Parakeets need a nest box but not a "nest" in the traditional sense.
A typical Parakeet nest box measures about 10" by 10" by 10" with a hole in the front (like a bird house) and a back where you can remove the top half to check the chicks and clean it out.
In the bottom of the box, you place a wooden insert the same size as the box with a concave cut-out in the center (makes a shallow dish so the eggs stay in one place). You hang the box on the outside of the cage with the hole and a dowel (for perching) mated and secured up against a seed cup hole. No nesting material is used at all and the birds like it that way.
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