Housing vs. Parking: Banff Defends Elimination of Parking as Housing Pipeline Surges

Banff’s effort to address its housing shortage has taken a decisive turn away from mandatory parking requirements and toward what Mayor Corrie DiManno describes as a “car-free and car-light future.” The strategy has already produced a surge in housing applications and is tied directly to millions of dollars in federal funding.

At the centre of the shift is a 2024 bylaw eliminating minimum residential parking requirements for new developments. The change was embedded in Banff’s Housing Action Plan and later formalized under its agreement with the federal Housing Accelerator Fund, which awarded the town $4.66 million in exchange for “bold action,” including the removal of parking minimums.

Town officials say the policy responds to both physical constraints and financial realities in a national park community where outward expansion is not permitted.

A Town That Cannot Grow Outward

Banff is effectively built out. Town planning materials indicate that nearly all residential land within the fixed park boundary has already been developed. New housing must be integrated within existing neighbourhoods.

Historically, parking requirements limited that flexibility. Underground parkades require costly down ramps and significant space, while surface parking consumes land that could otherwise support additional homes.

During the Feb. 24 council meeting, Banff resident Jeffrey Carpenter cited research from the Victoria Transport Policy Institute estimating that requiring one parking space per unit increases housing costs by 12.5%.

Carpenter also noted that a single underground parking stall can add between $65,000 and more than $100,000 to the cost of a home.

“For the Wolf Street project, the old parking rules would have meant 70 more parking stalls and 20 to 30 fewer homes,” Carpenter said.

“By removing parking minimums, council made a choice to prioritize people,” Carpenter added.

Housing Applications Climb

The impact has been immediate.

More than 600 housing units are now in the development pipeline. That figure exceeds the total number of homes created in the entire previous decade.

Banff’s agreement with the Canada Mortgage and Housing Corporation (CMHC) requires the town to meet building permit targets to unlock its full funding allocation. Alison Gerrits, Banff’s Director of Community Services, clarified that building permits, not development permits, are the metric CMHC uses to determine whether obligations have been met.

When council asked whether CMHC had set a specific parking benchmark, Gerrits explained that the original housing action plan categorized the change under parking reduction. The strategy ultimately pursued was decoupling parking requirements from housing rather than setting a fixed stall target.

In practice, developers have continued to build parking, though at lower levels. Current applications average roughly 0.6 parking stalls per unit, below traditional one-to-one standards but not zero.

Transit and Active Transportation

Council has framed the removal of parking minimums as part of a broader transportation strategy rather than a standalone housing decision.

Free local transit was introduced in 2022 and is funded entirely through Visitor Paid Parking revenues. Since then, resident ridership has increased significantly. Municipal data presented to council estimates that the local transit network removes the equivalent of roughly 3,000 vehicles per day from Banff roads during peak summer months.

Numbers cited during the meeting from Statistics Canada indicated that 54% of the Banff workforce uses sustainable modes of transportation, 46% walk or bike to work, and 13% of residents do not own a vehicle.

Transit service is also expanding. Council recently approved a new winter bus route linking the Fenlands Banff Recreation Centre, the Banff Centre and the train station. Council also extended Route 1’s summer-level service through Thanksgiving in October and approved $160,000 for bus stop upgrades, including new benches, concrete pads and lighting. Ridership between October and April has increased 163% over the past decade.

The town’s e-bike rebate program is another pillar of the strategy. Residents are eligible for a rebate equal to 50% of the purchase price, up to $500. The program is fully funded through Visitor Paid Parking revenues and has supported 820 e-bike purchases since its launch.

Banff council has also approved a three-year car-sharing pilot program set to launch in spring 2026. The program will begin with at least five vehicles at a minimum of two locations and is budgeted at $230,000 through 2028. According to a report to council, an online survey received 506 responses, with 77% expressing interest in a car-sharing service.

DiManno said the program could help address affordability pressures by allowing residents to access a vehicle when needed without bearing the full cost of ownership.

Together, these programs form the transportation framework council argues makes reduced parking requirements feasible in a fully built-out mountain town.

Community Concerns

The shift has not been without opposition.

Residents who spoke to council expressed concerns about street congestion, neighbourhood crowding and emergency evacuation access if new housing proceeds without on-site parking.

Some councillors questioned whether the town should revisit its approach.

Councillor Standish introduced a motion directing administration to return with options to reinstate parking requirements in the land use bylaw. He argued the issue warranted further discussion given the level of public concern.

But several members of council expressed worry that even asking staff to explore reinstating minimums could be interpreted as backtracking on commitments made under the Housing Accelerator Fund agreement.

Federal Funding at Stake

The Housing Accelerator Fund agreement awarded Banff $4.66 million specifically because it committed to eliminating parking minimums.

Administration cautioned that directing staff to prepare options could create process conflicts with earlier motions and potentially raise concerns with federal officials. During the meeting, examples from other municipalities were cited, including Red Deer, where a $12 million agreement was canceled after policy reversals.

After discussion, Standish withdrew the motion.

In the end, council maintained its current direction: no reinstatement of mandatory parking requirements, continued monitoring of housing outcomes and further work on voluntary or incentive-based approaches if needed.

“We’re trying,” DiManno said near the close of debate. “Let’s see where we land in terms of how much housing gets built, where parking pressures may or may not exist, and then we can adapt from there if we need to.”

Council adjourned without altering its parking policy.