The Effect of Changing Distance From Toronto's Central Business District on Parking Prices

Essay by scagneasHigh School, 12th gradeA+, February 2004

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Toronto, Ontario, Canada is one of the most culturally diverse metropolises in the world, with a population of over 4 million people, and a downtown area wielding much of Canada's financial, political, and educational power (United Nations). With many attractive factors, such as business and employment opportunities, entertainment and shopping districts, and the availability of transportation in such a small area, downtown Toronto is quickly becoming very densely populated, with a population of 670,000 people in an area of under 100 square kilometers (Statistics Canada). This population density of over 7000 people per square kilometer will in turn affect demand for housing, services, and parking (Statistics Canada). A fundamental concept of economics is that as demand for a good or service increases, the price of the good or service will increase as well (Parkin). Therefore, in an area with more people living in it, the demand for parking will be higher than a less densely populated area.

As a result, the most densely populated area of the city will be the most expensive. In Toronto, this location is the downtown Central Business District (CBD) area, meaning the highest prices for parking will be located inside of the CBD (Wakefield). One of the prime commercial locations in Toronto is the intersection of Yonge Street and Dundas Street, (heretofore referred to as the YDI) which is surrounded by instantly recognizable retail stores, major shopping centers, restaurants, and skyscrapers; all are features that make the intersection truly valuable, at least in the geographic sense. As one moves away from the YDI, however, the height of the buildings decreases, the frequency of recognizable brand name stores lessens, and the sense of being in a densely populated downtown area rapidly diminishes. The characteristic of decreasing building height is relevant because at the core of...