Sydney an unwanted global leader in exorbitant parking costs

Sydney’s CBD wears the unenviable crown of being one of the world’s most expensive cities for parking with fees far outstripping comparable US cities and other Australian state capitals.

NRMA-commissioned research conducted by Bitzios Consulting and with input from Business Sydney and Business Western Sydney, found an average all-day parking rate in Sydney was equivalent to $US51, double that of Seattle at $US23, San Diego $US25 and San Francisco $US27.

Sydney’s exorbitant average daily parking costs also far exceed those of Brisbane and Melbourne at $US38 and $US39 respectively. The city’s parking costs have increased on average by 9 per cent in real terms since 2016 while disposable income has fallen 13 per cent over the same period.

Disposable incomes in Sydney have reduced at a greater rate than in comparable cities in the US, where parking fees have remained relatively stable and have even fallen in San Francisco.

As parking costs rise across the Sydney CBD, available parking has fallen from a ratio of 0.21 spaces per employee in 2014 to just 0.14 spaces in 2023.

The NRMA has today released its Parkin’ Mad report which found Sydney daily parking costs benchmark at approximately 20 per cent higher than they should be considering factors such as the size of the city and its cost of living.

In Western Sydney CBDs, the Parkin’ Mad report also noted critical parking shortages. Parramatta CBD has lost about 2,000 parking spaces in five years due to the closure of three multi-storey carparks.

The report also found that many of the city’s 68 parking wayfinding signs complicated driver navigation and could be better located.

In the Liverpool CBD, high on-street parking occupancy rates of more than 85% have resulted in accessibility challenges, missed economic activity and parking-induced congestion.

The Parkin’ Mad report identifies the need for:

• An overhaul of parking fees - including the capping of increases across Greater Sydney
• A review of state-run parking levies
• Expansion of park-and-ride facilities at public transport hubs
• Improved use of currently under-used parking spaces with better use of data.
• A Western Sydney Parking Inquiry.

Parkin’ Mad also calls for an end to the disjointed approach to using real-time data apps currently adopted by various councils in the model similar to the Park ‘n’ Pay app. A single app available to the public which covers Greater Sydney would significantly improve the customer experience.

NRMA spokesperson Peter Khoury said when Sydney motorists were forced to pay double the daily parking fees of some of their counterparts in the United States it was clear the system was broken and needed to be fixed.

“Sydney’s daily parking fees are hitting ridiculous heights at a time when family budgets are stretched and Sydneysiders can afford it least,” Mr Khoury said.

“Parking costs continue to spike in Sydney at the same time disposable incomes are falling and we know this imbalance is increasingly unsustainable – at the same time the number of available parking spaces per capita in Sydney is falling – something needs to be done to rectify this problem.”

Executive Director of Business Sydney Paul Nicolaou said it was vital that parking was made more affordable and accessible.

“There is no doubt that three words sum up Sydney’s parking dilemma – it is expensive, scarce and fragmented,” Mr Nicolaou said.

“The more that Sydneysiders have to spend on parking leaves less income to spend on the economy and that hits the hospitably, retail and tourism sectors very hard. Let’s hope this report opens serious debate and leads to proper solutions.”

Another key recommendation of Parkin’ Mad is a Western Sydney Parking Inquiry to develop tailored parking solutions for fast-growing suburban CBDs that are surrounded by huge car-dependent populations.

Executive Director of Business Western Sydney David Borger said getting parking right was critical to reactivate the economies of suburban CBDs post-COVID.

“Parramatta has shut down three multi-level carparks and light rail, while welcome, has worsened existing wayfinding difficulties, making the Parramatta CBD a challenging place to navigate and park in,” Mr Borger said.

“Meanwhile, in Liverpool, the visitor experience isn’t as seamless as it could be due to congestion as motorists circle for limited spots. From better designed Kiss and Ride zones to an integrated parking app for our whole city, a Western Sydney Parking Inquiry will get the ball rolling on solutions and allow us to hear the perspectives of residents, workers and businesses.”