The Illinois General Assembly just eliminated parking minimums for developments near transit hubs. That flexibility should boost housing.
Illinois state lawmakers just removed minimum parking space requirements for developments near transit hubs, a major win for housing affordability and production statewide.
Senate Bill 2111 includes the People Over Parking Act, originally introduced by state Rep. Kam Buckner, D-Chicago, as House Bill 3256 earlier this year. It states “a unit of local government may not impose or enforce any minimum automobile parking requirements on a development project if the project is located within one-half mile of a public transportation hub or one-eighth mile of a public transportation corridor.”
The act excludes hotels, motels, bed-and-breakfasts and other transient lodging where people are likely to be traveling and have cars with them. It takes effect June 1, 2026.
A public transportation corridor is “a street on which one or more bus routes have a combined frequency of bus service interval of 15 minutes or less during the morning and afternoon peak commute periods.” A public transportation hub is a rail station, a boat or ferry terminal with a bus stop or rail station, or the intersection of two or more bus routes “with a combined frequency of bus service interval of 15 minutes or less during the morning and afternoon peak commute periods.”
Municipalities may still establish maximum parking allowances and minimum parking for bicycles, and the act doesn’t apply to previously approved planned developments. But new projects within those transit zones can no longer be forced to include minimum parking requirements.
That change matters because parking mandates make housing more expensive. Researchers estimate the cost of parking raises rents by about 17%. When municipalities require parking minimums, all residents within the housing development bear that cost – even those who don’t have cars to park.
Parking mandates also drive up construction costs, making it harder for projects to be worth the investment. With Illinois facing a housing shortage of about 142,000 homes, lawmakers must make building easier and more affordable.
The reform benefits local governments as well. New development grows the population and tax base, providing more resources to support the community. Outside of Chicago, this will particularly serve metropolitan areas such as Champaign-Urbana, Bloomington, and East St. Louis, which have significant areas affected by the change.
Importantly, this legislation doesn’t mean developers will stop building parking. The People Over Parking Act simply gives them flexibility to provide only what’s needed. It allows housing to be built where residents may not need or want parking, keeping prices lower and production more feasible.
Buckner summarized it on X: the act “cuts the red tape that forces developers to build parking even when people don’t need it; freeing up space, speed, & savings.”
