Video: How Much Should Parking Cost?

Variable parking pricing can offer some of the same benefits as congestion pricing.

1 minute read

February 21, 2024, 10:00 AM PST

By Diana Ionescu @aworkoffiction


A new video from City Beautiful explains how on-street parking in many cities is woefully underpriced—and how variable pricing could have similar effects to congestion pricing in reducing congestion and pollution. Aysha Khan describes the video in Next City.

As Khan explains, “Despite competing uses for these spaces – outdoor dining, bioswales, bike lanes, loading zones, widened sidewalks and so on – local governments rarely raise their parking prices to market rates, or rates that acknowledge the nominal and real costs of parking.” Cities offer low-cost parking to attract customers to local businesses, but more strategic pricing could help mitigate traffic issues, boost economic development, and reduce emissions.

In the video, Dave Amos explains that variable pricing can help manage demand and ensure there are enough parking spaces while discouraging unnecessary trips and raising revenue. “Amos points to a pilot program in San Franciso for variable parking pricing, which installed sensors at every meter and adjusted parking prices over time to ensure a 60 to 80% occupancy rate. By raising prices at peak periods, they achieved their occupancy goals and cut cruising rates in half, offering a promising model for other cities to follow.”

Wednesday, February 14, 2024 in Next City

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 16, 2025 - Diana Ionescu

Green vintage Chicago streetcar from the 1940s parked at the Illinois Railroad Museum in 1988.

Chicago’s Ghost Rails

Just beneath the surface of the modern city lie the remnants of its expansive early 20th-century streetcar system.

July 13, 2025 - WTTV

Blue and silver Amtrak train with vibrant green and yellow foliage in background.

Amtrak Cutting Jobs, Funding to High-Speed Rail

The agency plans to cut 10 percent of its workforce and has confirmed it will not fund new high-speed rail projects.

July 14, 2025 - Smart Cities Dive

Worker in yellow safety vest and hard hat looks up at servers in data center.

Ohio Forces Data Centers to Prepay for Power

Utilities are calling on states to hold data center operators responsible for new energy demands to prevent leaving consumers on the hook for their bills.

July 18 - Inside Climate News

Former MARTA CEO Collie Greenwood standing in front of MARTA HQ with blurred MARTA sign visible in background.

MARTA CEO Steps Down Amid Citizenship Concerns

MARTA’s board announced Thursday that its chief, who is from Canada, is resigning due to questions about his immigration status.

July 18 - WABE

Rendering of proposed protected bikeway in Santa Clara, California.

Silicon Valley ‘Bike Superhighway’ Awarded $14M State Grant

A Caltrans grant brings the 10-mile Central Bikeway project connecting Santa Clara and East San Jose closer to fruition.

July 17 - San José Spotlight