While they remain among the lowest in the nation, monthly parking rates in Phoenix grew faster this year than in any other major metro area in the country. A new annual report on parking rates fromThe strange thing is the light rail is causing more people to drive downtown. Perhaps downtown parking fees should be harvested as value capture, since there seems to be some sort of causation according to the article. says the median unreserved monthly parking rate in Phoenix is $65. That’s up 24 percent from last year’s survey, while the national average declined 1 percent. Two years ago, the average in Phoenix was just $35 a month.
“With the light rail’s capability of moving more people in and out of downtown, we are beginning to see entertainment venues and businesses shift from the Camelback Corridor and other metro areas to downtown Phoenix to take advantage of light rail traffic,” Miscio said. “This shift is also driving more auto traffic into downtown, increasing parking garage usage and rates during both the daytime and evening.”Though businesses moved, development has been slow in Phoenix, for obvious reasons. But while the line connects destinations, according to local developers it's lacking in housing density, which is another likely reason that more people are driving and parking rates are higher. It's times like these that looking at value capture possibilities to pay for more transit and related infrastructure is probably a good idea. Especially since there is likely to be a residential building uptick if there is a lack of options along the line.