"I scream, you scream, we all scream for ice cream parking!"
Parking is one of those topics that tends to generate powerful emotions. In my view, the core challenge is that we have a finite amount of space and many potential uses for that space. How people choose to allocate limited resources among alternative uses is the fundamental question of economics. If we want to ensure there is sufficient parking available, we need to think clearly about how our local government regulations affect the parking supply and demand. Let me use ice cream to illustrate.
People love ice cream, and they want more of it. They tell their local government to make sure they can get ice cream wherever they go. So the local government starts giving ice cream away on the street, for free. The people want even more ice cream. So the local government enacts a bylaw that all shops must supply ice cream to their customers. The shops are okay with that because they can cover the cost of the ice cream by increasing the price of the things they sell. The people want even more ice cream. So the local government enacts a bylaw that all homes must come with ice cream. Home builders are okay with that because they can cover the cost of the ice cream by raising the home's price. The people want even more ice cream. Because ice cream is freely available on the streets, in the shops, and at everyone's home, it is unlikely that a business will invest in opening an ice cream shop for fear they cannot cover their costs. So the local government decides to build their own ice cream shop. The municipal ice cream shop cannot cover its costs through ice cream sales, so the shortfall is covered by property tax.
Now replace the word "ice cream" with "parking" and "ice cream shop" with "parking lot" in the paragraph above. Parking is a classic example of an economic shortage caused (in part) by parking minimums required in our zoning bylaws and free on-street parking policies.
The cost of parking is distributed into our food prices, our home prices, and our property taxes. Whether we drive a car or not, we all pay for parking. If we want parking to be both plentiful and available, we need to think clearly about how our regulations incentivize or disincentivize the supply of parking in our regulated free market economy.
Here are three parking reforms that Donald Shoup (economist and professor of urban planning at UCLA) describes in his book “The High Cost of Free Parking":
Charge the right prices for on-street parking. The right prices are the lowest prices that will leave one or two open spaces on each block, so there will be no parking shortages. Prices will balance supply and demand for on-street spaces.
Spend the parking revenue to improve public services on the metered streets. Let people see directly where their meter money is being spent; don't let it go to 'general revenue'.
Remove off-street parking requirements. Developers and businesses can then decide how many parking spaces to provide for their customers.
Here are some of the books that have influenced my thinking on parking: