Ottawa sees boost in parking meter revenue as more people return to work, parking rates increase

Parking signs on the side of a street in Ottawa on Wednesday, May 8, 2024.

The City of Ottawa received a boost in parking revenue in 2024, as more people returned to the office and the city increased parking rates at several locations.

The 2024 Parking Services Annual Report shows the city collected $18.04 million in revenue from on-street and off-street locations in 2024, up from $16.12 million in 2023 and $12.18 million in 2022.

Ottawa operated 3,725 on-street and 2,750 off-street parking spaces in 2024. Staff say there was a small drop in the number of available parking spaces compared to 2023 due to the placement of parking stalls for tour bus parking, construction and updated regulations due to development.

• Motorists will need to pay to park on city streets in ByWard Market, Little Italy during the evenings starting this fall

Parking revenues at municipal parking lots increased $700,000 to $8.48 million last year, with the city saying that is “reflective of increases in demand for longer-term parking as a greater portion of employees returned to the workplace on a part-time or full-time basis.”

Staff say parking fee revenues from on-street parking metres increased by $1.2 million last year compared to 2023, “which is reflective of rebounding demand levels that are now very close to pre-pandemic city-wide.”

Last August, the city increased the hourly on-street parking rate in seven busy areas as part of a new “demand-based pricing framework.” The parking rate jumped from $3.50 to $4 an hour for on-street parking in the ByWard Market, downtown, Chinatown, Little Italy and the Glebe, the first rate increase in five years.

• Ottawa sees boost in parking meter revenue as more people return to work, parking rates increase

Council approved a new “demand-based pricing model” last year for on-street parking spaces, giving city staff the authority to change parking rates in an area when parking demand is either too high or too low. Parking rates will increase in high-demand areas and drop in areas where demand for on-street parking is lower.

The City of Ottawa is set to introduce new parking hours at several locations in the fall, including charging for evening on-street parking in the ByWard Market and parts of Little Italy and the Glebe. There will also be the introduction of paid on-street parking in the Westboro/Wellington West area.

Staff expect changes to parking hours to bring in an additional $3 million in revenue a year.

Pay by phone

Fewer people are using cash to pay for parking at City of Ottawa on-street parking meters.

The report shows only 21 per cent of transactions at on-street spots were cash, down from 29 per cent in 2022.

A total of 44 per cent of motorists used a credit card to pay for parking, while 35 per cent used the pay-by-phone option through an app.

“For the third straight year, there was a reduction in the proportion of credit card transactions in lieu of more people using pay-by-phone,” staff said.