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Downtown Raleigh Sees Economic Boost from Free Parking Pilot Program


If you’ve spent any time here in Downtown Raleigh lately, we hope you've noticed that parking has become a whole lot easier.

That’s thanks to the City of Raleigh’s 2-Hour Free Parking Pilot, a program that launched in late 2024 that has become an effective tool for supporting downtown businesses and boosting visitation.

The concept for the pilot program was simple: offer up to two hours of free weekday parking from 7 am to 7 pm in five city-owned decks.

The pilot was designed to reduce barriers to visiting downtown and to activate unused parking capacity as an economic development tool to bring more visitors to downtown businesses.

Encouraging use of the parking decks allows for more flexible use of on-street parking, contributes to positive foot traffic in the parking decks, and makes downtown more competitive with other shopping districts that offer free parking. 

Earlier this year, we conducted surveys and focus groups to understand how the pilot was performing.

The feedback was clear:

  • 97% of storefront businesses support making the program permanent.
  • 91% say the pilot has had a positive impact on their sales and overall business performance.
  • 95% of downtown visitors also support permanent adoption.
  • 88% say free parking increases their likelihood of coming downtown.

This strong response contributed to Raleigh City Council extending the pilot through December 2025 from its original end date in February 2025.

Raleigh City Council will review the program again on November 18th. To prepare, our team gathered another round of community feedback through onsite intercept surveys at participating decks and a follow-up survey of storefront businesses.

Key highlights from the intercept survey:

  • 31% of respondents said free parking was a main or contributing factor in their decision to visit.
  • Hourly parkers reported spending an average of $27 per visit.
  • Top reasons for visiting included dining (30%), appointments (20%), and shopping (16%).

Storefront businesses continue to report strong benefits:

  • 100% said the program is important for sustaining downtown business activity.
  • 62% heard directly from customers that free parking influenced their visit.
  • 65% reported increased sales during the pilot.

Survey results show that local small business owners and business leaders are seeing the difference firsthand:

One survey respondent shared that clients who once preferred other locations due to parking concerns are now choosing their downtown location again. And all survey respondents said the program is very or extremely important to sustaining downtown business activity, with 86% saying it's extremely important.

The economic impact is compelling. For every $1 invested in the program, $7.65 is generated in downtown spending. Across the five participating decks, that translates to as much as $3.8 million in annual economic benefit.

As DRA President and CEO Bill King notes, "When parking is simple, predictable, and affordable, people are more inclined to spend time and money downtown. The pilot is proving to be a cost-effective strategy for supporting small businesses, increasing foot traffic, and strengthening the overall downtown economy."

Raleigh City Council will review the latest data and community feedback at its November 18 meeting and will consider next steps for the program. If you would like to see this program continue, please consider sharing your feedback with Council members by emailing citycouncilmembers@raleighnc.gov.