In the last few decades, there has been a trend towards migration from urban to suburban areas due to the availability of cheap land outside cities and easy transport. However, the last decade has seen a divergence in this trend as the younger generation seeks to reoccupy cities. The huge migration to urban areas means that passenger vehicles will increase in cities and the need for parking will intensify. Therefore, cities must develop and implement efficient parking systems to meet parking demands. They must use technologies such as IoT and AI integration and real estate technologies to develop smarter parking options.
It is estimated that by 2050, the US will have a population of approximately 460 million people. A big population will translate to huge numbers of passenger cars. In 2012, the number of registered cars was 300 million. As the US population grows, this number will grow drastically. An increase in passenger cars means a huge demand for parking. In the US, It is estimated that there are 800 million parking spaces. In urban areas, parking is adequate with every passenger car having around 8 parking spaces, and in some urban centers even 30 spaces.
There’s a correlation between parking and urban development making parking a unique challenge for urban developers. First, an open parking space has a value of $20,000 annually. Second, low parking prices boost per capita vehicle ownership and use. Third, parking availability decreases the use of other modes of transport such as cycling and public transit. Fourth, adequate parking increases the value of property ranging from residential to commercial and multifamily property. Fifth, adequate parking reduces affordable housing by increasing the cost of homes and moving development to areas that are far from amenities such as public transit.
Due to the relationship between parking and urban development, many cities across the US struggle with balancing parking demand and supply. As urban areas grow, parking must also increase to accommodate the growing number of passenger cars. Cities struggle with devising the appropriate amount of parking required to meet their needs. Too little parking could hinder growth in an urban area. Too much parking is wasted land that could be used for other economic purposes. Also, an open parking lot translates to a loss of approximately $20,000 per year in local revenue. Therefore, cities must tackle the challenge of parking and achieve a balance. Most cities are open to innovative and efficient parking systems that will balance the population ratio to parking spaces.
Approaching the issue of urban parking requires a lot of caution. When a city decides to construct more parking slots for its increasing population, it incurs upfront costs as well as maintenance costs. For example, constructing two-story underground parking can cost up to $6.9 million while the construction of a 5-story parking garage costs around $8.56 million. Also, constructing a parking structure in an urban area comes with an opportunity cost. A city could use such an area for other economic purposes to stimulate economic growth and generate tax revenue.
ParqEx is a great solution to the urban parking problem. Rather than investing millions of dollars in constructing new parking structures and denying the city valuable land for economic purposes, ParqEx makes use of existing parking spaces. It connects the owners of private parking spaces to individuals looking for parking. ParqEx adds parking supply for public use while offering communities a means to earn some revenue. Local residents and parking owners make use of their underutilized asset –parking- in exchange for some revenue. ParqEx is especially useful in urban areas with limited parking options or expensive parking options by making additional supply available. Cities don’t need additional parking space; they need to share what is already available.
Parking plays an essential role in urban development. Cities must solicit for ways to meet their parking needs while boosting urban development. They must adopt parking systems that are innovative and efficient as the need for improved urban parking intensifies. ParqEx offers an ideal solution to solve the urban parking challenge by using existing parking structures. Contact ParqEx today to schedule a free consultation or demo.
