Earlier quoted context omitted.
You fix it over time, by allowing (but not forcing!) people to build taller. Also check out http://urbankchoze.blogspot.com/2014/04/japanese-zoning.html
And get rid of parking minimums.
one approach would be to require landlords to list the cost of parking separately in their lease agreements, and allow renters to opt out of that cost independent of the rest of the lease.
edit: oh, and have city-wide permit parking as well, so that municipal street parking is priced properly too.