Question about parking garage rates (Chicago: how much, zoning, costs)

[oakparkdude]

So I had an appointment near water tower last work week and being in a hurry (and late), I decided to drive. I drove into a garage, threw my keys at the attendant, and literally ran as fast as I could to my meeting. When I came back, I was pleasantly surprised that my fee was only $12 because I parked before 9 AM (early bird rate).

So that got me thinking. Why is parking CHEAPER if you come early on weekdays (and potentially stay all day.) If I parked after 9 AM, it could easily be double or triple or more. The early bird parking rate doesn't apply on weekends either. Based on simple economics, it seems that rates should be higher during the work week when demand is greater, and coming early shouldn't make a difference. Is there some principle of economics I'm missing or is it some regulatory/government interference in parking rates?

[alwaystraveling25]

Originally Posted by sukwoo

So I had an appointment near water tower last work week and being in a hurry (and late), I decided to drive. I drove into a garage, threw my keys at the attendant, and literally ran as fast as I could to my meeting. When I came back, I was pleasantly surprised that my fee was only $12 because I parked before 9 AM (early bird rate).

So that got me thinking. Why is parking CHEAPER if you come early on weekdays (and potentially stay all day.) If I parked after 9 AM, it could easily be double or triple or more. The early bird parking rate doesn't apply on weekends either. Based on simple economics, it seems that rates should be higher during the work week when demand is greater, and coming early shouldn't make a difference. Is there some principle of economics I'm missing or is it some regulatory/government interference in parking rates?

I believe that daily rate is influenced by commuters who choose to drive to work versus taking public transportation. There is no way daily commuters would pay 30-40 dollars PER DAY to park their car (at least, the majority of them, I know some of the very wealthy and elite could care less how much it costs), so garages are competitive for "early bird specials". It's similar to how you get a discount if you park monthly versus daily.

Also, it is encouraging those commuters to come early for a "good price", which fills their lot up. A full lot at a reduced price is worth a lot more to a garage owner then an expensive lot that is only marginally filled. Just my two cents on the matter.

[Lookout Kid]

Originally Posted by sukwoo

Based on simple economics, it seems that rates should be higher during the work week when demand is greater, and coming early shouldn't make a difference.

Shhhhh!!! Keep that quiet! The last thing we need is for "early bird specials" to disappear.

By the way, doesn't it seem like downtown parking costs have greatly outpaced inflation? I remember parking downtown in the mid nineties and rarely paying more than 15 bucks on a busy weekend. Now it's almost always close to $30. It's just not worth it anymore.

[oakparkdude]

Originally Posted by alwaystraveling25

I believe that daily rate is influenced by commuters who choose to drive to work versus taking public transportation. There is no way daily commuters would pay 30-40 dollars PER DAY to park their car (at least, the majority of them, I know some of the very wealthy and elite could care less how much it costs), so garages are competitive for "early bird specials". It's similar to how you get a discount if you park monthly versus daily.

Also, it is encouraging those commuters to come early for a "good price", which fills their lot up. A full lot at a reduced price is worth a lot more to a garage owner then an expensive lot that is only marginally filled. Just my two cents on the matter.

I suppose that makes sense. I guess it stratifies the market into daily commuters (who may take Metra if parking is too expensive) versus leisure drivers (who are more price insensitive).

[oakparkdude]

Originally Posted by Lookout Kid

Shhhhh!!! Keep that quiet! The last thing we need is for "early bird specials" to disappear.

By the way, doesn't it seem like downtown parking costs have greatly outpaced inflation? I remember parking downtown in the mid nineties and rarely paying more than 15 bucks on a busy weekend. Now it's almost always close to $30. It's just not worth it anymore.

Its a testament to the vitality and draw of downtown Chicago. Also, several surface parking lots have disappeared due to development. Increased demand and decreased supply result in higher parking rates. Overall, its good for the city.

[Lookout Kid]

Originally Posted by sukwoo

Its a testament to the vitality and draw of downtown Chicago. Also, several surface parking lots have disappeared due to development. Increased demand and decreased supply result in higher parking rates. Overall, its good for the city.

Surface lots in River North and Streeterville have been disappearing fast, and I agree this is a positive development since a surface parking lot is a terrible use of land. But I'm not convinced that parking capacity has been lost. Almost every new high-rise has a multi-level ramp, and zoning typically requires at least one space per residential unit--and many are open to public parking. But of course, many of these spaces are used by building residents. So increased supply has been met with increased demand created by the new development.

[2blessed2stress]

This is one of many things about Chicago that just blows my mind! I get mad when I go downtown here and parking is $10, I refused to pay that much! LOL! I am always floored by the parking prices in downtown Chicago

[oakparkdude]

Originally Posted by 2blessed2stress

This is one of many things about Chicago that just blows my mind! I get mad when I go downtown here and parking is $10, I refused to pay that much! LOL! I am always floored by the parking prices in downtown Chicago

Supply and demand explains why parking Chicago is more expensive than Minneapolis.

[2blessed2stress]

Originally Posted by sukwoo

Supply and demand explains why parking Chicago is more expensive than Minneapolis.

LOL, uh, yes, I understand that! I just think it's outrageous.

[skipcromer]

Originally Posted by 2blessed2stress

LOL, uh, yes, I understand that! I just think it's outrageous.

It would only be outrageous if there was no alternative.