The U.S. parking industry, with more than 140,000 employees, generated about $25 billion in revenue in 2015, states a study by the National Parking Association (NPA) released late last year. A key finding shows that parking revenue is projected to grow from about $25 billion in 2015 to nearly $29 billion by 2018.
The second edition of the “NPA Parking Demand Report: Fundamental Economic & Market Indicators” analyzes the diverse fundamental economic and demographic factors underpinning parking demand.
“The purpose of this [“2016-2018 Market Forecast”] study is to understand the long-term parking demand potential and the trends that are shaping the future of the parking industry,” said Christine Banning, NPA President.
Other key study findings include:
The No. 1 reason for parking growth is a population expansion that’s projected to increase from 320 million in 2015 to 400 million by 2050.
A 15-year trend continues, with 86% of U.S. commuters saying that driving, and parking, their vehicle is their dominant mode of transportation.
About 119.9 million Americans drive to work (2013 U.S. Census).
New York, Los Angeles, Chicago, Houston and Phoenix highlight urbanization and density, and have the most parking growth potential.
The top two states in terms of parking revenue are California ($1.4 billion) and New York ($1.2 billion).
By region, population density leads to parking growth in the New York/Northeast corridor. The West Coast, anchored by California, continues to be a parking powerhouse. And Florida is the third most populous state, presenting future revenue growth opportunities.
In addition to population growth, the report says, other factors increasing parking demand include high employment, more commuters, more people driving for vacations, a rise in Baby Boomers driving to seek healthcare services, more students at colleges and universities driving to or on campus, municipalities increasing parking development, and positive changes to parking pricing methods.
The No. 1 reason
for parking growth is
a population expansion
that’s projected
to increase from
320 million in 2015 to
400 million by 2050.
The five factors that could negatively affect parking demand include unemployment, decreasing GDP, lower consumer confidence, zoning laws that limit parking lot construction, and punitive taxes and/or rising fuel costs.
The 47-page Parking Demand Report, sponsored by Denison Parking of Indianapolis and conducted by the Parking Market Research Co., assembles substantive research data, analyzes the data, and draws correlations between market conditions and their relationship to the parking industry.
“When the NPA decided to embark upon a major research agenda, Denison Parking joined forces with it to develop a national research committee, build relationships with leading researchers, and bring peer review to the research process,” said Mark Pratt, President and CEO of Denison Parking and Chair of NPA’s National Research Committee.
The complete study analyzes private sector, municipal, college/university and hospital/medical center trends in detail, identifying market size, changes in the marketplace and factors impacting demand.
For more information, go to the NPA website weareparking.org
