The map pictured shows the amount of surface parking lots in the Lloyd District of Portland. As you may have guessed by the huge amount of red on your screen, over 25% of this land is covered by parking lots! This does not include underground lots either.

Is this really a problem though? Of course, the Lloyd district is hardly a residential hub. We would likely expect and want an area which hosts the OCC and Moda Center Arena to have ample space for parking, otherwise the streets would be pure chaos. After all, people need somewhere to put their cars.

However, some have speculated that the reasons for the massive amount of parking lots is a little more sinister.

By buying up land and turning it in to a parking lot. Land owners are able to create at the very least – some sort of income which can cover taxes. At the same time, whilst the land hosts a parking lot, it does not have to pay much property tax, when compared to the likes of a hotel, shopping mall or convention center.

So as a result, land buyers are able to speculate on the price of land rising, by creating a parking lot and covering costs. When the land does rise, they will be able to sell this to an investor, or create a building of their own.

One way around this, would be to implement a land tax, rather than a property tax. This may cause developers to speed up their production and not sit and wait for land to appreciate in value. Although of course, there are obvious drawbacks to this as well.

In summary, there is likely no silver bullet solution to this situation. Until then, we are going to have a huge amount of car parks whether we like it or not!

If you think you know a better solution to the problem, please let us know in the comments section.