TDM Toolbox

Subsector: Parking or Road Pricing/Management
Demand Based Parking Pricing
VMT Reduction Potential: 5
Cost: 2
ROI: 5
CVAG Relevancy: 1
Land Use Content: Urban, Suburban
Trip Type: School, Residential, Commute, Recreation
Scale: Community, Site
Timing: Short Term (1-3 years)
Implementors-Private: Employers
Implementors-Public: Municipalities
References: California Air Pollution Control Officers Association (2024)

Description

Implementing market price public parking uses demand-based pricing strategies to adjust on-street parking rates according to occupancy, deterring long-term parking and encouraging turnover.

Implementation Details

  • Pilot demand-based pricing strategies for metered parking in commercial corridors.
  • Use smart meters to analyze occupancy rates and adjust prices based on demand to reduce circling and congestion.
  • Reinvest revenue from pricing into street enhancements, wayfinding, and pedestrian improvements in the same neighborhoods.
  • Partner with SunLine to test weekend or event-based pricing that incentivizes park-once behavior and increases transit use.

Mitigation Potential

Implementing market price public parking increases the cost of driving to a location. Pricing parking disincentivizes the use of Single Occupancy Vehicle and encourages alternative forms of transportation, reducing VMT.

For more details, see CAPCOA, T-24. Implement Market Price Public Parking, pg. 179-182 for VMT reduction quantification.

Linked Strategies

Equity Considerations

To avoid placing cost burdens on low-income drivers, pricing strategies should include exemptions or discounts for residents in disadvantaged communities. Revenues from market-priced parking should be reinvested in local multimodal improvements, such as sidewalks, bike infrastructure, and first-last mile transit access. Transparent community engagement is critical to ensure buy-in and equitable outcomes.

Funding Sources

Likely requires initial funding to monitor parking facilities, plus continued funding for staffing parking enforcement. Planning for alternative parking strategies can be funded through RCTC’s Measure A program, Caltrans Sustainable Transportation Planning Grants, and CMAQ. Proximity to transit and active transportation networks may impact eligibility to a broader range of funding programs.

Examples/Case Studies

SFpark – San Francisco

SFpark’s demand-based pricing system adjusts meter rates in real time to maintain optimal parking availability, with revenue reinvested into local mobility improvements

Pasadena Performance-Based Parking

Pasadena adopted zone-based market pricing in Old Pasadena, reinvesting funds into sidewalk repairs, lighting, and pedestrian safety upgrades in the same district