Rapid urbanization causes severe parking problems in developing cities. Parking policies cannot be strictly applied in some cases because of varying claims by developers. The variables such as household density, car ownership, and availability of public transport, and the new challenges such as sustainability, climate change, and sustainable mobility still remain insignificant in parking policies. The appropriate parking policies are immediately needed; however, the question is “which policy is appropriate for which city?” In this study, the evolution of residential parking policies is analyzed through the policy analysis process and parking survey methods. In conclusion, maintaining the status quo and not monitoring the applied policy results during the peak period of urbanization caused an irreversible spillover problem. In particular, some exemptions, such as the derogation payment and lack of public district parking lots, increased the pressure on the on-street parking capacity and sustainability of streets. A case study parking survey in a large-city center shows that parking demand is exceeding the capacity by 166% for average daily occupancy on weekdays and 111% on weekends in 2022, compared to 61% in 2015. Five policy alternatives are developed and the “zone parking policy” is concluded to be the most appropriate one for districts while the “mobility level of zones” needs more action at the city level.