The High Cost of Free Parking by Donald Shoup
The High Cost of Free Parking by Donald Shoup

Economics · 2005

What is The High Cost of Free Parking about?

by Donald Shoup · 15h 30m

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The short answer

The High Cost of Free Parking is Donald Shoup's comprehensive argument that parking minimums—the rules requiring developers to provide a set number of parking spaces per building—are among the most damaging and least examined policies in American cities. Shoup, an urban planning professor at UCLA, spent decades studying parking economics before assembling this book, and his thesis is simple if counterintuitive: free parking isn't free.

The High Cost of Free Parking by Donald Shoup
The High Cost of Free Parking by Donald Shoup

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The High Cost of Free Parking, in detail

The High Cost of Free Parking is Donald Shoup's comprehensive argument that parking minimums—the rules requiring developers to provide a set number of parking spaces per building—are among the most damaging and least examined policies in American cities. Shoup, an urban planning professor at UCLA, spent decades studying parking economics before assembling this book, and his thesis is simple if counterintuitive: free parking isn't free. Someone always pays. The question is who, how inefficiently, and at what cost to cities.

The book makes its case on three interlocking fronts. First, minimum parking requirements are derived from engineering studies that predict demand for free parking, which is not the same as actual demand when parking has a market price. Cities use these faulty numbers to mandate more parking than the market would produce, turning vast amounts of land into asphalt. Second, the cost of that parking is bundled invisibly into housing, office rents, and consumer goods. People who don't own cars subsidize those who do. Third, cruising for underpriced curb parking generates significant traffic congestion—Shoup's studies found that cruising for parking in a single Los Angeles block produced traffic equivalent to 30,000 vehicle miles annually.

The solution Shoup proposes has three parts: eliminate off-street parking minimums, charge market-rate prices for curb parking (the price that keeps one or two spaces open on each block), and return the resulting revenue to the neighborhoods where it's collected. That last piece is politically clever: local merchants and residents who might oppose market-rate parking become allies if they see the money spent on neighborhood improvements rather than vanishing into a general fund.

This is a dense, footnote-heavy book of more than 700 pages, and Shoup makes no apology for the length. The academic rigor is a feature for readers interested in the evidence base, but it also means the book rewards selective reading. The core argument is made clearly in the first quarter; the rest builds evidence and applications. Few books have influenced a specific niche of public policy as thoroughly as this one, and its ideas have reshaped how planners in dozens of cities think about parking.

The big ideas

  1. 1.

    Minimum parking requirements are based on studies of demand for free parking, not market demand. They systematically overproduce parking at the expense of other land uses.

  2. 2.

    The real cost of parking is hidden in housing prices, office rents, and consumer goods. Someone always pays; it's just rarely the driver, at the time of parking.

  3. 3.

    Cruising for cheap or free curb parking generates enormous traffic congestion. One underpriced block can generate as much traffic as thousands of additional vehicle miles.

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