Is this a parking spot of the optional, nice-to-have variety, or of the mandatory, can't-live-without-a-car variety? There are lots of different lifestyle tradeoffs in cities, and different things that might cause you to step back and consider moving. For me personally, I was sick of driving. Whether I have to drive everywhere is much more important than the size of my living space. I don't particularly mind small living spaces, especially if it means I can often be out of my small living space just by walking out the door into the city. Though I do prefer them to have some good natural light.

Of course, I didn't move to NYC either, so I don't know whether its particular set of tradeoffs is worth it overall.