NB: I believe this topic has been discussed much better many times elsewhere on the net and in print. I am writing simply to clarify my own thoughts. I apologize for the primitive graphics.
Parking for personal vehicles is the bane of urban planners across the world. The storage of these large, heavy items takes up a lot of space that can't be used for much else, even when the vehicles are elsewhere. The surface of parking areas allows for little to no vegetation, depending on the type of material used. Hard surfaces increases storm runoff, which slows the recharge of aquifers and raises the risk of flash flooding. But people want cars for many reasons, and thus people want parking.
Personal vehicles are usually the first or second most expensive item a person or family purchases, depending on whether they are homeowners. Given the amount of money at stake, the decision by many to store a vehicle under a roof is unsurprising. Under protection, a vehicle will be dry most of the time, reducing corrosion. A vehicle is also protected from weather damage due to storms, and from deterioration caused ultraviolet radiation. Storing a vehicle inside also reduces the chance of it being stolen, vandalized, or damaged by a careless driver. Trees cannot drop sap and birds cannot defecate on a vehicle under a roof.
Parking inside a structure makes getting in and out of the vehicle during inclement weather easier. It also makes initial operation of the vehicle more pleasant, as vehicle will be cooler in sunny climates, and free of ice and snow in northern climates. As more vehicles become electrified, having a convenient place to charge the vehicle without the risk of it being disconnected and the charging equipment stolen will be demanded by many people
Storing a vehicle inside is not without risk. Vehicles can catch on fire, or leak unhealthy liquids. And it can be expensive to create a separate structure or expand the main structure to accommodate vehicles. A typical two-car garage is about 500 sq. ft., or from about 1/3 to 1/5 of the space in the living quarters in a typical single-family detached home. In most cases, the amount of money saved by housing a vehicle in a structure will be less than the cost of the structure. That is why a great many vehicles are parked outside on driveways. Other vehicles spend most of their time in private parking lots, or parked on public rights-of-way.
Street parking is problematic for a number of reasons. In many cases it is not priced directly, meaning there is no hourly, daily, monthly, or yearly charge paid by driver to park the vehicle which reflects the cost of the space. Instead, the cost of building and maintaining the area on the street comes from taxes and fees. Thus the incentive is for drivers to use street parking - especially in denser areas where most homes do not have provision for off-street parking - without any concern for how it affects the area as a whole. Street parking also uses up large portions of the public right-of-way. In historic areas, that can mean limiting sidewalk width to the bare minimum in order to accommodate empty, non-moving vehicles. In newer areas, it means reducing the amount of taxable land and increasing the amount of hardscape.
The obvious response to those problems is to limit the demand, which is done in a number of ways. Some jurisdictions require permits prior to a vehicle being street parked. The permits usually come with a nominal fee, but the demand control is mostly accomplished by limiting their number. Another way demand is limited is through metering. Charging a sufficiently high price for a spot encourages turnover, which allows drivers to find spaces close to the location they wish to visit. This is important for business establishments that depend on short (1/2 to 2 hour) in-person visits. Often these metered spots revert to free parking overnight, and the area where they are install is always limited. The technology used for metering has changed over the years, moving from mechanical coin-operated meters for individual spots to computerized pay-and-display machines for a large number of spots, but the purpose remains the same.
Another way jurisdictions limit demand for street parking is through mandating space for parking be set aside on private lots during building construction. These parking minimums are controversial because they can greatly increase the price of a home and cause a spiral of reduced density and increased vehicle travel, resulting in the demand for more parking itself. The minimums are often arbitrarily determined, forcing developers to overbuild parking in many circumstances. Some jurisdictions have moved away from these standards, and have seen more housing built in downtown areas.
In stark contrast to American practice, Japan has implemented policies of neither requiring parking minimums nor providing for on-street parking in residential areas. Any vehicle registered in Japan must have a documented place to park. To catch vehicle owners that are dishonest about having a spot, many Japanese jurisdictions ban all on-street parking overnight, including in metered spots, though it isn't fully enforced until about 3AM.
While the goal of reducing sprawl is a worthwhile goal, parking still needs to be accommodated for the foreseeable future. The best way forward is to decouple it from housing as much as possible in urban areas, reduce parking minimums wherever possible, and price public parking appropriately.
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