The idea that building more parking capacity will only increase the number of cars in a neighborhood, or conversely, that removing parking spaces can reduce the number of cars often gets short shrift at neighborhood zoning meetings, but the evidence here suggests this is basically how things work.

When parking lots go away, parking conditions tighten, driving becomes more unpleasant, and some people respond to this by ditching their cars. Rather than enduring permanent traffic jam conditions, neighborhoods simply level down to a new equilibrium with fewer parking spaces, fewer cars, and higher “alternative” mode share as parking gets tighter.

So if there is less parking demand in the Center City neighborhoods, why isn’t there any relief at the curb?

The issue is that curb parking is underpriced, the Planning Commission says, creating perverse consequences for individual transportation choices as well as the business incentives facing private parking operators.

Because City Council and the PPA set the prices for curb meters and residential permits so much lower than the rates for off-street parking, drivers have a strong incentive to seek out free or cheap curb parking first, before ultimately relenting and parking in a garage when things get desperate. The George Costanza parking strategy is a great example of a “smart for one, dumb for all” practice that makes sense in terms of individual incentives, but in the aggregate just adds up to a lot of unnecessary traffic congestion.

The Nutter administration has long been aware of this issue, and as early as 2009 they were saying publicly it was their goal to set curb prices at a level that would nudge drivers into a garage after an hour or two. The current meter rates still do not accomplish this, and they haven’t gotten buy-in from the PPA on their preferred strategy of dynamic pricing, even on a conceptual level.

If on-street parking were more expensive, you might see more garages setting their prices to compete for short-term customers, leaving more short-term spaces open on the street. But the authors say none of the garage operators they spoke with even think about competing with curb meter prices.

“Of all the parking operators that were interviewed, none take the cost for on-street parking into account when setting their own prices. Because on-street parking is relatively underpriced it is almost always at full capacity, especially in the densest areas of Center City and, as such, drivers are often forced to park in a garage or lot to avoid lengthy or fruitless searches for on-street parking. Therefore, garage operators need only compete with one another and not with the price of metered parking.”

As such, private garages are left appealing primarily to commuters, and their pricing reflects this. Most garage pricing strongly favors all-day commuter parking over short stays. PCPC says this creates an additional incentive for commuters to drive into the central business district during peak hours, rather than take transit.