The Continuing Story of the High Costs of Free Parking

A new study has found that despite higher monetary incentives, most commuters won't ditch their cars as long as their parking remains free.

1 minute read

February 22, 2016, 10:00 AM PST

By jwilliams @jwillia22


This year, following Congressional approval, individuals who take transit to work will now receive the same monetary benefit ($255 per month) as those who drive alone and park at their place of employment. Despite this change, a new study casts doubt on any impending shift in how people commute. Eric Jaffe of CityLab reports that the study conducted by TransitCenter found that people are only likely to shift commute modes when the monetary benefit is there and the free parking is taking away.

The TransitCenter study reflects research conducted by Andrea Hamre at Virginia Tech. Hamre research again found that free parking was enough incentive to make people commute alone to work.

When no subsidies are offered, 62.3 percent of people drive to work, as per the model. But when both parking and transit subsidies are offered, slightly more people take their car—63.8 percent. Slightly more people take transit, too, but fewer people carpool or walk or ride their bike, so on net traffic would be worse.

Removing free parking ultimately shifts more cars off the road, reducing congestion and as the Transit Center notes, freeing up "billions of dollars a year in tax revenue that could be used for other public services."

Tuesday, February 16, 2016 in CityLab

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.

June 11, 2025 - Diana Ionescu

Metrorail train pulling into newly opened subterranean station in Washington, D.C. with crowd on platform taking photos.

Congressman Proposes Bill to Rename DC Metro “Trump Train”

The Make Autorail Great Again Act would withhold federal funding to the system until the Washington Metropolitan Area Transit Authority (WMATA), rebrands as the Washington Metropolitan Authority for Greater Access (WMAGA).

June 2, 2025 - The Hill

Large crowd on street in San Francisco, California during Oktoberfest festival.

The Simple Legislative Tool Transforming Vacant Downtowns

In California, Michigan and Georgia, an easy win is bringing dollars — and delight — back to city centers.

June 2, 2025 - Robbie Silver

Color-coded map of labor & delivery departments and losses in United States.

The States Losing Rural Delivery Rooms at an Alarming Pace

In some states, as few as 9% of rural hospitals still deliver babies. As a result, rising pre-term births, no adequate pre-term care and "harrowing" close calls are a growing reality.

June 15 - Maine Morning Star

Street scene in Kathmandu, Nepal with yellow minibuses and other traffic.

The Small South Asian Republic Going all in on EVs

Thanks to one simple policy change less than five years ago, 65% of new cars in this Himalayan country are now electric.

June 15 - Fast Company

Bike lane in Washington D.C. protected by low concrete barriers.

DC Backpedals on Bike Lane Protection, Swaps Barriers for Paint

Citing aesthetic concerns, the city is removing the concrete barriers and flexposts that once separated Arizona Avenue cyclists from motor vehicles.

June 15 - The Washington Post