Houston is growing rapidly. In fact, the city saw the second-highest population growth in the U.S. in 2024, with 43,000 new residents last year. With all this rapid growth comes the need for more parking.

Chad Stout is the general manager at Universal Parking’s new Houston office, where he oversees operations and supports the continued development and improvement of parking solutions for the fast-growing city. He brings nearly 30 years of experience in the parking industry to his role. Chad began his career in the parking industry working as a valet in college before moving on to Brookfield Properties in Houston, TX, where he managed over 20 parking locations. He also previously held positions at Central Parking and SP Plus Corporation in Charlotte, NC.

We spoke with Chad about the current state of parking in Houston and what’s on the horizon.

The widespread adoption of these smart parking solutions and the rise of app-based payment systems are helping make parking more efficient.

From July 2023 to July 2024, only New York added more residents than Houston. With this rapid growth, how is the city handling expansion? How does that impact parking?

Downtown Houston experienced a 40 percent population increase between 2018 and 2023, thanks to the Downtown Living Initiative, which brought more than 4,200 apartment units to the area. To encourage further development, city planners are reevaluating minimum parking requirements in select neighborhoods, which will also promote more walkable environments. In the past, developers were required to build a set number of parking spaces per square foot of residential or commercial space, often resulting in far more spaces than were actually needed. Removing these requirements gives developers the freedom to use land more efficiently.

Despite this downtown growth, Houston remains one of the most car-dependent major U.S. cities due to its sprawling layout. Furthermore, the city lacks a particularly robust mass transit system. Like many other cities with a heavy reliance on cars but a desire to encourage growth, the city is experiencing some real growing pains when it comes to the traditional parking infrastructure.

The parking landscape in Houston is more expansive than many other cities. While parking facilities are concentrated around the downtown area, additional market opportunities are available at key locations, such as the Galleria, Medical Center, and Galveston. With the continued addition of parking to support special events, such as the 2026 FIFA World Cup, there is no shortage of potential for expansion.

What trends are shaping how people park in the city?

On the policy side, we discussed the relaxed parking minimums in areas like Midtown and EaDo (East Downtown), which has spurred more development without expanding parking. Reducing the amount of undeveloped land also encourages shared parking among area property owners, increasing parking opportunities while reducing the land used for it.

On the consumer side, drivers are looking for convenience. They are losing patience with the time it takes to find available parking and dealing with faulty payment systems. We are seeing an increase in the use of parking apps that allow drivers to find, reserve and pay for parking spots from their phones, helping to avoid the inconvenience of malfunctioning machines and cash-only parking. Some apps even provide real-time visibility into current parking availability, helping drivers reduce the time spent circling for a spot, as well as offering options for remote time extensions and flexible payment methods.

Can you tell me more about how technology is playing a role in this transformation?

Advancements in technology amidst the ongoing urbanization of cities like Houston are transforming parking as we know it. Some business owners are even exploring seamless, integrated payment options that eliminate the need for apps, kiosks or manual validation altogether. Options like license plate scanning can sync with retail loyalty programs and don’t require parkers to take tickets or pay at a kiosk.

We are seeing Houston businesses rapidly adopt smart parking technology, and I expect that trend to continue.

Does technology solve most parking issues or do any challenges remain?

The widespread adoption of these smart parking solutions and the rise of app-based payment systems are helping make parking more efficient. However, parking solutions are not one-size-fits-all—for businesses or parkers. There are still some drivers who don’t use smartphones, and some parkers need to pay in cash. Some businesses may not be able to afford the necessary infrastructure to support smart parking technology.

Other issues with parking apps include connection problems in areas with poor cell service or mistakes, such as entering the wrong license plate or zone number, which can result in unnecessary fines. That said, parking apps tend to be most effective in urban areas, like Houston, because parking demand is high and digital infrastructure is robust.

What does the future of parking look like in Houston?

While I do expect more automation and the use of technology to continue, I think there is a need for a more hybrid approach that integrates smart apps with staffed parking lots.

In a hybrid system, smart apps offer real-time availability and contactless payment options to parkers while also providing key data insights on usage patterns, peak parking times, and durations to businesses and lot owners. Staffed operators can offer personal assistance to parkers and provide an enhanced feeling of security.

This combination enables businesses to optimize parking turnover, implement dynamic pricing, and create a safer and more reliable parking environment. A hybrid model is especially beneficial for Houston’s busy entertainment and retail districts, where customer expectations are high, and space management is critical.

Regardless of which innovations take hold, it’s clear Houston’s parking landscape will continue to grow and evolve.

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