Literature Review

In The High Cost of Free Parking, Dr. Daniel Shoup explains how free parking is engraved in people’s expectations (Shoup, 2005). As vehicle usage rapidly increased in the 1920s and 1930s, regulations were quickly enforced, requiring businesses to provide sufficient parking for their clientele. These early regulations were adopted nearly a century ago aiming to alleviate congestion caused by moving vehicles searching for parking spaces. Moving forward to current years, such regulations established an expectation of access to free, or nearly free parking. This expectation has caused several problems, particularly in high traffic urban areas. Hopeful of finding an affordable and convenient parking location, individuals continue to drive around an area, wasting time, fuel, raising safety concerns, and increasing traffic. Additionally, because local governments have chosen to provide relatively affordable pricing, once a parking location is found, drivers do not have a financial incentive to vacate the location in an expedient manner that improves turnover. Throughout the years, this issue has become undeniably prevalent, primarily in highly populated cities with limited parking availability.

The City of San Diego is the eighth largest city in the United States (“Population | Economic Development | City of San Diego Official Website,” n.d.), and is comprised of more than 50 neighborhoods. The current population is over 1.4 million people and has a steep increase forecasted. The San Diego Association of Governments (SANDAG) estimates the population to reach 1.54 million by 2020, 1.69 million by 2030, 1.82 million by 2040, and nearly 2 million by 2050 (nearly doubling the current population) (“Population | Economic Development | City of San Diego Official Website,” n.d.). San Diego is home to several beaches, sports teams, universities, and is geographically rich; the city is also known for their weather and proximity to neighboring Mexico. Among other reasons, San Diego is best known as “America’s Finest City”, and has become a popular destination for tourists and new residents. More than 35 million tourists visit San Diego annually (“Industry Research,” n.d.).

San Diego faces a constrained parking situation due to limited public transit and a car-to-parking-location ratio; this is additionally challenged by the thriving tourist economy resulting from the moderate San Diego climate. According to Data USA, the average San Diego household owns two cars and uses them regularly as their primary mode of transportation (“San Diego, CA,” n.d.). According to Shoup (2011), over 80% of trips in the United States are made by car, while less than two percent leverage public transportation.

Downtown San Diego, which is a very active and popular destination among both residents and tourists, encompasses roughly 1,450 acres (2.3 square miles) next to the San Diego Bay and San Diego International Airport (Downtown San Diego, 2016). It is the heart of the city and boasts numerous attractions, including bars, restaurants, shops, financial institutions, and major corporations. Roughly 35,000 residents live in Downtown and are joined by nearly 80,000 employees. About 137,000 jobs are generated from businesses based in downtown San Diego (Downtown San Diego, 2016).

To accommodate visitors, residents, and commuters, San Diego manages approximately 5,000 metered parking spaces. Over 80% of the city’s parking meters are located in the downtown area (City of San Diego, 2018). Meter occupancy rate is a measure of the percentage of operating time during which an individual has paid to utilize the space. It is calculated as the quotient of total time purchased and meter enforcement time. Downtown meters have an average occupancy rate of TBD, based on open source data collected from the city of San Diego. Meter pricing varies from $0.50 to $1.25 per hour, depending on geographic zone. Parking meter spaces are significantly more affordable than other parking alternatives in the area, naturally making it the preferred method of parking for most drivers. Alternative parking options through third-party vendors available in the downtown area, are generally priced higher. Privately owned parking structures offer monthly parking permits discounted from daily rates, with prices ranging from $120.00 to $450.00 (Nghe & Vazquez, 2019).

Coupled with citations and permits, parking meters account for 2% of the total annual budget for San Diego. In 2018, San Diego parking meters generated gross revenues of $11,399,259.38. Downtown meters accounted for 69% of the figure, agenerating $7,905,096.92, while meters outside Downtown generating the remaining 31% ($3,494,162.38).

Downton parking meters have significantly increased demand relative to other meters in San Diego. As population increased over the years, occupancy rates followed. Since 2000, the population has increased 97% in the area (Citation), limiting the amount parking available. This limited supply of parking spaces has caused safety, environmental, and most notably congestion issues in downtown San Diego. According to Shoup (2011), as drivers are unable to find parking, they double-park their vehicle or continue to drive around in hopes of finding a parking location. These actions disrupt the normal flow of traffic and result in safety concerns to pedestrians and other drivers. Additionally, the unnecessary vehicle operation time increases vehicular pollutants and fuel usage, both of which are known contributors to pollution and climate change (<<citation>>).

To mitigate these challenges, parking availability must increase in Downtown. Parking inventory cannot be readily increased, however, due to significant space limitations throughout Downtown. To mitigate risk of traffic congestion and associated safety concerns, a different solution must be identified to adjust parking capacity and demand.

Currently in San Diego, the average commute is approximately 22 minutes (“San Diego, CA,” n.d.). Compared to the nationwide average of 26 minutes commute (“As economy booms, San Diego’s traffic congestion worsens - Los Angeles Times,” n.d.), San Diego’s commute is not relatively high. When controlling for just those individuals who commute into Downtown, time spent locating parking may significantly impact that time. Historical population trends in downtown San Diego can only suggest parking availability to worsen. As population trends are indicating increases, there is no better time to address the issue than now. In addition, a survey by the American Planning Association concluded that more than half of millennials within the United States intend migration from rural to urban areas, and San Diego is ranked the third most popular choice of locales (“Who the Heck Lives Downtown?,” n.d.). Additionally, the surveys indicated that young millennials are choosing to live in urban areas with walkable distances hence, downtown areas. The LA Times reinforced the predicted increase in population. In an article released in November 2017, J. Smith explained how the amount of driving on the freeway has far surpassed the number of drivers on the freeway during the 2008-2011 economic recession (“As economy booms, San Diego’s traffic congestion worsens - Los Angeles Times,” n.d.). Along with the recession came job losses that, in conjunction with other factors, made a significant influence in the lessening in driving in San Diego. As these young and educated millennials begin to migrate to Downtown, congestion issues will continue to grow and perhaps worsen.

It is evident that the City of San Diego has recognized the urgency of the matter. In efforts to enact change, the city has launched several incentives such as FRED.

Using 2018 transaction parking meter data, this project develops a dynamic meter pricing model for San Diego to increase transient vehicle parking turnover decreasing occupancy rates to effectively increase Downton parking availability .