by Rick Crouch | Community Issues, Economic and Financial News, Living & Lifestyle Standards, Miscellaneous Community News, Municipal Affairs
Parking might seem like a simple convenience – but it’s actually one of the most influential (and overlooked) factors shaping our communities, local economies, and even real estate values. Our society is for the most part hooked on vehicular travel. One need look no further than Highway 401 through Toronto which is said to be the busiest highway in the world. Despite a push for both public and rapid transit as well as increased pedestrian walkways, the demand for parking is not about to go away anytime soon. As such it raises the following question for debate:
Should parking be free, or should we pay for it?
In Collingwood, the practice of paid municipal parking along Hurontario Street – our main downtown corridor and in other locations – has sparked an important conversation, with the town currently gathering feedback through its online public survey.
Nearby Midland offers one useful comparison as do other municipalities, maintaining free downtown parking to attract visitors and support local businesses. As a sidenote, Midland’s annual Butter Tart Festival draws tens of thousands of attendees when the main section of the downtown street is closed. Further, most other communities around southern Georgian Bay do not charge for parking in their downtown cores: Penetang, Parry Sound, Thornbury, Meaford and Owen Sound. It should be pointed out that parking is free on Bruce Street in Thornbury but a small municipal lot off Highway 26 in town and beaches in the Blue Mountains have paid parking. Parking in these locations is free for Blue Mountains residents provided you register your license plate with the municipality. So that begs the question, what’s the right approach?
Let’s explore the economic benefits and drawbacks of charging for parking – and what it means for towns like Collingwood.
Parking: The Largest Land Use You Never Think About
Before diving into costs and other issues, it’s worth considering some facts. Years ago I read a study identifying “parking” as one of the largest consumers of land in North America. Think about it. We allocate and or dedicate space for parking at:
- Our homes
- Offices, factories and other places of work
- Retail stores, plazas and shopping malls
- Schools, churches, hospitals
- Recreational amenities like arenas, parks and beaches
From a real estate perspective, this matters. Land used for parking is land not used for housing, green space for public enjoyment, commercial development or other often important purposes – all of which directly impact property values not to mention lifestyle. When evaluating vacant land, one of the fundamental approaches I learned many years ago when studying to obtain my Market Value Appraiser designation, was to ask the question, “what is the highest and best use for a property.”
The Economic Case FOR Paid Parking
- Better Turnover = More Customers
Paid parking encourages drivers to:
- Park for shorter periods to avoid both the cost and the potential for a fine.
- Move their vehicles more frequently freeing up space for others.
This creates higher turnover, parking spaces occupied for shorter periods of time mean more potential customers for local businesses throughout the day.
Examples: In cities like San Francisco, demand – based parking pricing has improved availability. Demand-based parking offers flexilble parking rates based on the day of the week, time of day and location, making it easier for shoppers to find spots quickly.
Closer to home, Calgary has what is referred to as demand – responsive parking, a controlled version of the demand – based concept which sets different price zones across the city and adjusts rates periodically based on demand data.
I’ve done some research of my own looking at the history of parking in downtown Collingwood. On the chart below is a summary of the average time (duration) that consumers parked while visting banks, stores and other businesses from the 1970’s through to the 2020’s. The trend is clearly on a downward slope and this came as no surprise. Between online shopping and banking along with an abundance of shopping on the Collingwood’s west side where parking if free, the need and no doubt the desire to the go downtown, search for a place to park for which you must then pay for, has diminished.Revenue That Can Improve the Community
On the flip side, parking fees can generate significant municipal revenue provided the cost of collecting those fees in managed and minimized. Personally I would like to see a separate financial profit or loss statement that reflects the reality of whether under the current practice in Collingwood, is money (profit) made or lost with paid parking?
Net proceeds if they exist from paid parking is often or can be reinvested into a number of initiatives such as:
- Streetscape improvements (benches, lighting, landscaping)
- Improved snow removal and road maintenance
- Events such as Midland’s Butter Tart and Elmvale’s Maple Syrup Festivals
- Updated dedicated public spaces with bike racks etc.
Example: In Calgary, parking revenue from downtown is reinvested into the local area through a Parking Revenue Reinvestment Program, funding beautification and public realm upgrades. The result: a more vibrant, walkable downtown that benefits residents, visitors and property values alike.
Below is what can be created, it just takes vision with a designated funding program to support the effort. These photos are examples as to what can be done with reinvestment and when a thoughtful “vision” is applied.
Encourages Alternative Transportation Charging for parking can:
- Promote walking and cycling
- Support increased transit use
- Reduce traffic congestion
- Less vehicular exhaust yields a more sustainable environment for outdoor use and enjoyment
These factors can make downtown areas more appealing places to live and enjoy leading to better physical and mental health. This can also enhance the local businesses as well as real estate demand and value.
The Economic Case AGAINST Paid Parking It Can Discourage Visitors
Even modest parking fees can create friction:
- Visitors may choose locations with free parking
- Impulse visits can decline
These are relevant factors to consider when nearby municipalities – like Midland and others as mentioned above – offer no charge, hassle-free parking. What do they know or have proven that Collingwood is unaware of?
Impact on Small Businesses
Local businesses often worry that:
- Customers will shorten visits or avoid downtown altogether, the chart above clearly shows that the duration of time people park hence spend downtown is decreasing
- Big-box stores (with free parking) gain an advantage
- Online shopping is growing globally while visits to malls and other brick and mortar retailers are experiencing a decline
Vacant Stores Make Downtown Streets Unappealing
Example: Some smaller municipalities that introduced paid parking saw initial declines in foot traffic, particularly during early implementation phases. A study of two retail locations by Starbucks found introducing a $0.50/hour parking fee reduced customer traffic by 30%.
Greater Sudbury found paid parking was a factor that lead to declines in foot traffic and business revenue in their downtown core. Perception Matters Sometimes the issue isn’t just cost – it’s perception:
- Paid parking can feel to some like an added “tax”
- Complicated apps, payment and or enforcement can frustrate users
- Collingwood has two differemt types of payment kiosks neither of which are user friendly for visitors and especially seniors
Collingwood Paid Parking Kiosks
- In real estate, lifestyle perception is everything. A downtown seen as inconvenient may be less attractive to both real esatet buyers and visitors alike.
Finding the Balance: What Works Best?
The most successful communities that choose to charge for parking often take a hybrid approach, such as:
- Free short-term parking (first 1–2 hours)
- Paid longer – term parking
- Lower hourly fees in less desirable locations such as on side streets
- Free evenings, weekends and holidays
- Seasonal pricing (tourist vs off – season), summer versus winter
This balances:
- Accessibility for visitors
- Turnover for businesses
- Revenue for community improvements
Why This Matters for Real Estate
Parking policies directly influence:
- Downtown vibrancy → affects home desirability
- Commercial success → impacts local economy ie: business revenues
- Land use efficiency → shapes future development
- Safety → greater pedestrial traffic can decrease criminal activity improving public confidence and trust
In growing communities like Collingwood, these decisions play a role in:
- Community popularity and attractiveness
- Property values
- Investment potential
- Overall quality of life both from a physical and mental perspective
💬 Final Thoughts This is one of those situations where there is no one-size – fits – all answer. Paid parking can fund meaningful improvements and improve access – but if that is the chosen route, it must be implemented carefully to avoid harming the very businesses and community it’s meant to support. To facilitate this, a parking revenue reinvestment program similar to what was done in Calgary could be considered and implemented to fulfill the following objectives in paid parking areas:
- Facilitate a strong pedestrian environment
- Provide incremental improvements to area parking
- Enhance area urban design
- Add to the vibrancy of the prime downtown core
To guide the financial approach for parking, the following principles need to apply:
- The parking service shall be self-supported and not require tax payer support.
- Maximize the return of net revenues from Parking by way of a positive annual return.
- Support Town priorities through use of the annual return.
- Harmonize support for external festivals, events and non-profit activities.
As Collingwood gathers feedback, this is an opportunity for residents, business owners, and property investors to help shape a parking strategy that supports both the Town’s economic goals, vitality and livability with both current residents and those considering a potential move here.
NOTE: The author is a Broker, Market Value Appraiser-Residential with Sotheby’s International Realty Canada and a Past President (2008) of the One Point Association of REALTORS®.
This post is not intended to solicit homes or other properties already listed for sale.
📧 [email protected] 📞 Phone 705-443-1037 🌐 www.rickcrouch.realtor
