Why not? E.g. now the market price for where I live is to a first approximation something like 2000 EUR/month for an apartment on a single floor in a 4 floor house.

Meanwhile I can simply apply for a parking space right outside my place, and only need to pay something like a 250 EUR/yr road tax (depending on vehicle & weight etc.). That's a flat fee for the entirety of Nord-Holland (my "state"), I'd pay nothing for parking other than needing to apply.

Assuming a parking space is 6x3m = 18m^2 then 4x of those add up to 72m^2, a typical size for an apartment around here.

So if someone parking a car in a 18m^2 parking space had to compete with the market for real estate they'd need to pay 2000 EUR/month for parking their car, because we could otherwise build housing there.

That's before you even get to the problem that the fact that you can only build up to 4 floors around here is also an artificial government restraint, so the true market price of a 18m^2 parking spot is way more than 2000 EUR/month in the center of Amsterdam.

There's no reason to ban cars. You just need to make them pay a fair price for the land they're using and the problem will take care of itself.

If I were allowed to buy the parking spots on my street and build flats I would do it in an instant. Drivers get parking welfare from walking and cycling taxpayers and are blind to it. Not to mention that bearing the cost of a million dead poeple a year would affect behaviour a bit.