Is parking too cheap?

Well, what higher prices on parking accomplish is to make it operate more efficiently. Instead of having drivers circle around the block endlessly in search of a street parking space, you choose a price so that a certain number are likely to be open at that time. So market pricing should actually make it easier to park, and you will be paying for the true cost of the space. Might reduce some congestion too.

This is in contrast to the default road warrior response to parking shortages: which is forcing an increase in supply through bulldozing and/or zoning. This kind of supply increase actually doesn't work, since it just fills up from induced demand. Instead, the market price approach is about preserving the city as a walkable place for people, instead of an industrial zone for cars, and making it possible to reliably find a parking space.

So I wouldn't say that pricing is about making it less attractive to drive. It's not. If that were your goal then you could achieve that by keeping the status quo. After all, the hassle of finding a spot is enough to turn drivers away presently. The point of market pricing is to make it less hassle to find a spot when you need it, while also preserving the city.

In a nutshell: instead of simply increasing the raw supply of parking spaces, market-based parking systems focus on supplying a certain percentage of open parking spaces.
 
The argument against paying for news by at least one commenter wasn't that he/she couldn't afford it but that the companies already made enough money.

And, why shouldn't companies make money from the services they provide?

The Times costs $32 per month for online access - that's pretty damn cheap for all the information it provides.
 
Pricing news and information high means its also less attractive, so society loses out.

News is subjective. Parking isn't. You can get all the free "news and information" you want from the Communist Party of America, or Alex Jones, or whatever. And people do. But if you believe in real, (mostly) objective, professional journalism, you should be willing to pay for The Globe, The Wall Street Journal, etc.
Oh, and finding away around a paywall isn't the same as "price and demand".
 
Well, what higher prices on parking accomplish is to make it operate more efficiently. Instead of having drivers circle around the block endlessly in search of a street parking space, you choose a price so that a certain number are likely to be open at that time.

So I wouldn't say that pricing is about making it less attractive to drive. It's not. .

It accomplishes the first part by making it less attractive to drive = removing cars from equation = spot opening. Yes, some go directly to garage, but its a mix.

And, why shouldn't companies make money from the services they provide?

The Times costs $32 per month for online access - that's pretty damn cheap for all the information it provides.

Because not all companies provide the same kind of service.

Theres a valid reason to get upset if the water company seeks a 100% profit, not so much if the porn company does.

Id put news closer to water.

And $32 is over 4 hours of minimum wage work.

You can get all the free "news and information" you want from the Communist Party of America, or Alex Jones, or whatever. And people do. But if you believe in real, (mostly) objective, professional journalism, you should be willing to pay for The Globe, The Wall Street Journal, etc.
.

Thats the problem. From the perspective of society, do we want people filling their heads with crackpot news because its free, while actual facts arent?
 
It accomplishes the first part by making it less attractive to drive = removing cars from equation = spot opening. Yes, some go directly to garage, but its a mix.

It's not so simple. After all, cars are already "removed from the equation" by the difficulty of finding a space. It's a cost expressed in units of time rather than money.

I think the higher prices make people think about using the time they do occupy the space more efficiently and encourages turnover. Whereas right now it's tough to find a spot, but there's little incentive to leave in a timely fashion once you occupy it.
 
It's not so simple. After all, cars are already "removed from the equation" by the difficulty of finding a space. It's a cost expressed in units of time rather than money.

I think the higher prices make people think about using the time they do occupy the space more efficiently and encourages turnover. Whereas right now it's tough to find a spot, but there's little incentive to leave in a timely fashion once you occupy it.

Not everyone thinks the same though. A lot of the free market stuff being efficient is based on the diea that people are prudent and rational - many aren't. 'Some people simply dont give time a value.

I have a friend who would rather circle for 30 minutes (not an exaggeration) in order to find an open (free) street spot rather than paying $10 in a garage ($5 for him since wed split the cost). And he doesnt want to take the T because that costs him.

Make parking cost more than T, and hell jump right on.
 
Thats the problem. From the perspective of society, do we want people filling their heads with crackpot news because its free, while actual facts arent?

Real reporting costs money. Blogging your opinion and calling it news doesn't. If both are free, real reporting goes away and the crackpot news stays.
 
I have a friend who would rather circle for 30 minutes (not an exaggeration) in order to find an open (free) street spot rather than paying $10 in a garage ($5 for him since wed split the cost). And he doesnt want to take the T because that costs him.

Circling for 30 minutes probably costs more in gas than that.

Anyway, it doesn't take everyone to be rational. That'll never happen (e.g. your friend). But a small percentage of people can make a big difference, oddly enough. Like in the case of the Stockholm congestion charge, nobody could figure out who exactly was taking fewer trips, but it was working.

Maybe an analogy will help: We normally pay for items like bread at market prices (or something closer to it). It's not an effort to make people eat less bread. It's not an effort to penalize people for eating bread either. It's just the best way to distribute commodity goods in an efficient way that ensures everyone has the opportunity to obtain those goods. And in a capitalistic, free-market society, the supply of open parking spaces should really be treated no differently than that.
 
Circling for 30 minutes probably costs more in gas than that.

Anyway, it doesn't take everyone to be rational. That'll never happen (e.g. your friend). But a small percentage of people can make a big difference, oddly enough. Like in the case of the Stockholm congestion charge, nobody could figure out who exactly was taking fewer trips, but it was working.

Maybe an analogy will help: We normally pay for items like bread at market prices (or something closer to it). It's not an effort to make people eat less bread. It's not an effort to penalize people for eating bread either. It's just the best way to distribute commodity goods in an efficient way that ensures everyone has the opportunity to obtain those goods. And in a capitalistic, free-market society, the supply of open parking spaces should really be treated no differently than that.

For the first point, I know that, but as I said, many people dont make rational choices. People will drive 10 mins to save 3 cents a gallon on gas. Thats all of 35 cents for a fillup.


Thats completely wrong, because you ignore all the negative externalities, the congestion, the pollution. If we double the price of bread....nothing happens. people buy less bread. Not an issue. If we halve the price, people buy more bread. Again, so what?

But there are very serious consequences to society when were talking about road pricing and parking.

Real reporting costs money. Blogging your opinion and calling it news doesn't. If both are free, real reporting goes away and the crackpot news stays.

A solution to this problem is the UK model, where BBC gets funded by everyone. That ensures real reporting stays, but is very accessible.
 
So on a related note, I was looking at finishing the basement of my building (9 total units, but 3 per street number, when I say my building I am referring to my street #) and converting it into two two-bedroom apartments...

But I live in brookline....

but because I do not have the brookline mandated four parking spots it is looking highly unlikely that this project will ever extend beyond where it is right now. Zoning allows for an appeal to halve the number of required spots to two, but my building is the center lot, so there is no way that I can meet the requirement of those two spots. PLUS if I make any change that increases the square footage by more than 15% I need to bring the entire building up to code in terms of the number of parking spots.... which means that instead of needing four spots, I'd need ten (even though the two upstairs neighbors each own a parking spot nearby, brookline zoning calls out that the parking must be immediately on the lot). Even if I appealed and got that down to five, that still is: more cars than could fit in my back yard according to code (even if I got an easement from the adjacent parking lot).

How does this relate to this discussion?

Well, what higher prices on parking accomplish is to make it operate more efficiently. Instead of having drivers circle around the block endlessly in search of a street parking space, you choose a price so that a certain number are likely to be open at that time. So market pricing should actually make it easier to park, and you will be paying for the true cost of the space. Might reduce some congestion too.

This is in contrast to the default road warrior response to parking shortages: which is forcing an increase in supply through bulldozing and/or zoning. This kind of supply increase actually doesn't work, since it just fills up from induced demand. Instead, the market price approach is about preserving the city as a walkable place for people, instead of an industrial zone for cars, and making it possible to reliably find a parking space.

Your posts always have some sort of panic that Boston is about to be leveled and turned into Dallas or Orlando.... Anyways...

I see this as two separate issues-- there are the existing buildings like mine, which should be permanently grandfathered into the lack of parking requirement, and the new ones. The new ones are the ones that need to be regulated with the minimum requirements because the developers have access to capital and the substantial resources that it takes to add an appropriate amount of parking.

If developers are left to their own devices then they'll say "Oh, there is street parking available" and maximize their own profits at the expense of the neighborhood parking situation, which is exactly what would have happened here if they were given a choice. They could have easily added another floor of revenue (condos or apartments) in that building and completely screwed over the neighborhood by adding another 20/30/whatever # of units without a single parking spot, so clearly, there needs to be a minimum. The revenue of a resident parking garage (which is basically what is needed for the higher density that boston needs around transit) is nowhere close to the revenue that can be derived from apartments or condos. Furthermore, given the incredibly fractured property ownership and zoning laws, there isn't a damn chance of more off-street parking ever becoming available without outside pressure on developers. There simply isn't enough room or a way to add more spots without forcing developers to accommodate cars. I see plenty of cars in Allston/Brighton that go weeks without having the snow cleared off of them because there is no market pricing applied to the resident stickers. I think we probably agree that market pricing should be in effect for resident overnight permits (as it is in Brookline where it is on the cheaper side, but $100 month). The reality is that it isn't going to happen in Boston, so it's not really worth talking about.

Another solution could be establishing how many overnight spaces are readily available within a 1/4 mile radius of a building instead of specifically on the lot that is being developed. For example, if a parking garage with capacity for 1,000 cars was built at the corner of Gorham and Brainerd , developers could buy claim to those spaces and then use that to offset to not need those parking spots on a specific site.
 
But ideally the market will solve this problem. A developer wouldn't build units with no parking if people would say, I need parking and there is none around there, ergo, I will not live there. At first, these places will be built, and people without cars, of which there are plenty, will move in. As you along the demand curve, developers will include them in their buildings. Or an person will come along and build a garage to satisfy the demand.

The point is, if you or any developer, wants to build a unit and thinks you can rent it to someone without a parking space, then go for it. As the demand for parking grows, either you or another will be enticed to supply it.
 
It probably won't be leveled right away, but you describe well the slow-motion bulldozing of usable space into parking lots, and how zoning shuts down development that we desperately need. We need more housing units in Boston and the parking requirement makes that much more difficult than it should be.

I heartily disagree that we need to force new developments to build a minimum number of parking spaces. For one thing, the developers will know their market and can figure out if they need to build parking to serve that market. For another, can you point to the part of the Constitution, or some document of fundamental human rights, which guarantees free parking on the street? That's public right-of-way and a commons, not someone's personal storage space which the rest of us must subsidize.

The idea that we must strangle development in the neighborhood so that a handful of people can monopolize a bunch of free, unregulated commons parking spaces is utterly bonkers. It's the height of arrogance by the selfish, entitled cult of "free" parking to impose that kind of cost on the rest of the community. The rest of us must have our rents go up so that a small minority of car owners can claim "property rights" over a piece of the public commons? The community must suffer from lost opportunity and housing so a select few vehicle owners can monopolize public land for private purpose? At what price "free" parking? I call that extortion.

I did actually have 60 Brainerd and the nearby developments in mind recently. They are supposed to be part of a "Green" district where people are supposed to live in a more "environmentally sound" manner. Creating a whole load of parking spaces seems completely counter to that goal. Not to mention, Allston is an area with already low rates of car ownership, under 50% particularly in nearby census tracts. Brainerd Road doesn't have resident parking permits, so it's not even managed at all. The demands of a small number of car owners that they be given free parking at the expense of the majority -- the non-car owners -- in the area is extortion, plain and simple.

It's also terrible public policy. The last thing we need to do is add more cars in that area. It's bad enough as it is. The idea that building more off-street spaces is going to completely change the character of Allston into West Roxbury is ridiculous. But there you have it: the zoning laws were written by a few ideologues who thought that way. No debate, no democracy. Just a small batch of selfish local car owners forcing the majority of non-car owners to subsidize their vehicles' storage needs.

Sometimes I think we ought to just ban street parking all together, like it used to be. That'll remove the incentive to strangle development in the name of protecting imagined "free parking rights" and it'll also promote a market for garage space. But that's unlikely, so I agree that resident permits should at least cost market price and be monitored.
 
It probably won't be leveled right away, but you describe well the slow-motion bulldozing of usable space into parking lots, and how zoning shuts down development that we desperately need. We need more housing units in Boston and the parking requirement makes that much more difficult than it should be.

I heartily disagree that we need to force new developments to build a minimum number of parking spaces. For one thing, the developers will know their market and can figure out if they need to build parking to serve that market. For another, can you point to the part of the Constitution, or some document of fundamental human rights, which guarantees free parking on the street? That's public right-of-way and a commons, not someone's personal storage space which the rest of us must subsidize.

The idea that we must strangle development in the neighborhood so that a handful of people can monopolize a bunch of free, unregulated commons parking spaces is utterly bonkers. It's the height of arrogance by the selfish, entitled cult of "free" parking to impose that kind of cost on the rest of the community. The rest of us must have our rents go up so that a small minority of car owners can claim "property rights" over a piece of the public commons? The community must suffer from lost opportunity and housing so a select few vehicle owners can monopolize public land for private purpose? At what price "free" parking? I call that extortion.

I did actually have 60 Brainerd and the nearby developments in mind recently. They are supposed to be part of a "Green" district where people are supposed to live in a more "environmentally sound" manner. Creating a whole load of parking spaces seems completely counter to that goal. Not to mention, Allston is an area with already low rates of car ownership, under 50% particularly in nearby census tracts. Brainerd Road doesn't have resident parking permits, so it's not even managed at all. The demands of a small number of car owners that they be given free parking at the expense of the majority -- the non-car owners -- in the area is extortion, plain and simple.

It's also terrible public policy. The last thing we need to do is add more cars in that area. It's bad enough as it is. The idea that building more off-street spaces is going to completely change the character of Allston into West Roxbury is ridiculous. But there you have it: the zoning laws were written by a few ideologues who thought that way. No debate, no democracy. Just a small batch of selfish local car owners forcing the majority of non-car owners to subsidize their vehicles' storage needs.

Sometimes I think we ought to just ban street parking all together, like it used to be. That'll remove the incentive to strangle development in the name of protecting imagined "free parking rights" and it'll also promote a market for garage space. But that's unlikely, so I agree that resident permits should at least cost market price and be monitored.

Once again, you're either ignoring or not comprehending what I am saying-- then turning it around into a conspiracy where a small batch (which by your own admission is not small, and is at worst, 40%) majority of the population enslaving the rest of the population into subsidizing their parking.

Not to mention that you and I both know that the reason that car ownership is low there is because of college students that live in the area. Insurance is also about 50% more than what I pay. I know someone who stopped filing insurance claims after four smashed/broken/kicked off mirrors and threesmashed windshields.

Developers do what is in their best interest. It is in their best interest to maximize their net revenue from the lot.

Here is a simple example of why single level parking is going away and why there will not be a line of bulldozers leaving nothing but parking lots in their wake.

Look at the lot behind CVS-- It fits maybe 30 cars, $200/month per spot (not including revenue from towing) so call it $6,000/month of revenue from that parking lot. call overhead costs of $100/spot (probably on the high side) and they are netting about $3,000 a month.

Now look across the street at the four buildings, say each one is a duplex, four bedrooms each level, 8 bedrooms total, across 8 buildings, so 32 total bedrooms. With rent averaging $900/bedroom, the revenue is about $29,000 per month. Now figure overhead costs of roughly $500/bedroom (similar to my cost structure, excluding debt service, but with brookline taxes, so that is probably generous), and they are netting about $13,000 a month.

Now look at the revenue in a parking garage in the same amount of space as that parking lot, call it 25 spaces per level, but with 6 levels (3 underground, one at grade, 2 above) and a price of $300 a month.... $45,000 a month in revenue and call the costs at $200/spot a month the owner is only going to net $15,000 a month for roughly twice the amount of space as those houses across the street take up, so the net revenue per square foot (even at market prices) is roughly twice that of housing.

There is no way in hell that any developer would include a single parking spot when unimproved, early 20th century housing provides almost twice the net revenue of a parking garage.

The reason that driving in that area is bad is because of the intersection between the T, comm ave, and harvard ave. Because of the lack of masspike access and unconstructed inner belt, anyone wanting to drive to Cambridge or the pike needs to drive through that area.

Secondly- I never said that the assumed garage parking was free-- just that a spot had to be available. If you don't want the spot then sublet it to someone who does.

Thirdly-- green is just a goal that everyone has but, like free parking, doesn't want to pay for. But once the true costs become apparent (like unreliable electricity that costs 2x more than conventional sources), the support disappears. In the meantime, politicians will settle with half compromises and false promises.

But ideally the market will solve this problem. A developer wouldn't build units with no parking if people would say, I need parking and there is none around there, ergo, I will not live there. At first, these places will be built, and people without cars, of which there are plenty, will move in. As you along the demand curve, developers will include them in their buildings. Or an person will come along and build a garage to satisfy the demand.

The point is, if you or any developer, wants to build a unit and thinks you can rent it to someone without a parking space, then go for it. As the demand for parking grows, either you or another will be enticed to supply it.

See above response regarding revenue comparison.

Because of zoning, large scale parking to satisfy that demand (even if full market rates were in effect) will never be built and because of political realities, free parking will never go away. If the parking minimum went away developers would treat the on street parking like commons and simply overwhelm the streets with cars, my math proves that. That is why there needs to be a parking minimum.
 
The on-street parking is a commons. It's completely ridiculous to force developers to throw away money, to force residents to throw away money, and to force the city to throw away money, just to ensure that there will be "free" parking on the street. That's not "free" at all. That is costing all of us a lot of lost housing and opportunity. And it fills up anyway because it's not resident-permit patrolled. I lost count of the out-of-state plates that were parked there when I stopped by last week.

Yes, college students live there. So do many young professionals. There are also plenty of families. About 50% of them do not have access to cars. That's the character of the neighborhood. Why do you keep on insisting that Allston needs a minimum parking requirement of 2 vehicles per unit when half the people don't even have a car, and most of the rest don't have more than 1?
 
If the parking minimum went away developers would treat the on street parking like commons and simply overwhelm the streets with cars, my math proves that. That is why there needs to be a parking minimum.
Or residents would buy fewer cars.
Or people without cars would move there.
Or renters will only be willing to move into developments that include parking (i.e., your math becomes outdated as the value of a parking spot skyrockets).
Beacon Hill is a great example of an area where the streets have been "overwhelmed with cars." My wife moved there when she first came to Boston (with her car). She used to circle the neighborhood looking for a spot for as long as an hour sometimes (she was a grad student and had no money for garage parking). She did this for 6 months and then said "fuck it" and sold her car. During the 13 years since she's been car free. The lack of free parking caused her to change her behavior. That's a good thing!

This is the best paragraph I can remember reading on the folly of parking minimums. Well said Matthew:
The idea that we must strangle development in the neighborhood so that a handful of people can monopolize a bunch of free, unregulated commons parking spaces is utterly bonkers. It's the height of arrogance by the selfish, entitled cult of "free" parking to impose that kind of cost on the rest of the community. The rest of us must have our rents go up so that a small minority of car owners can claim "property rights" over a piece of the public commons? The community must suffer from lost opportunity and housing so a select few vehicle owners can monopolize public land for private purpose? At what price "free" parking? I call that extortion.
 
I heartily disagree that we need to force new developments to build a minimum number of parking spaces. For one thing, the developers will know their market and can figure out if they need to build parking to serve that market

Matthew's thesis is great, but fails here--but only in a way that makes his point. Developers are good at externalizing the costs of their developments. If they can push off on the neighborhood any costs, they will--as with traffic and utility hookups.

In a functioning market, units that had by-right parking (on-street or on-premise) would be more valuable, but the developer would have to make or buy such rights. For on-street by-right parking, the Developer would have to pay the *neighbors* to "buy in" Over time, as neighbors "cashed out" their parking rights, the neighborhood would grow less car-dependent. Ultimately somebody could "buy out" the on-street parking entirely (by using congestion fees, for example)

(see also the theories on fines and payoffs to neighbors as an alternative to zoning). Property rights and free transactions, rather than mandates, will make more people more happy.

[EDIT] One way to build support for higher parking fees would be to offer 100% of the the "overage" to abutters as a property-tax rebate. People would then be fully participants in the "market" for the parking, choosing either to spend their rebate on parking for themselves, for their guests, or to pocket it entirely and lobby for even higher parking rates. Infill development would been seen as more parkers, yes, but also a source of more parking revenue (higher prices...and a higher rebate).
 
^ Two ideas to counter the effect of externalizing parking onto the neighborhood:

- Market-rate overnight street parking. I have no idea why so few people bring this up. The point here is that if an off-street parking spot in Allston rents for $100/mo,then why is an Allston/Brighton parking permit $10 a year? Even pegged at 60% of the market rate off-street parking cost, I think $60/mo would change a lot of car-owners' behaviors in Allston, and cause developers to provide the right amount of private parking without skewed incentives. Bonus: millions of dollars that can go right into transit improvements.

- Private parking excise taxes - Any private parking spot, unless you can prove that nobody parks there, puts a car into the neighborhood and all the negative externalities that entails. Throw an excise tax on these at a graded scale based on proximity to transit.
 
Market-rate overnight street parking. I have no idea why so few people bring this up. The point here is that if an off-street parking spot in Allston rents for $100/mo,then why is an Allston/Brighton parking permit $10 a year? Even pegged at 60% of the market rate off-street parking cost, I think $60/mo would change a lot of car-owners' behaviors in Allston, and cause developers to provide the right amount of private parking without skewed incentives. Bonus: millions of dollars that can go right into transit improvements.
Except people rightly distrust that the government is using these fees for what they're intended. I'd prefer to give everyone with street frontage a direct pro-rata share (per foot of frontage per unit) of each block's parking revenue (permits + meters). If a permit costs $60 per year, people should see whatever per-foot revenue is common (may have to average it across each permit neighborhood so that people don't fight over who has to "host" hydrants and bus stops).

The intent is that everyone whose behavior is unchanged isn't hurt (good politics) but everyone who stops driving gets to pocket their share of the parking revenue or spend it on transit.
 
RE: private parking excise tax. I disagree. I just bought a place with off-street parking so when people come visit they dont have to worry about parking on street or in a lot. This cost was built into my housing costs, pretty steep too. Why charge people again that paid already for their external parking costs.

RE: pro-rata parking revenue split. Seems like it could lead to a lot of perverse incentives. If a developer proposes a building on a street, no nimbys not only complain about traffic but now they face a direct income loss. If you had it go to a fund, make the areas parking revenue go to the relevant maintenance facilities for public transit. i.e. green line and bus yards. That way maintenance gets funded, better service, and more money for capital projects.
 
RE: pro-rata parking revenue split. Seems like it could lead to a lot of perverse incentives. If a developer proposes a building on a street, no nimbys not only complain about traffic but now they face a direct income loss.
I don't see how the locals lose income. I propose a per-unit-per-foot of frontage, not per unit or per-resident.

As long as the NIMBY's frontage stays the same, his/her share of the pooled revenues stays the same, and as prices and revenues rise, they benefit directly.

More residents = more demand, = higher prices and higher revenue.

Existing locals would have the choice of taking their higher revenues and recycling it into higher parking prices or to pocket the revenue from the higher demand that development would induce.
 

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