retail building, the ideal parking ratio is likely defined as the optimal number of spaces per 1,000 square feet. However, in the context of a multifamily commercial property, a parking ratio may stipulate the ideal (or mandatory) number of parking spaces per unit, per bedroom, OR per 1,000 square feet.
In cities where car ownership is commonplace (and public transportation is abysmal), tenants will deeply value those properties that offer tenants on-site parking. On-site parking facilities can even be a tie-breaker for prospective tenants deciding between one multifamily building and another down the street.
Generally speaking, parking ratios that align with the average # of vehicles per household in a given city will increase tenant satisfaction, improve property value, and ensure compliance with city regulations.
While there may be no universally accepted ideal multifamily parking ratio, I’ll provide you with some general recommendations that can help you determine just how much parking your multifamily property should have.
Understanding the Basics of Parking Ratios
As I mentioned, the parking ratio can be calculated in one of three ways. It is either calculated per unit or per 1,000 square feet. Some may even consider the total number of parking spaces per bedroom.
Municipalities and lenders often define parking ratios in their own way. so it’s important to understand that parking ratio calculations may vary depending on the property type and who is measuring it.
How to Calculate Your Current Multifamily Parking Ratio
The calculation for your current parking ratio is simple:
- Count total parking spots
- Count total units (or total bedrooms, total square feet, etc.)
- Divide the number of spots by the number of units (verify with your municipality to confirm what formula they use).
What’s Considered a “Good” Parking Ratio for Multifamily?
Now that you have a number calculated, it’s time to investigate what is considered a “good” parking ratio for multifamily properties. To do this correctly, we must first examine the differences between urban and suburban multifamily properties and Class A and Class B/C properties.
Urban vs. Suburban Differences
For urban multifamily properties, the parking ratio can be as low as .7-1 parking spaces per unit. The tenants typically have access to public transit, and the walkability score for the area is generally higher. Therefore, fewer parking spaces are needed for an urban multifamily property.
Suburban multifamily properties, however, have parking ratios in the range of 1.5-2 parking spaces per unit. This higher parking ratio is intended to serve those suburban residents who are more likely to own a car.
Many ordinances or city codes set minimum parking ratios at one parking space per bedroom.
Class A vs. Class B/C Properties
Class A multifamily properties are typically higher-end and have more amenities. Generally speaking, many of the families living in these properties are dual-car families, so we see higher parking ratios in the 1.5 to 2 spaces per unit range.
For Class B/C properties, although parking rates can be similar, we typically see lower parking ratios in the 1-1.25 spaces per unit range. The tenant base may be more transit-dependent, and in that case, it will be on the lower end, with about one space per unit.
Local Ordinances
Local ordinances will need to be considered whenever you are dealing with commercial real estate or multifamily properties. Some municipalities enforce minimum parking requirements that force you to follow a specific parking ratio.
In recent years, there has been a shift towards reducing or eliminating minimum parking requirements. The goal is to combat traffic congestion and provide alternative transportation methods.
San Francisco removed minimum parking requirements citywide in 2018, allowing developers to determine parking needs based on market demand. Minneapolis eliminated parking minimums in 2021. Because of these changes to parking regulations and, by extension, the required number of parking spaces, multifamily investors can save thousands of dollars in development and planning costs.
Recommended Multifamily Parking Ratios by Location Type
This table gives a basic overview of the recommended multifamily parking ratios by location type. You’ll notice that the further you get from an urban center, the higher the recommended ratio is.
| Location Type | Recommended Ratio (Spaces/Unit) | Notes |
| Urban Core | 0.7–1.0 | Near public transit, walkable amenities |
| Transitional/City | 1.0–1.5 | Moderate car ownership |
| Suburban | 1.5–2.0 | More likely, multi-car households |
| Rural | 2.0+ | Limited public transit options |
Tips for Navigating Parking Challenges
If you notice your building’s parking ratio is not within range of your local ordinances or your tenants are complaining about parking-related issues, there are steps you can take to help.
Here’s what to do if you suspect your parking ratio is too low or too high.
If Your Parking Ratio Is Too Low
If your parking ratio is too low and you don’t have enough available parking spaces, the first thing to do is look at an alternative parking lot layout. Is there the possibility of re-striping the parking stalls for more efficient use of space? Depending on the lot, an angled setup can create more accessible parking stalls.
If square footage is limited and alternate layouts are not possible, consider adding bike racks, creating shared car programs, or offering discounted transit passes for tenants.
If Your Parking Ratio Is Too High
When your parking ratio gets too high, you can increase your revenue by renting out vacant spaces. Using Neighbor, you can list your extra parking spaces to non-residents (i.e., employees at local office buildings or tenants of neighboring properties who may have extra vehicles that they can’t store at their current place of residence). Did you know that 40% of the largest multifamily REITs rent vacant parking spaces to non-residents to maximize parking revenue?
Another way to fill vacant parking spaces is to offer discounted rates to tenants if they sign a long-term contract. Long-term occupancy rates should be lower than month-to-month rates, given the inflexibility.
If you want to boost the ancillary revenue your multifamily property generates, you can add EV charging stations, repurpose the empty parking spaces into a green area, install a playground or sports area, or build out rentable storage lockers/units.
Parking Layout Best Practices
As a new multifamily property, you’re trying your best to balance parking ratio requirements with the amount of workable square footage you have on-site.
Here are a few best practices and helpful tips to keep in mind when optimizing the layout of your parking lot.
- A general rule of thumb is that a 1-acre paved lot can hold 100-150 standard parking spaces, depending on the layout.
- A typical parking stall is 9 x 18 feet.
- Angled parking leaves more room for spaces and can be easier for tenants to maneuver.
- Remember that clear signage, lane markings, adequate lighting, pedestrian walkways, and fire lane requirements are also going to need to be part of your multifamily parking plan.
Final Thoughts
Finding the right parking ratio will help you attract potential tenants and keep your current tenants happy while also ensuring your property complies with local regulations.
Consider using Neighbor to list unused spaces if you have more parking spots than tenants.
For other parking optimization strategies, download Neighbor’s (free) 2025 Multifamily Parking Intelligence Report here.
