Multiple Regions Lower Parking Fees, Experts: Alleviates Parking Shortage Problem | Homebody Finance

[Homebody Finance | Expert Face-to-Face] According to The Paper, since 2026, many cities have announced reductions in parking fees for public parking lots and on-street parking spaces.

Specifically, Yichang, Hubei, lowered the starting price for public parking from 5 yuan for the first 2 hours to 3 yuan for the first hour; Shangluo, Shaanxi, reduced the maximum continuous parking fee in the core area from 28 yuan to 18 yuan; Hami, Xinjiang, extended free parking time from 30 minutes to 40 minutes, and daytime first-hour charges were lowered from 3 yuan to 2 yuan.

As vehicle ownership rapidly increases, the problems of “expensive and difficult parking” are becoming more prominent. Jiang Han, senior researcher at Pangu Think Tank, believes that excessively high parking fees can suppress consumption. In some major city commercial districts, parking fees can reach up to 20 yuan per hour, or even 60 yuan. Consumers may reduce their time in commercial areas due to high parking costs, impacting foot traffic and sales for merchants.

Jiang Han points out that high parking fees have certain positive effects. When setting prices, local governments consider using the “price lever” to guide travel modes, alleviate congestion in core urban areas, and improve parking space utilization. “However, price regulation should be within a reasonable range, or it may affect residents’ willingness to travel.”

He believes that the policies to lower parking fees across many cities help ease parking difficulties. Price reductions and extended free periods can guide vehicles to park more orderly, increase turnover rates, and serve more people with limited parking spaces. Additionally, lowering parking fees in core commercial districts can stimulate consumption, encouraging citizens to drive out for shopping and dining, which can boost the development of catering, retail, and other service industries. This is a “subtraction” in parking fees for a “plus” in urban consumption.

“More importantly, it can standardize charging practices, adjust and publicize uniform pricing standards, making parking fees more transparent and fair, and improve the consumer experience for vehicle owners. This is also a shift from city management to city services,” Jiang Han said.

(Produced by Zheng Zheng, edited by Jia Yifu, Jiang Ying, Homebody Finance Production)