Ah, parking.
Everyone who’s driven a car has probably worried about where to park, how much it will cost, and whether you can keep your spot without getting slammed with an expensive ticket or, worse, towed.
While parking is typically a nonissue in the suburbs, in metropolitan areas- the inconvenience of parking is its own industry. And when a month of parking in a premium location can be more expensive than rent, driving becomes inaccessible for most commuters.
So, if you’re living or commuting in a city, you already know how dire the parking situation is. But, you may not know what metropolitan areas have the most inconvenient and expensive parking. So read on where you’ll pay the most for a space (and encounter other parking nightmares).
1. Manhattan
NYC is one of the most expensive cities in the world, so don’t expect the parking to come cheap.
“While the monthly median rate for unreserved parking in the country is $166.26, Manhattan parking lots will have you spending $550/month on average. Downtown hourly parking rates average around $20, while metered street parking goes up to $7.50,” According to Way.com.
Not only is NYC the city where you’ll spend the most on parking, but you’ll also spend the most time trying to find a spot. So, if you’re commuting into NYC, you really can’t win on any front- and better leave early. Oh, and consider the gas you’ll burn driving around in circles waiting for street parking to open up.
Map Source: Parking.com
Driving considerations are so expensive that it becomes prohibitive. The freedom of personal vehicles then becomes a luxury only awarded to higher income levels who can afford the ridiculous costs.
This is especially true now that the NYC government plans to slam drivers with a $23 toll to enter its central districts. This will exponentially multiply the cost of commuting. And when transit crime is up 58% from last year, public transit shouldn’t be the only option for your employees to get to work.
Businesses that position themselves in NYC, put their employees in between a rock and a hard place. Either give up your weekly wage to get to work or risk the subway—Dun dun dun!
2. San Francisco
San Francisco is consistently neck and neck with Manhattan for the country’s highest living costs. As such, you can bet that they’re number two on this list.
"The average cost of parking in San Francisco is $29/per day. On average, downtown parking lots and garages charge $20 – $40 daily."
The city also charges based on demand, so rates are adjusted by popularity.
This is why a parking spot a block from Oracle park (The Bay Area’s tech hub)was listed for $90,000. Before this, the convenience of this spot was priced at $300 a day. Bill Williams, the seller of the spot, explained, “If you’re going to spend $200,000 on some luxury vehicle, why not spend $90,000 on somewhere safe to keep it?”
A $90,000 parking spot? This speaks for itself. However, it's not just the parking fees you’ll have to worry about in San Francisco.
The city is notorious for inconvenient parking, hitting drivers with a two-hour time limit for 75% of San Fran spots. Oh, and be on the lookout for meter maids. The city collects $90 million in parking fines every year. Yikes!
3. Los Angeles
Los Angeles’ traffic problem is a sort of national joke. The congestion and gridlock are the worst in the country, with LA drivers spending an average of 102 hours battling traffic congestion during peak hours, according to USAToday.
With the city built around its roads, driving is unavoidable. As such, around 7.8 million vehicles are registered in LA every year. However, there’s an inordinate ratio of parking spots to the number of cars.
As a result, the city encounters a sort of supply and demand crisis. Since the demand is so high, the price of parking can easily be jacked up.
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“The median hourly LA parking rate at off-street facilities range is $20, while a monthly parking spot will cost you $235 on average.” |
However, parking is sure to become more complicated as the popularity of electronic vehicles (EVs) rises. In Los Angeles, the city is making moves to provide parking spots designated for EV charging. However, when the number of cars already supersedes the parking, the demand for traditional parking will skyrocket.
This is sure to become an issue in all Californian cities as the state’s Air Resources Board approved a ban on the sale of gasoline-powered vehicles in California by 2035. This will take a serious reorienting of how city planners and individuals think of driving and parking.
4. Washington D.C.
Our country’s capital is consistently a popular spot for travel as the city brings in an average of 25 million visitors each year.
However, its strategic location and robust business environment also have made it a desirable area for businesses. Recently many major organizations, including Raytheon and Boeing, have laid down roots in the greater D.C. area. What does this mean? All these people will need somewhere to park. And, of course, it’s not going to come cheap.
The city’s central business district, National Mall, Georgetown, Adams Morgan, Chinatown, Wisconsin Avenue, and Maine Avenue, have the highest demand (and prices) for parking. “Expect to spend $50 a night at hotel garages. The city also has some of the highest hourly rates at parking lots, while metered parking costs $2.30/hour on average.”
City parking is not only expensive, it's complicated.
Those parking on the street are warned against the wrath of strict rules and regulations. “Before you plan to risk street parking, know that a Washington DC parking ticket will cost you anywhere between $30 – $100.” Fines are also based on demand so in heavily trafficked areas, expect steeper fines.
5. Chicago
Chicago is the final city on our list. With hourly parking rates off streets reaching a median of $19, you’ll typically find full-day parking in similar facilities for $35.
However, the city also levies steep fines and fees for violations which can be easy to rack up when most metered spots come with a two-hour maximum time limit.
Not only this but,
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“Tens of thousands of Chicagoans are routinely issued erroneous parking tickets each year." |
According to the University of Chicago’s Institute for Research on Race and Public Policy.
This speaks to an issue far greater than limited or expensive parking. The city generated over $35 million in tickets written under false pretenses from 2012-2018. This unjust political crisis comes to a state that already significantly taxes its citizens.
Urban planning and policy expert Phil Ashton explains, “The city’s erroneous tickets are less accidents than they are features of a system configured to generate revenue for the city and for its financial partners over ensuring the rule of law.”
So, there you have it. If you visit Chicago with a car, be prepared to fight over a bogus ticket in traffic court.
The Migration Away from Cities
High parking fees, inconvenient driving, traffic gridlock, and strict regulations make cities a prospective nightmare for commuting. However, inconveniences on the parking/driving front are just another reason the quality of life in cities is generally lower.
As a result of the growing work/life flexibility in recent years, Americans are no longer willing to put up with the headaches of city life. Accordingly, there has been a significant migration to the suburbs (and businesses are following).
So, if you’re located in one of these cities, consider how parking expenses affect your business and employees. They may not be so excited to hand over their weekly wage for inconvenient parking when they can have the freedom to drive at a fraction of the cost of living in the suburbs.
In the midst of the talent war we’re in, creating comfortable corporate environments (employees are willing to travel to) is of the utmost importance to recruit and maintain great team members.
Suburbs are generally more affordable, have more real estate options, higher quality of life, and self-sufficient parking. Check out this article if you want to learn more about the pros and cons of locating your business in the suburbs.
If you're ready to take the next step to improve your commercial real estate by streamlining parking or relocating to the suburbs, you don't have to do it alone.
As Tenant Reps at iOptimize Realty®, we have seen how much our corporate clients could benefit from joining the suburban migration. We have 30+ years of firsthand experience identifying the most optimal properties (in the suburbs or elsewhere), features, and terms that will bring big savings. So, don't waste any more time. Hear from a Tenant Rep expert today about how to start a suburban relocation or streamline your leases today.
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