Raleigh Considers Raising Parking Rates to Address Budget Gap
Raleigh leaders are weighing potential increases to downtown parking rates as the city looks for ways to close a budget shortfall.
The Raleigh City Council is reviewing proposals that would raise the cost of on-street parking and adjust fees in city-owned parking garages. However, the idea has already sparked concern among downtown business owners who worry higher prices could discourage visitors.
Proposed Parking Changes
One proposal would increase on-street parking rates from the current $1.25 per hour to as much as $2.50 per hour. The plan also includes possible price increases for parking in city-operated garages.
Council members are also discussing whether to scale back or eliminate the two-hour free parking program introduced in city garages last year. The program has been popular with visitors and shoppers looking to spend time downtown.
Business Owners Voice Concerns
Some small business owners say they fear higher parking costs could drive customers away. Downtown Raleigh already competes with other shopping and entertainment districts such as Raleigh Iron Works, North Hills, and Fenton.
City officials are also considering eliminating the small business parking program. That program currently allows employees at participating businesses to park for free in select garages. Another option under discussion is increasing monthly parking rates.
Why the Changes Are Being Considered
City staff say the parking system has faced rising maintenance costs while revenue has remained relatively flat. As a result, Raleigh has had to rely on money from the general fund in recent years to cover the gap.
Council member Megan Patton noted the importance of free parking incentives.
“That weekend free parking is important. I get a lot of good feedback about two hour free parking. I think switching both of those dials feels like it’s going to get a behavior change, but perhaps not the one that we’re looking for,” Patton said.
What Happens Next
If approved, the proposed changes would not take effect immediately. Officials say any new parking rates or program adjustments would likely begin in 2027.
City staff also noted that Raleigh’s current parking prices remain lower than those in many cities of similar size, even with the proposed increases.