Illinois moves to boost housing by curbing parking mandates

"The People Over Parking Act positions Illinois to become the fourth state to enact such a reform, following in the footsteps of states like California and Colorado. The reform was a key element of a larger bill that has a $1.5 billion funding package for public transportation. It created the Northern Illinois Transit Authority to streamline planning and establish a new funding stream to avert a looming fiscal crisis for the region's transit agencies."

"The state-level action builds on momentum from Chicago, which in July 2025 became one of the largest U.S. cities to scrap parking mandates for new projects in transit-rich areas. Chicago eliminated parking minimums for most new developments located near its extensive network of Chicago Transit Authority and Metra stations and high-frequency bus routes, a change that officially took effect in September. That ordinance allows builders to forgo expensive off-street parking, a significant barrier to creating more affordable, walkable communities."

Illinois is set to eliminate parking minimums for new or renovated developments within a half-mile of rail stations or one-eighth mile of high-frequency bus routes statewide, effective June 1, 2026. The People Over Parking Act would make Illinois the fourth state to enact such reform, pair the policy change with a $1.5 billion public-transportation funding package, and create the Northern Illinois Transit Authority to streamline planning and fund transit agencies. The state action builds on Chicago’s July 2025 elimination of parking minimums for most transit-rich developments. The change aims to lower construction costs and enable more affordable, walkable, transit-friendly housing.

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