How is parking managed around the world? We have published a review of parking policies

Parking management is frequently overlooked in transportation planning, yet it is one of the most effective tools a city has to improve traffic conditions, public health, and the quality of life of its residents.

The main issue with on-street parking is its high spatial demand, especially in densely built areas. A single parking space occupies on average 12.5 m², not including the necessary maneuvering areas. By law, the smallest residential room in the Czech Republic must be at least 8 m², and the smallest apartment 16 m². An average car is parked 95% of its existence, and the average occupancy of a car in Prague is 1.3 people. High pressure on limited urban space leads to problems that require systematic and equitable solutions.

A plentiful supply of low-cost parking encourages individual car use by lowering its overall cost. Such a system does not motivate users to actively choose more sustainable forms of transport, such as public transit or cycling. Very low street parking prices increase occupancy and, consequently, the pressure to create additional parking spaces. This creates a vicious cycle where adding more parking in public spaces (e.g., sidewalks, squares, or green areas) generates even higher demand for it.

The current trend is to gradually regulate street parking through pricing, thereby reducing pressure on parking spaces, freeing up public space within cities, and saving drivers the time they would otherwise spend searching for a parking spot in congested streets.

More you can find in our new Review of parking policies.

In San Francisco, USA, a dynamic pricing system for parking was introduced in 2013. Prices adjust throughout the day based on demand, aiming to maintain 60–80% occupancy in a given area. Evaluations showed roughly a 30% reduction in vehicle kilometers traveled, a corresponding decrease in emissions, and a 43% reduction in the time spent searching for parking.

Redistributing public space is a conscious choice

Many cities in Europe and the USA are removing on-street parking to make room for more active transport, greenery, and quality public spaces. Streets transform from inaccessible parking lots into urban living rooms where all residents can spend time, as seen in Barcelona’s superblocks.

One of the election pledges of Paris Mayor Anne Hidalgo was to remove half of the city’s parking spaces (70,000 of 140,000 total). So far, over 50,000 spots have been removed. Along with investments in cycling infrastructure, support for bike-sharing, and traffic calming, this has led to a threefold increase in bicycle use in the city over the past ten years. The share of active mobility (walking and cycling) rose from 55.4% to 68%, car trips fell by half from 12% to 6%, PM2.5 concentrations decreased by 55% since 2005, and nitrogen dioxide pollution dropped by 50%.

Paris has transformed from transport hell to pleasent place

Before and after

Building regulations are changing

In recent years, city building regulations have been evolving. Cities are gradually moving away from parking minimums—rules requiring developers to provide a certain number of car parking spaces—and instead are introducing maximum limits on how many spaces can be built.

In Seattle, USA, a 2012 reform reduced parking requirements for new buildings based on public transit accessibility and neighborhood character (denser neighborhoods have lower requirements). In many areas, the obligation to provide parking spaces was completely removed. In 2025, the U.S. state of Washington passed a law limiting how many parking spaces cities can require for new multifamily and mixed-use buildings. Cities with over 30,000 residents may now require no more than 0.5 parking spaces per unit in residential developments with multiple families.

In Copenhagen, Denmark, parking maxima are defined relative to the gross floor area of buildings. For example, in the city center, the maximum ratio is 1:357—one parking space per 357 m² of building floor area. In some developing areas (Nordhavn, Ørestad), car-free or car-light neighborhoods are being created, with minimal parking provided, compensated by access to metro lines or mandatory bicycle parking within buildings.

Parking policy in Seattle

Prague subsidizes car drivers, Vienna finances the metro from parking fees

An expert analysis by Deloitte estimated the cost of a single parking space in Prague at approximately 7,400 CZK per year. This amount includes management, maintenance, and road repairs carried out by TSK (note: the analysis is from 2020; the figure is higher today due to inflation). With an annual parking permit priced at 1,200 CZK, it can be calculated that the city subsidizes on-street parking by more than six times.

Even towing improperly parked cars does not cover its costs in Prague. In 2024, the difference between revenues and expenses—taking all costs into account—amounted to 58,726,000 CZK against the city. The main parking problems in Prague are caused by high occupancy rates and poor compliance with rules, or insufficient enforcement. Parking prices are too low to achieve a regulatory effect, and lack of enforcement undermines trust in the system.

By contrast, the Austrian capital is almost entirely covered by paid parking zones, except for peripheral and sparsely populated areas. In these zones, visitor parking is typically limited to a maximum of 2 hours. Residents can apply for long-term residential parking permits (“Parkpickerl”) in their district. After expanding paid parking zones to cover nearly the entire city and increasing fines for illegal parking, occupancy of parking spaces decreased by an average of 30%. Streets saw a reduction particularly in cars commuting from outside Vienna.

Another benefit for the city is the revenue from these new parking zones. In the first year after their introduction, the city earned a record 167.5 million euros from parking—50 million more than the previous year. These funds are then used to improve public transport.

Zones of payed parking in Vienna

Parking and international city collaboration

From 2018 to 2022, the international European project PARK4SUMP was carried out, aiming to improve parking policies in sixteen participating cities and integrate them into Sustainable Urban Mobility Plans (SUMP). Within the project, cities were divided into mentoring cities (Rotterdam, Freiburg, Krakow, Trondheim…) and following cities (Sofia, Tallinn, Zadar, Lisbon, Gdańsk…). Thanks to the project, partner cities managed to transform around 10% of space previously used for parking into other, publicly beneficial purposes. At least 10% of revenues from parking fees were invested in sustainable and active modes of transport.

From meetings of representatives of the sixteen participating cities, two lists of key theses and recommendations were developed for cities regarding the development of comprehensive parking management. The full list of results and recommendations from the PARK4SUMP project is available here.

Key theses and recommendations for cities with less developed or no parking management:

1. A lack of parking spaces, or an expected increase in demand, can be better addressed through parking management rather than simply increasing parking capacity. Management strategies include time restrictions, (dynamic) pricing, and improved enforcement.
2. Parking policy should not focus solely on providing a “sufficient” number of spaces, but also on freeing up space for other uses. One approach is temporary replacement of on-street parking with small parks, restaurant terraces, or bike racks. This demonstrates the potential of urban space and increases public support for permanent changes.
3. Effective parking management leads to better transport mode choices and reduced congestion. Limiting parking availability and using revenues from parking fees to support sustainable mobility encourages residents to choose more sustainable modes of transport. Open communication is key to gaining public support.
4. Free parking does not exist. If drivers do not pay for a parking space in the city, the costs of its operation, maintenance, and enforcement are transferred to local residents, regardless of whether they use a car or not.
5. Parking management does not necessarily lead to political tension or election losses if strategies are fair, transparent, and genuinely improve parking and quality of life in the city.
6. There is no direct correlation between retail success and the number of (paid) parking spaces. In most cities, car drivers contribute less to the local economy than customers using more sustainable modes of transport.

You can learn more in the new Research on Parking Policies in World Cities.

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