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Whether apartment parking should be required in new development has been dominating commercial real estate headlines recently. In the discussions around this topic, we need to consider not just the immediate impact of any requirements, but also what is going to keep Portland the livable, healthy urban environment we’d like it to be, which ultimately means increased density.

Portland’s reputation worldwide is as a well-planned, green, highly livable and bike-friendly city with an effective public transit system. Part of the reason we’ve achieved this reputation is because the city implemented density overlays in the late 1980s, with the goal of supporting mass transit, commercial enterprise and safe, accessible housing. And in the early 2000s, Portland City Council voted to stop requiring developers to include parking in order to encourage development and increased density.

This policy was essentially a non-issue until the most recent recession, when the planets aligned for the for-rent market. Even before the recession hit in 2008, apartment construction was slow, essentially petering out to nearly nothing as the economy worsened.

The market was starved for new construction, but demand for apartments continued to increase as the population grew, and the single-family housing market going bust meant many former and prospective homeowners searched for rentals instead. The highly popular eastside was particularly stretched for apartments, because relatively little construction had occurred since the 1970s.

With land values dropping, developers bought dozens of infill parcels in close-in areas and planned new projects. Through 2014, we will continue to see apartment construction and deliveries on an unprecedented scale, with roughly 7,000 total urban units expected to come online in this building cycle. The development of nearly a dozen buildings with no parking within blocks of each other on Southeast Division Street really brought the parking issue to a head.

As a result, Portland City Council in early April voted to require parking for buildings of 30 units and above, on a tiered system with buildings with more units requiring a higher ratio. While these limits are fairly reasonable, they may well put a damper on proposed projects, or force developers to reduce the size of certain projects.

Parking can be prohibitively expensive for developers to build – particularly for small, infill projects. There are solutions, like the stacking parking systems used in a number of buildings in the area; however, they can be very expensive.

And just because developers build parking doesn’t mean residents will use it. Many residents, given the option of parking on the street versus paying for a designated space, will opt for the street. Developers also are putting in lots of amenities for car-free residents: Bike parking is now standard for all new buildings, as well as spots for car-sharing programs like Zipcar.

A potential solution that has only been implemented in one area of the city is zoned street parking, managed by the city and neighborhoods. The Northwest area is one of the most desirable places to live, work and shop in Portland; also, housing there is very dense. Parking there is tight, but that doesn’t deter residents and visitors, and the area garners some of the highest retail and residential rents in the city.

Portland needs to continue to increase density as it grows. When density increases, so does transit use – as do system improvements and the viability of car shares like Zipcar and car2go. Commercial enterprise also flourishes, contributing to the redevelopment of old significant buildings. One of the greatest attributes of the 24-hour neighborhood is the increase in safety, with more eyes deterring crime. Density is good for the environment and makes our city safer and more livable and walkable.

One of Portland’s greatest strengths is its vibrant neighborhoods, and those most popular for shopping and eating out tend to be some of the densest. Portland’s young population wants to live in a 24-hour neighborhood that offers work and play within a few-mile radius, where they can get to everything without a car, and these new car-free developments are meeting that need.

In order to have this dense city, there are going to be trade-offs. Maybe parking congestion is one of them, and it isn’t a big enough issue affecting the majority of Portlanders to completely change the course of our city.

Portland’s strong population growth despite economic challenges during the recession indicates that our population will continue to grow. By the end of 2014, we should see apartment construction slowing considerably as land prices rise and rental rates flatten. Construction costs are continuing to rise 15 percent per year, city fees are rising, and the parking requirement will also add to the cost of development. With the single-family housing market improving, we’ll see more construction of those property types, as well as condos. So, the parking issue will be solved by the market somewhat.

We have so many smart, talented, creative Portlanders thinking about and planning our city’s growth and change, and working to make it continue to thrive. For that, we’re very fortunate. The apartment parking issue requires give and take on both sides, so that we continue having a city known worldwide for its livability and effective planning. We need to stay the course to increase density in support of this healthy, urban environment.

Robert Black is a vice president who specializes in multifamily investment and land sales at NAI Norris, Beggs & Simpson, a real estate brokerage and asset/property management company. Contact him at 503-273-0364 or [email protected].