Humble "free" parking is largely responsible for the catastrophic failures of postwar North American cities.
By Ryan McGreal
Published April 14, 2005
Off-street parking requirements are a fertility drug for cars.
-- Donald Shoup, The High Cost of Free Parking
There is no righteous ire like the ire of people who believe they deserve something for nothing. In that light, don't expect many motorists to appreciate Donald Shoup's new book, The High Cost of Free Parking.
An UCLA professor in the Department of Urban Planning, Shoup dissects the economic, social, and environmental impacts of current parking regulations and proposes a new approach that can help free cities from the pernicious effects of auto dependency.
Originally limited to the curbside, parking was destined to become a scarce resource. Cars take up a lot of space, the total area of curbside parking is limited, and certain areas, like workplaces and commercial districts, experience peaks in demand when large numbers of people arrive at once.
Planners concluded that the solution was physical: create enough additional parking to offset the projected increase in demand. What seemed like good public policy at the time has been a slow-motion time bomb for cities. Too much parking is much worse, in the long run, than not enough parking.
When planners calculate how many parking spaces to provide1, they assume parking is free. Obviously, demand for a "free" service will be much higher than demand for a service that must be purchased. If people don't have to pay for parking, they are much more likely to drive.
There's just one problem: parking isn't free. In fact, according to Shoup, "the cost of all parking spaces in the U.S. exceeds the value of all cars and may even exceed the value of all roads." Parking costs billions of dollars a year.
Shoup is an economist, and it shows in the perspective he brings to bear. "[E]conomists do not define the demand for food as the peak quantity of food consumed at free buffets." Nevertheless, planners define the demand for parking as the peak quantity of spaces used when parking is free.
Developers simply pass the cost of "free" parking to property owners, who pass it to tenants, who pass it to all customers in the form of higher prices. "Off-street parking requirements encourage everyone to drive wherever they go because they know they can usually park free when they get there."
Huge expanses of asphalt push buildings far back from the street and away from each other. "Free" parking increases demand for driving lanes, which further separates destinations, making it difficult to get anywhere without a car. This further increases demand for more lanes and more parking in an insidious positive feedback loop.
Markets normally use price signals as negative feedback to contain demand. When demand goes up, the price goes up, and the higher price lowers demand. However, for price signals to work, the people using a good or service must be the ones paying for it.

Professor Donald Shoup kindly helps to subsidize your driving expenses
By breaking the relationship between use and payment, "free" parking eliminates the negative feedback that keeps the system in balance. As a result, everyone decides to drive everywhere, and the car crowds out other forms of transportation.
Even paid parking is often underpriced. In Hamilton, for example, motorists can park for 50 cents an hour at most curbside meters. Assuming about 60 square feet for a parking spot, that's six dollars per square foot per month - an order of magnitude lower than the equivalent monthly cost for a square foot of building space.
The tantalizing promise of underpriced parking leads motorists to cruise around the block until a spot opens up. In studies Shoup cites that analyzed traffic congestion, 30 percent of cars on the road were trying to find a parking spot.
Of all the transport systems available, including public transit, shipping, and rail, cars are unique in that terminal costs (doing something with your vehicle when the trip is finished) are offset to the rest of the economy. This "provide[s] a huge subsidy to motorists, and thus increase[s] the demand for cars, parking spaces, and vehicle travel."
Only walking, which has effectively no terminal costs, is comparable. All things being equal, most people would rather drive than walk. The problem is that all things aren't really equal; parking requirements just make it seem that way.
Worse still, "free" parking provides the biggest per-mile subsidy to the shortest trips, meaning drivers have a major incentive to drive to destinations they would otherwise be able to reach with ease by foot or bicycle. A huge proportion of traffic congestion is made up these short trips.
Shoup concludes cities should eliminate zoning requirements for off-street parking, end free municipal parking, and charge whatever price will maintain about 15 percent vacancy - the optimal rate to ensure easy entry and exit. To balance variable demand against a fixed supply, he recommends setting different prices according to time of day and day of week.
Anticipating the righteous ire of those drivers accustomed to free parking, Shoup notes that the biggest barrier to eliminating this subsidy is political, not technical, and proper implementation is critical.
The best way to implement market priced parking is for cities to remit all of the revenues from parking to what he calls "parking benefit districts", akin to business improvement areas. This way, decisions on how to collect and how to spend are made by the citizens most affected.

Bicycle parked against a parking meter
The benefits are potentially tremendous: with less parking, there is more room for both people and businesses, and the right balance between supply and demand means less congestion from cruising, less noise, and less air pollution. Reduced parking requirements also ease entry for investors who might otherwise build elsewhere. As the area becomes more appealing to pedestrians, it attracts both visitors and investors.
For Hamilton in particular, this kind of arrangement can provide the momentum and investment to restore and revitalize our beautiful downtown neighbourhoods that preceded cars and are already designed with pedestrians in mind.
Donald Shoup, The High Cost of Free Parking, American Planning Association, 2005, ISBN: 1884829988
By Macz (anonymous)
Posted July 18, 2006 14:36:53
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By bj (anonymous)
Posted July 18, 2006 15:08:30
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By aHack (anonymous)
Posted July 18, 2006 16:45:59
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By John (anonymous)
Posted July 18, 2006 16:48:56
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By cameldrv (anonymous)
Posted July 19, 2006 00:27:32
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By Josiah (anonymous)
Posted July 19, 2006 00:37:25
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By ardil (anonymous)
Posted July 19, 2006 06:04:39
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By Urban Dave (anonymous)
Posted July 19, 2006 08:43:20
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By Cassie (anonymous)
Posted July 23, 2006 22:40:38
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By SkyForum (anonymous)
Posted December 02, 2006 19:21:16
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By John (anonymous)
Posted May 29, 2007 15:23:43
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By nobrainer (registered)
Posted May 29, 2007 16:54:23
Nice troll John.
I can afford a car but I choose not to own one because, let's see, (1) they consume non-renewable oil (2) they produce more than half the air pollution in our city (3) they produce greenhouse gases that are causing climate change (4) they are pushing our cities apart so that as you say the places you go get pushed apart to make room for all the damn cars.
It's a chicken and egg problem. When most people have a car we need to rebuild our cities so cars can fit, and the way we rebuild our cities means you need a car to get anywhere.
Sorry that your insecure ego is tied up in being able to afford a car and you can't see that connection. (See? it's easy to be an "armchair psychologist" John)
Maybe if you got out of your car and tried living in a real community--yes, they used to exist, they exist today, and there will be a lot more of them in the future--you'd see that lifes not about wrapping yourself in a big fat dildo with wheels but about placing yourself somewhere you can feel connected and meaningful and more fully human.
Nah never mind. Just turn on the 60'' TV you can afford because you're not a hippy living in mom's basement and drown it all out.
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By Rusty (registered)
Posted May 29, 2007 16:57:12
Hi John,
I drive everywhere. I also own my own car and have a job too. And I sometimes, 'harp on about motorists' for RTH too. Amazing eh?!
Sorry to disappoint you mate.
Also, to the best of my knowledge, none of the RTH writers live in their Mums basements or dress like hippies(except Jason).
I was going to answer some of your points but I've just realized I can't be bothered.
Happy driving!
Ben
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By highwater (registered)
Posted May 29, 2007 17:23:03
You're good John! I don't comb my hair and I spend alot of time in the basement. Doing laundry for my kids mind you, but still.
Of course the rest of the time I'm a soccer mom who likes to "harp on about motorists" on RTH in between driving my minivan and walking to the store.
Anyone have a nice recipe for pie?
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"Anyone have a nice recipe for pie?"
Wait until the peak of peach season this summer and pick up a bushel of ripe, local peaches. Wash and peel them, and cut them into smallish pieces (highly precise, my recipes).
For each four cups of peaches, mix in the following:
Stir it together - not too vigorously or you'll break up the peaches - scoop into a good freezer bag, and stick in your freezer. (The more full your freezer is, the less energy it takes to keep your food cold.)
We usually do a half a dozen batches of pie mix and then slowly use them over the winter. By about March, pies made from this mix taste just like cream-sicles, especially when served hot with ice cream.
To make the crust:
2 C flour 1/2 tsp salt 1 C unsalted butter, softened * 2 T ice-cold water 1 large egg 1 T white vinegar
In a large mixing bowl, combine the flour and salt, and cut in the butter with two knives or one of those pastry butter cutter-inners.
In another small bowl, mix together the ice water, vinegar and egg. Then pour them into the flour/butter mix.
Stir just enough to combine them, but not too much, or else the dough will get stringy.
Take about half and roll onto a counter with liberal amounts of flour. Carefully slip this into your pie pan and cut off the overhanging pastry (but don't throw it out).
Then pour in your peach pie mix.
Finally, take the other half of the pastry, roll it out, and place it on top of the pie. Cut off the extra pastry again, and crimp the top and bottom together.
Poke a few holes into the top of the crust, and then bake, uncovered, in an oven at 375 degrees for about 45 minutes or until golden brown.
While the pie is baking, mix together the rest of your pastry and roll it out. Spread on some softened butter, then a thin coating of brown sugar, and finally a very thin coating of ground cinnamon.
Yes, you're making cinnamon rolls with the leftover pastry.
Roll the pastry up into a tube and cut it into sections. Bake them in a separate pan (one with raised sides - these puppies run) for about 20-25 minutes or until golden brown.
At this point, you're welcome to eat them as-is or drizzle them with an icing of your choice.
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By markbarbera (anonymous)
Posted May 30, 2007 09:33:49
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By jason (registered)
Posted May 30, 2007 17:09:43
Just got home from riding my bike to work... we own a car but it sat in the drive today. as it does 2 or 3 days a week when I ride my bike or take the bus to work. We too have saved money, but not nearly as much as we could without a car. last time I checked it costs me around $8,000 a year to own my car (we're still leasing). However, since moving downtown 6 years ago (when gas was around 50c a litre) our monthly allotment for gas has gone down...not up. And we drive less km resulting in less wear and tear and (we hope) a longer life for our car once we buy it out after the lease ends. On top of all that, we are in the best physical shape of our lives with all the walking and biking we do....the Market, Locke South, James North, Hess Village, Jackson Square etc...is all within a 10-15 minute walk. We too lived in the suburbs previously and will simply never go back. Living downtown has been amazing.
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By highwater (registered)
Posted May 30, 2007 22:05:20
ooo. Thanks, Ryan. Clipped and saved for peach season.
You can always do half and half butter and shortening for your crust. I actually prefer cheaper no name shortenings. They seem to make a flakier crust. Higher water content, I think. Just don't forget to chill it first.
Now here's one for you courtesy of Hmag. Impress your friends by cooking with weeds while at the same time helping reduce the noxious garlic mustard that's killing our maple forests and turning our woodland edges into monocultures:
Garlic Mustard Pesto
3-4 cups small garlic mustard leaves (picked early spring) 1/3 c roasted seeds/nuts (I used pine nuts, walnuts would be nice too) 1/3 c olive oil 10 cloves garlic 1/4 c grated parmesan
Process all ingredients in food processor to desired consistency.
This is VERY garlicy. I had some tossed with pasta before choir practise. BIG mistake. They're still not speaking to me. Next time I'll toss in some parsley as well. Also nice on bruschetta mixed with mayo and a little lemon juice, but only to be shared with very close friends.
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By PRKGLDY (anonymous)
Posted April 20, 2008 10:52:56
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By doubting thomas (anonymous)
Posted October 30, 2008 02:34:14
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Thomas wrote:
He also fails to note that land saved from parking would not be green; It would be used for more construction further turning cities into canyons.
More density is a good thing. Cities can be both built-up and green, as evidenced by most great cities.
More density means destinations are closer together and it becomes practical to walk, cycle and take transit.
Shoup also fails to realize that consumers will eschew downtowns for strip malls and that parking is the cost for doing business for both businesses and cities.
Really? Someone needs to communicate this to the city of New York, which has one of the highest median incomes in the United States but only a 30% rate of car ownership.
Housing values will go down as people flee the city so businesses will have less sales and the city will lose tax revenue.
The evidence runs directly counter to your claim. Cities with the most "free" parking have the most economically depressed downtowns. Within Toronto, for example, the most popular urban neighbourhoods are those with the least parking. Some areas, like King-Spadina, have no parking requirements whatsoever and are absolutely booming with new development.
Historically, people have had free parking.
Historically, cities that have been the most dedicated to "free" parking have had the most disinvested, economically depressed downtown cores, and cities that have mostly ignored parking have had the richest, most developed, most valuable downtown cores.
It is as American as Apple Pie
Empty rhetoric. "Free" parking is income redistribution, using taxpayer revenues to spread the wealth around by subsidizing the cost of operating a vehicle. (Quick, someone alert the McCain campaign.)
There's nothing intrinsically "American" about it except insofar as it is "American" for the government to collect tax money form everyone and use it to subsidize the affluent.
and the Right to Bear Arms, which Im sure Shoup would go after next
Because nothing says 'left-wing moonbat' like advocating deregulation and free market forces in civic governance...?
In summary: your argument rests entirely on assumptions about human behaviour that are contradicted by the evidence, which is abundant and robust.
Seriously, I urge you to read the book (if you don't want to shell out for it, borrow it from the library) and evaluate it directly.
I think you will be surprised at how well-researched, well-argued and compelling an argument he makes.
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By Public transit software (anonymous)
Posted February 23, 2010 00:08:05
Comment edited by administrator Ryan on 2010-02-23 07:12:28
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By tom (registered)
Posted July 18, 2006 13:22:34
A very illuminating analysis! Likely to be correct on many points indeed. Given that he's probably a socialist to some degree, I'm left to wonder if Dr. Shoup would have the stomach (and the intellectual honesty) to apply his flawless logic to healthcare economics. Agenda driven research, no matter how good, is usually a bad idea.
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