Optimizing the use of public garages: Pricing parking by demand

Many cities build public garages at great cost but with scant public scrutiny or economic analysis. Other than aiming to recover the cost of debt service and operations, cities appear to have few clear policy aims in managing these garages. In this paper, we outline how U.S. cities currently manage off-street parking structures under their control. We argue that this management largely ignores the logic of both economics and public benefits. We also make the conceptual case for how cities should manage their parking assets to maximize public benefits. Finally, we examine the most promising example of off-street parking public management, using data from 14 garages included in San Francisco's SFpark program. We find that SFpark increased the public use of garages by more than a third, reduced the average price for drivers, and maintained a stable revenue stream for the city.