Tag Archives: parking pricing

Managing on-street parking: zoning is not the way

Park sign. CC image from Pixel Jones.

We don’t manage our limited parking resources very well. However, that leaves us lots of room to improve our policies.

A recent Freakonomics podcast entitled ‘Parking is Hell’ provides a nice entry-level synopsis of the challenges involved in using market forces to better manage this valuable resource. The podcast features interviews with parking scholars, including Don Shoup. They address the fallacy of the idea of ‘free’ parking, the idea of using price to better allocate this resource, and the practical challenges to better management of on-street parking (such as the abuse of handicapped parking placards, as well as the rampant illegality in parking practice).

Despite the cold, hard logic behind the idea of performance parking, it’s not an easy political sell. Similar experiences with de-congestion road pricing in Stockholm show reluctance at first, and then broad support for the program once the benefits can be demonstrated, and revenues directed towards locally-controlled improvements. Still, no one likes the idea of someone proposing an increase to your daily costs in exchange for uncertain benefits.

That risk-aversion applies to parking, too – and perhaps explains a great deal of the reluctance to embrace a whole host of parking reforms, both for on-street parking management, but also for zoning code off-street parking requirements. The evidence for the ineffectiveness of these requirements in managing on-street parking is huge; the unintended consequences are large.

Zoning requirements won’t manage on-street parking for you. Consider this case from Boston, where air quality regulations capped the total supply of off-street parking garages, but the city fails to manage on-street parking effectively:

The steep costs at our garages mean that only the well-off and the truly desperate ever wind up parking in them. The rest of us find ourselves in a never-ending chase for metered street parking, which is an absolute steal. Because the price is absurdly low for such a rare commodity—there are around 8,000 metered spaces in Boston—drivers are willing to circle the block for as long as it takes to find an opening, like vultures in search of prey. The $10-an-hour difference between a garage and a metered spot in Boston gives “drivers a license to hunt,” says Mark Chase, a local parking consultant,“but it’s not a guarantee of a parking place.” The result, naturally, is congestion. Studies from around the country have shown that as much as 34 percent of all traffic in downtown areas involves drivers just looking for parking spaces.

Meanwhile, Boston has set aside a ton of spaces for resident-only parking in neighborhoods, and it charges nothing for the permits to use them. And what happens when it doesn’t cost anything to keep cars parked on the street? They stay there. Today more than 311,000 vehicles are registered in Boston, and more than 87,000 of them have residential parking permits. Each of those cars takes up around 160 square feet—the size of a street spot—of prime city real estate.“You have some of the most valuable land on earth, and you’re giving it away for free to cars,” says Donald Shoup, a professor of urban planning at UCLA, and the author of The High Cost of Free Parking. “It’s preposterous.”

Enter a new development proposal, aiming to build car-free, promising not to rent to car owners and therefore not make Boston’s off-street parking problem even worse:

Paul Berkeley, president of the Allston Civic Association, said residents support Mariscal’s plan for an airy, green building, but said the no-car idea would not fly.

“It’s well-intentioned and it could be successful, but people felt that in that location there was too much of a risk of people having cars and just putting them in front of houses nearby,” he said.

So, they tried to reconfigure the development with 35 spaces for the 44 units. Even that is not enough to satisfy the zoning code, as the article notes that the current code requires an absurd two spaces per housing unit. Patrick Doyle notes that the real problem here is not with community skepticism about all the new residents being car-free, but with the absurdly low price for on-street parking. Such ignorance of the basics of supply and demand is not a recipe for good management.

Consider the opportunity costs. It’s not as if requiring parking only hits a developer in his/her pocketbook (though it does). Parking takes up a lot of space, and the geometric requirements for cars to circulate into a garage and have appropriate turning radii to get in and out often do not match up with the geometry of small urban lots ripe for infill development. In Atlantic Cities, Emily Badger writes about the same Boston development:

His proposal also highlights the hidden reality – true in cities everywhere – that our modern buildings largely take their first architectural cues from cars.

“When you remove the car component as the main design challenge,” Mariscal says, “your way of thinking about design is completely different. The possibilities that open for a more environmentally friendly and human design – they are endless.”

Furthermore, the kinds of older neighborhoods we love in our cities usually pre-date zoning requirements for parking. Their very existence is non-conforming. When you suddenly add a very different geometry to design around as a legal requirement (the car and associated parking), you fundamentally change the shape and design of the kind of buildings you build and of the city that will result.

Do your requirements actually make sense? It seems like a basic question to ask. However, lots of requirements exist because they were the default when a code was written, often without much in-depth consideration or any easy mechanism to regularly re-evaluate them.

Consider New Haven, CT. The City asked some out-of-town developers what it would take to make New Haven an attractive place for them to do business. In the vein of a dating game show, the city wanted to know what a developer’s ‘turn offs’ might be:

Demands for lots of parking ranked high on the turn-off list.

“You asked what is an automatic turn-off. … Market research shows [the amount of parking] needed is X. We flip open the zoning code and we find out the requirement in the zoning code is two times that,” replied Patrick Lee, co-founder of a Boston firm called Trinity Financial. “It is a lightning rod … Oftentimes we often just say, ‘That one is too, too hard.’ … When the zoning catches up with the market or gets close to it, we’ll come on back and have the conversation [about building]. Even if you’re doing surface parking, it eats up so much land it ends up being a cost-driver in your pro forma.”

This raises the question: why even require parking at all if the market is a) willing to forgo it, or b) willing to build it? Eliminate that problem, and you don’t have to worry about forcing your zoning to “catch up” to the market. At the very least, some mandatory periodic review of the requirements (in the same vein as the zoning budget idea, but for a specific provision of the code) would help ensure the requirements in place make sense.

None of this changes the need for rational management of on-street parking. Zoning requirements cannot do that for you.

Parking, misunderstood

CC image from Atomic Taco

Let’s take a trip up and down the Northeast Corridor and look at recent parking news.  All three show some misunderstandings about parking, cities, and markets. Time for some Shoup reading assignments!

New York:  Looking to discuss changes to the zoning code parking requirements in downtown Brooklyn, the New York Times comes down with a severe case of windshield-itis:

In traffic-clogged New York City, where parking spaces are coveted like the rarest of treasures, an excess of parking spaces might seem like an urban planner’s dream.

Yet city officials, developers and transit advocates say that in Downtown Brooklyn, there is this most unusual of parking problems: There is simply too much of it.

Admittedly, many urban planning principles seem counter-intuitive at first glance.  When you add in the challenge of altering a regulatory status quo (such as modestly changing the zoning code, as is proposed in Brooklyn), the weight of conventional wisdom is enormous.

Still, it’s interesting to see a parking glut framed as an “urban planner’s dream.’ (particularly when compared against later articles from DC) It’s sure not my dream, either in terms of result (excess parking) or process (via the unintended consequences of regulation).  Building parking is expensive, so we don’t want to build too much of it.  Requiring us to build too much means that those costs just get passed along to the rest of us.

It’s worth noting that New York is not proposing to eliminate these requirements and rely on the market to determine how much parking to provide, they are merely reducing the requirement from mandating 40% of new units have spaces (in a neighborhood where only 22% of households own cars!) to 20%. Why not reduce it to zero?

Likewise, there are likely opportunities for new developments to make use of the excess parking already built. Hopefully, those kinds of arrangements would allow for new buildings to still be parking-free if the market so desires.  Nevertheless, a reduction in the requirement is moving in the right direction.

Philadelphia: A few miles south on the NEC, Philadelphia might be backtracking on parking, rather than moving in the right direction. Philly has already altered their zoning code to eliminate parking requirements in the city’s dense rowhouse neighborhoods.  Now, members of the city council want to roll those changes back. The council’s interference in a code change that’s only been in effect for a few months is troubling, as is the lack of reasoning.  From the Inquirer’s article on the topic:

“Most developers wish that they didn’t have to get approvals from anybody,” says Clarke. “I have to be responsive to the needs of the residents. They don’t have enough parking.”

Perhaps this is where a dose of that counter-intuitive planning wisdom would be useful.

The reasoning put forth for changing the rules back is equally troubling, particularly given the Philadelphia Planning Commission’s charge in rewriting the zoning code: reduce the need to grant so many variances.  Attempting to graft a comprehensive zoning ordinance onto a pre-existing (and pre-automobile) cityscape is bound to be a challenge no matter what; but pushing a code to require elements so geometrically opposed to the pre-code fabric is foolhardy.  Such changes, often made in the name of providing more parking only end up inducing unintended consequences.  From the Next American City article:

Gladstein said the bill’s proposed changes could set Philadelphia back on the path back to when the city issued more variances than nearly any other big city in America because of unrealistic demands in the zoning code.

“There are many instances in rowhome neighborhoods where you simply cannot provide parking by right because of factors like narrow lot lines,” she said. “We thought these changes would send too many cases to the zoning board.”

Gladstein also noted that lack of a parking requirement in the original code was intentional, as on-site parking, which often manifests itself as a front-loading garage, actually diminishes the supply of public parking spaces.

A code that doesn’t respect geometry, doesn’t reflect the city’s history, and achieve its stated goals is a bad code. Here’s to hoping those changes do not go into effect.

DC: In the District, the parking conversations aren’t focused on zoning (yet! – but they will be, and soon), but rather the management of on-street parking spaces. Policy changes take a different tack than in Philadelphia – instead of providing parking for residents via zoning code requirements, the city is strengthening on-street protections for residents with parking permits.

The reaction is all over the map – Ward 1 Councilmember says this is about a future that “discourages car ownership,” yet the goal of enhanced residential permit parking protections is about “striking a balance in favor of those who are residents with stickers who paid for them.”  Did those residents pay enough for a scarce resource?  If the price reflected the scarcity of spaces, would there be as much of a parking problem?  And how does making on-street parking for residents easier discourage car ownership?

Other elements of the Post parking article talk about the difficulty of parking for non-residents visiting the city, as well as the city’s efforts to re-purpose some curb space away from parking and towards other uses (such as protected bicycle lanes) – but fall into the trap of equating all things parking together.  Metered, permitted, for residents, for visitors, using curb space for parking or for other uses – these are all big differences, and conflating them all together is problematic, and increases the chances of misunderstanding.

More on parking requirements and impacts to the city

Portland parking meter. CC image from Ian Broyles

Several tangentially related articles on parking over the past few weeks: 

In a previous post on zoning and unintended consequences, I linked to an Oregon Public Broadcasting piece on zero-parking development in Portland, OR – taking advantage of a clause in the zoning code that removes the requirement to provide off-site parking in developments around high-frequency transit corridors.  The key word is in removing the requirement, as the developers are free to provide on-site parking if they wish, but are no longer required to do so.  And may have decided to forgo off-street parking entirely.

Portland’s Willamette Week followed with a feature piece on the same issue a month later. Unfortunately, the writer frames the rule as letting developers off the hook for something they ought to pay for, like they were building bathrooms without toilets:

The Portland City Council more than a decade ago created this exemption—a huge financial benefit to developers—to increase density and discourage people from owning and driving cars.

If there’s a single fragment in the zoning code that encapsulates the ambition of city planners and the ethos of Portland, this may be it.

But the policy has its costs, and nearby residents such as Gold-Markel are paying for it.

Throughout the article, the ‘problems’ of this policy are presented in terms of spillover parking – that is, the residents of the new parking-less developments did not get rid of their cars entirely, and now park them on the street.  One obvious solution would be to manage parking on the street via pricing, permits, and many other available tools – rather than the blunt instrument of parking space requirements in the zoning code.  The zoning code works best when roughly governing broad land use and built form.  It is not a particularly strong management tool.  Nothing is mentioned about the cost to residents and to the city as a whole of requiring this expensive construction.

Along the same lines in DC (which does have some residential parking management programs in place), a local ANC recently signed off on a parking-free development near a metro station – but only in exchange for the promise that residents of the new building would not be allowed to get Residential Parking Permits for their vehicles.  On the one hand, the existence of a management program ought to help mitigate the impacts of such construction; on the other, the fact that the DC project had to negotiate to build without parking in the first place opens the door to “excessive localism” in Matt Yglesias’ terms.

Back in Portland:

Hales tells WW that when the city was rewriting the zoning code in 2000 to eliminate the parking requirement, he never thought developers would actually build apartments without parking.

“We were trying to get developers to put in one [parking] spot instead of two,” he says. “I certainly wasn’t smart enough to anticipate that banks would finance projects with no parking whatsoever.”

The simple fact is that parking doesn’t always pay.  Often, the economic case for it is quite weak if it isn’t seen as an absolute requirement (in either the legal sense or in terms of feasibility).  Another interesting (but very different case) is Yankee Stadium, where several large new parking garages adjacent to the new ballpark have defaulted on their bonds thanks to low utilization.

This situation is different from a run-of-the-mill zoning case, but it dramatically shows the cost  (and the lack of a return) in building too much parking.  With that kind of cost in providing parking when demand is low, it’s no wonder that one of the developers in the OPB piece made the claim that “Parking a site is the difference between a $750 apartment and a $1,200 apartment.”

In a more quantitative analysis of parking reforms, the Atlantic Cities looks to London:

In an upcoming issue of Urban Studies, researchers Zhan Guo and Shuai Ren of the Rudin Centre for Transport Policy and Management at NYU consider two core questions when it comes to London’s reform. First, does the parking minimum truly create more parking than people want? Second, is a parking maximum necessary to promote sustainable transport, or will the market alone take care of it?

On the first question, Guo and Ren returned a pretty definitive yes. They examined parking supply at 216 residential developments in London approved from 1997 to 2000, when the parking minimum was in effect, and then roughly 8,250 developments approved from 2004 to 2010, after the minimum was removed and the maximum imposed. Before parking reform, developers created 94 percent of the required minimum; after it, they created just 52 percent of the old minimum.

Those parking spaces that were formerly required obviously were not free to build.  As for parking maximums (that is, a requirement that a development not build more than a given amount of off-street parking):

Onto question number two: the effectiveness of the new maximums. Since the purpose of London’s parking reform was to promote alternative transportation, the researchers looked at how parking supply fluctuated in areas with high density and transit access after 2004. What they found is that that the actual parking supplied was higher in Central London, where density and access are greatest, compared to adjacent outer areas.

Guo and Ren call this finding “unexpected.” They suspect that local authorities may want to keep a high maximum (and therefore allow more spaces) to avoid a parking spillover onto already crowded streets in Central London. Another explanation is that the market simply wants more spaces there: people who can afford to live downtown are willing to pay a premium for parking.

I can’t see much problem in allowing parking to be built where the market is willing to bear the cost of construction and operation.  Likewise, a developer of a non-residential property could easily see value in providing a great deal of parking as a draw to their development.

None of this changes the fact that a robust system for managing on-street spaces will likely be needed in any case.   Such a program in Portland could easily soothe the concerns of nearby residents (though many of their concerns seem to be about the very existence of the newer, dense development in the first place); and a more market-responsive system in DC (hypothesis: most of DC’s RPP stickers are far too cheap relative to the demand for on-street spaces) might have avoided some of the negotiations in Tenleytown.

Parking, lots and lots of parking!

Parking Meter

There’s been a horde of great parking posts in the last few days:

First, Jarrett Walker documents San Francisco’s new adventure in market pricing for on-street spaces:

The goal is to ensure that there’s always a space available, so that people stop endlessly driving in circles looking for parking.  People will be able to check online to find out the current parking cost in the place they intend to visit.  Parking garages will have a better chance of undercutting on-street rates, so that those garages can fill.  If you’ve ever driven in San Francisco, you know that it’s hard to decide to use a garage because, well, if you just drive around the block once more, you might get lucky.  Under SF Park, if you just drive around the block once more, you’ll probably find a space, but it will cost more than a garage, especially if you’ll be there for a while.  So drivers are more likely to fill up the garages.

Jarrett illuminates some of the problems with truly dynamic pricing – ideally, you’d want to have a price set for a given location and time so that a driver knows what they’ll likely have to pay prior to beginning their trip.  This is similar to all sorts of other goods, where the prices are fixed for consumers, even if the actual prices fluctuate more often.

Jarrett also notes the potential for San Francisco to predict and target prices based on the data these meters will collect.  The city has collected lots of useful parking data, the question is now about using that data and infrastructure effectively.  Walker notes:

In a recent post on congestion, I observed that current road-pricing policy requires us to save money, a renewable resource, by expending time, the least renewable resource of all.  If you’ve ever circled a block looking for parking, while missing or being late for something that’s important to you, you know that the same absurdity is true of our on-street parking policy.  SF Park deserves close watching.  And if it doesn’t work well, ask yourself:  “Is it because it doesn’t make sense to charging for parking based on demand, or is it because they were too timid to do it completely?”  The answer will almost certainly be the latter.   The policy itself relies only on free-market principles that already govern many parts of our economies, because they work.

Indeed, market forces do work.  Similarly, Tyler Cowen raised the subject in this weekend’s New York Times. Cowen focused on all aspects of Donald Shoup’s excellent book The High Cost of Free Parking. In addition to market pricing for parking spaces in order to ensure efficient use, Cowen also addresses parking development requirements:

If developers were allowed to face directly the high land costs of providing so much parking, the number of spaces would be a result of a careful economic calculation rather than a matter of satisfying a legal requirement. Parking would be scarcer, and more likely to have a price — or a higher one than it does now — and people would be more careful about when and where they drove.

The subsidies are largely invisible to drivers who park their cars — and thus free or cheap parking spaces feel like natural outcomes of the market, or perhaps even an entitlement. Yet the law is allocating this land rather than letting market prices adjudicate whether we need more parking, and whether that parking should be free. We end up overusing land for cars — and overusing cars too. You don’t have to hate sprawl, or automobiles, to want to stop subsidizing that way of life.

Market Urbanism chimes in specifically about  minimum parking requirements, taking note of New York City’s efforts to change their laws (including references to Streetsblog’s coverage of the issue earlier this year). Many more also chime in, including Cowen’s personal blog – with posts expounding on his NYT article, Arnold Kling’s response, and Cowen’s response to the response – all worth reading.  As usual, Ryan Avent also responds.

In a similar vein to the parking discussion, Ryan Avent also offered this paper up for review, drawing the conclusion that congestion pricing works best in places that have good transit networks – i.e. where there is an effective alternative to driving.  The abstract notes that the two congestion pricing successes had solid transit systems to rely on.  Ryan notes that congestion pricing can be used for improving transit, but it might be politically necessary to front the costs of those transit improvements prior to implementing the congestion charge.

The limited polling prior to the death of New York’s congestion pricing plan also suggested this – dedication of revenues to transit improvements was crucial for garnering public support.  New York, of course, has the advantage of a transit system as an alternative means of transport.  If a city without such infrastructure were to implement such a plan, might some borrowing against future revenues (similar to Los Angeles’ 30/10 plan) be in order?