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The High Cost of Free Parking Chapters 16 – 18

This post follows on the earlier discussion of Donald Shoup’s The High Cost of Free Parking. Chapter 16 — Turning Small Change in Big Changes Here Donald Shoup gets to the idea of using Business Improvement Districts to manage street parking as Brandon Smith mentioned in the last post’s comments. When parking revenue goes to municipalities’ general funds, drivers see it as a fee with questionable benefit. Contrarily, when parking revenue stays in the neighborhood, it can provide tangible benefits in the form of neighborhood improvements. This may make drivers more willing to pay for parking. More importantly, it creates an interest group in favor of charging a rate for parking that provides an funding source for neighborhood improvements. Seen from this angle, paid street parking benefits businesses from multiple angles. He uses to Los Angeles neighborhoods to demonstrate the potential benefits of parking revenues. In the 1980’s, Old Pasadena was suffering from a vacant building problem because historic buildings did not include onsite parking. As a result, they could not be repurposed. In 1993 the city introduced parkign emters and gave the revenues to the neighborhood to finance public improvements. Additionally, building owners were given the right to pay a fee for parking in a public garage rather than providing parking onsite, allowing existing buildings to be repurposed. These policy changes have created an environment where drivers can easily find parking and a streetscape that is more inviting for pedestrians. Shoup contrasts Pasadena with Westwood Village which has been in decline since the 1980s. In 1994 a parking study revealed that curb parking was 96 percent occupied, meaning the neighborhood had a significant cruising problem. As a response to the neighborhood’s decline, though, the city decreased hourly parking rates from $1 to 50 cents, worsening the parking shortage. This revenue goes to […]

The High Cost of Free Parking Chapters 10-14

This post follows on the earlier discussion of the The High Cost of Free Parking. I realized that I left a couple of important points out of the last post. First, Shoup applies the Hippocratic Oath of “first, do no harm,” to parking requirements. What a great way to think about city planning. If this standard was applied to all policies, we’d be living in libertarian utopia already. Secondly, he gives great treatment to the issue of why politicians sometimes choose regulations over taxation. Regulation imposes costs on everyone, but because these costs are hard to see, their costs are not easily traced to government. It is a less transparent way of manipulating behavior. Chapter 10 – Reduce Demand Rather Than Increase Supply This chapter explores some of the policy alternatives available to cities that could reduce the number of parking spaces needed to satisfy demand. Shoup supports programs that allow employers to provide their employees with unlimited transit passes. In cities where transit operates below capacity, transit agencies may be willing to sell this type of pass to employers at a low cost, knowing that many pass employees won’t use their passes regularly. As of 2002, Dallas, Denver, Salt Lake, and San Jose had adopted this type of program. In two studies, providing these eco passes reduced employees’ demand for parking by 19%, offering employers an opportunity for significant cost savings if they can provide 19% fewer parking spaces as a result. Shoup points out that in some cases this policy can be a win for everyone involved because employees receive an additional benefit, employers can save money, traffic is reduced for the cities’ other commuters, and transit agencies earn some additional revenue at near zero marginal cost, assuming they are operating below capacity. Unfortunately, Shoup finds that in some California cities that […]

The High Cost of Free Parking Chapters 5-9

This post follows on the earlier discussion of the first four chapters of The High Cost of Free Parking. Chapter 5- A Great Planning Disaster Shoup sets up parking requirements as a great planning disaster. If an individual developer chose to dedicate more of his land to parking than his customers demanded, he would lose money on the margin. If he is a major property owner and somehow made this mistake repeatedly at many properties, we might consider it a disaster. But a planning disaster occurs when no individual loses a lot of money in this type of error, but rather we all lose some. Shoup explains that parking requirements breed demand for more parking. By subsidizing driving, these rules lead more people to become drivers and encourages sprawling development. This in turn creates an increased demand for free parking and leads to higher parking requirements, since many cities base these requirements on the peak number of people who would like to park at a building for free, leading to the parking disaster we have today. Shoup explains that oftentimes parking requirements are so onerous that they dictate development both in use and in architecture. For example, Los Angeles’ “dingbat” apartments which are apartments built on stilts over driveways were created to fulfill requirements for covered parking. This chapter includes the empirical evidence that I find most persuasive so far, a study of changes in development after Oakland implemented a parking requirement in 1961. For new developments in the two years after the regulation went into effect, residential construction costs increased 18% per unit, housing density decreased by 30%, housing investment decreased by 18%, and land values fell by 33% compared to the four years before the requirement. This is strong evidence that in Oakland, at least, parking requirements, rather than demand […]

The High Cost of Free Parking Chapters 1-4

Here’s the first installation of Market Urbanism Book Club, covering the first four chapters of Donald Shoup’s The High Cost of Free Parking. If you’ve read the book previously or are reading along, please share your thoughts and questions in the comments. Chapter 1: Shoup outlines the unusual view that we take toward parking. Rather than assuming that demand for parking, like any other good, is a function of its price, urban planners typically assume that parking is a zero-price good and require building owners to provide enough parking to meet demand given a zero price. Imagine that this was the way we treated other goods… This Friday afternoon I’m thinking of a municipality that requires bars to provide their customers with as much beer as they’d like at a zero monetary cost. Shoup points out that of course we pay for the cost of all this parking, only drivers do not pay this price in their role as drivers. We pay for it as a tax on housing, retail goods, and in the form of lower wages as workers. Those who pay the highest tax are of course non-drivers. Some drivers are subsidized under this system with the highest subsidy going to drivers who make frequent, short car trips. He explains that off-street parking requirements developed as the demand for zero-price curb parking outpaced supply. This is a classic case of the Tragedy of the Commons. Because no one had property rights of street parking, it was overused. Rather than charging for this scarce resource, or allowing building owners to provide their customers with parking at profit-maximizing prices, city governments turned to regulations. Chapter 2: In this chapter, Shoup really gets to the core of the problems that government employees face when they try to provide consumer goods. Some […]

Market Urbanism Book Club

I’m very excited that some of you expressed interest in doing a book club this summer. I think we should start with The High Cost of Free Parking. It’s the longer of the two books, but it looks like the relative beach read. I am thinking that what makes the most sense is for me to post some brief thoughts on sections of the book here on the blog that we can discuss in the comments. Other options for the book club would be doing a Google Group which is basically an email chain, or we could do a Google Hangout or Skype discussion live. Please let me know if you have strong preferences for one of these methods. Otherwise, I’ll plan to do a first post on the first four chapters of the book late next week.

DC Approved 4,000 New Housing Units This Year, But Is It Enough?

Twitter tells me that earlier tonight, “not-ruling-it-out” possible future mayoral contender (and local smart growth demigod) Tommy Wells held his inaugural book club meeting; the book discussed was Ed Glaeser’s Triumph of the City. DC’s chief planner Harriet Tregoning was also there, and while she’s been relatively good to the cause of density in DC, the kinds of people who would show up to a Tommy Wells Triumph of the City book club probably want a bit more out of her, so I presume (again, I wasn’t there) that she ended up being one of the least radical people there. One person tweeted regarding the book club: “Building permit data says DC on track for 4,000 new housing units this year,” which I presume was a statement made by someone defending DC’s supply expansion efforts….

e. e. cummings the urbanist

A post of Stephen’s from a year ago got a few hits today. I reread it and recalled a poem I studied in high school by e. e. cummings: plato told him: he couldn't believe it(jesus told him;he wouldn't believe it)lao tsze certainly told him,and general (yes mam) sherman ; and even (believe it or not) you told him:i told him;we told him (he didn't believe it,no sir) it took a nipponized bit of the old sixth avenue el;in the top of his head: to tell him I actually have no idea what this poem is about, but I’m going to suggest that perhaps e. e. cummings did not support the destruction of New York’s private mass transit to meet government ends.

Book Review of The Heights: Anatomy of a Skyscraper

I’m reviewing The Heights: Anatomy of the Skyscraper by Kate Ascher as part of a TLC Book Tour. Other bloggers are also reviewing the book, and you can find links to their reviews here. I received a complimentary copy of the book, and I’d like to send it to a reader if anyone is interested in reading it. If you’d like it, just comment saying so by Monday, December 5th. If multiple readers would like it, I’ll pick one at random. _______________________________ The Heights reads like a textbook for Skyscrapers 101. It’s full of interesting skyscraper facts along with diagrams and timelines. I learned a lot from the book, having no background in architecture or engineering. For someone who has studied these subjects though, I imagine that this book would be too elementary. However for me, it offered a useful overview of the history and science of skyscrapers. Ascher details the process of planning, constructing, and owning skyscrapers, from the details of different types of foundations to building maintenance. She explains some of the challenges that skyscrapers present that I might not have thought about. For example, buildings with unusual designs that do not have straight sides must be designed with mechanisms for reaching the windows for cleaning and maintenance. She also explores skyscraper financing. I was surprised to learn that the bulk of the cost of owning a skyscraper comes not from construction, but rather from cleaning and maintenance over the life of the building: Although the annual cost of maintenance pales in comparison to the cost of constructing a building, over the life of a building — which can be upward of 100 years–it is much more significant. Holding aside capital replacement and reinvestment, the cost of the initial structure itself represents only about 5 to 10 percent of the total cost of owning […]

The Progressive Reaction Against NYC’s First Subway

nycsubway.org has an amazing trove of transit history, and I just got done reading “The Impact of the IRT on New York City” by Clifton Hood, on the effects of New York‘s first subway rapid transit line, first opened in 1904. There’s so much in it to recommend, but one of the interesting themes is the Progressive reaction to the real estate development that the line (he mostly deals with the IRT Broadway Line) sparked. Progressives were originally big supporters of the subway, on the grounds that it would encourage suburbanization and decentralization, putting people in their own homes, which they believed imbued better moral character than rented accommodations in tenements and large “apartment houses….

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